Rossell India Ltd Stock Hits 52-Week Low Amidst Continued Underperformance

Stock Price Movement and Market Context

On 30 Dec 2025, Rossell India Ltd’s share price touched Rs.48.13, the lowest level in the past year, underscoring a downward trajectory that has persisted over recent months. Despite this, the stock marginally outperformed its sector by 0.44% on the day, though it remains substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This indicates sustained selling pressure and a lack of upward momentum in the near term.

Meanwhile, the broader market, represented by the Sensex, opened lower by 94.55 points and was trading at 84,578.97, down 0.14%. The Sensex remains close to its 52-week high of 86,159.02, just 1.87% away, reflecting a relatively resilient market environment contrasting with Rossell India’s performance.

Comparative Performance Over One Year

Rossell India Ltd’s stock has declined by 35.72% over the last 12 months, a stark contrast to the Sensex’s positive return of 8.09% during the same period. This underperformance extends beyond the one-year horizon, with the stock lagging behind the BSE500 index over the past three years, one year, and three months. The 52-week high for the stock was Rs.86.65, highlighting the extent of the recent decline.

Financial Metrics and Fundamental Assessment

Rossell India Ltd’s long-term financial indicators reveal areas of concern. The company has experienced a negative compound annual growth rate (CAGR) of -18.57% in operating profits over the past five years, signalling a contraction in core earnings. Additionally, the firm’s ability to service debt is limited, with a Debt to EBITDA ratio of 3.54 times, indicating a relatively high leverage position compared to earnings before interest, taxes, depreciation, and amortisation.

Profitability metrics also reflect subdued performance. The average Return on Equity (ROE) stands at 7.59%, suggesting modest returns generated on shareholders’ funds. The Return on Capital Employed (ROCE) is recorded at 5.4%, which, while low, contributes to the company’s valuation metrics.

Despite these challenges, the stock’s valuation appears attractive on certain parameters. The Enterprise Value to Capital Employed ratio is 0.8, indicating that the market values the company below the capital employed, a factor that may appeal to value-focused assessments. Furthermore, the company’s profits have risen by 11.8% over the past year, even as the stock price declined, resulting in a Price/Earnings to Growth (PEG) ratio of 1.1. This suggests that earnings growth has not been reflected in the share price.

Recent Results and Shareholding

Rossell India Ltd reported flat results in January 2070, consistent with the subdued trend in recent quarters. The company’s majority shareholding remains with promoters, maintaining control over strategic decisions and corporate governance.

Technical Indicators and Market Sentiment

From a technical perspective, Rossell India Ltd’s share price remains below all major moving averages, including short-term (5-day, 20-day) and long-term (50-day, 100-day, 200-day) averages. This persistent positioning below key technical levels reflects a lack of upward momentum and continued bearish sentiment among market participants.

The stock’s Mojo Score stands at 26.0, with a Mojo Grade of Strong Sell as of 8 Dec 2025, an upgrade from the previous Sell rating. This grading reflects the company’s weak long-term fundamentals and market performance. The Market Cap Grade is 4, indicating a relatively modest market capitalisation within its sector.

Sector and Peer Comparison

Within the FMCG sector, Rossell India Ltd’s valuation is discounted relative to its peers’ historical averages. While this may indicate potential value, it also reflects the market’s cautious stance given the company’s financial metrics and recent performance trends. The stock’s underperformance relative to the broader FMCG sector and indices such as the BSE500 highlights the challenges faced in maintaining competitive positioning.

Summary of Key Data Points

To summarise, Rossell India Ltd’s stock has declined to Rs.48.13, its lowest level in 52 weeks, amid a 35.72% fall over the past year. The company’s operating profits have contracted at a CAGR of -18.57% over five years, with a high Debt to EBITDA ratio of 3.54 times and modest profitability metrics including a 7.59% average ROE and 5.4% ROCE. Despite an 11.8% rise in profits over the last year, the share price has not reflected this growth, resulting in a PEG ratio of 1.1. The stock trades below all major moving averages and holds a Strong Sell Mojo Grade, underscoring ongoing challenges in the market and financial performance.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →