Stock Price Movement and Market Context
On 23 Jan 2026, S H Kelkar & Company Ltd’s shares touched an intraday low of Rs 142.25, marking a 4.43% drop for the day and closing with a 4.27% decline. This underperformance was sharper than the Specialty Chemicals sector, which the stock lagged by 2.54%. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
The broader market also faced pressure, with the Nifty index closing at 25,048.65, down 241.25 points or 0.95%. Notably, the Nifty Realty index also hit a 52-week low on the same day, while all market capitalisation segments experienced declines. Large-cap stocks were particularly weak, with the Nifty Next 50 index falling 1.97%. Despite the Nifty trading below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed technical signals at the index level.
Long-Term and Recent Performance Metrics
Over the past year, S H Kelkar & Company Ltd has delivered a negative return of 33.00%, significantly underperforming the Sensex, which posted a 6.56% gain over the same period. The stock’s 52-week high was Rs 275.5, highlighting the extent of the decline from its peak.
Financially, the company’s operating profit has grown at a modest annual rate of 5.43% over the last five years, which is considered subdued within the Specialty Chemicals sector. The most recent quarterly results for September 2025 revealed a sharp contraction in profitability, with the PAT falling to Rs 8.62 crore, a decline of 72.3% compared to the previous four-quarter average. This significant drop in earnings has contributed to the stock’s weak performance.
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Profitability and Efficiency Indicators
The company’s return on capital employed (ROCE) for the half-year ended was recorded at 7.42%, which is among the lowest in recent periods. Additionally, the operating profit to interest coverage ratio for the quarter stood at 3.79 times, indicating limited buffer to meet interest obligations compared to historical levels.
Despite these challenges, the company maintains a relatively low average debt-to-equity ratio of 0.50 times, which suggests a conservative capital structure. The enterprise value to capital employed ratio is 1.3, reflecting an attractive valuation relative to capital invested in the business. However, these valuation metrics have not translated into positive returns, as the stock has continued to decline.
Comparative Performance and Market Position
In addition to underperforming the Sensex, S H Kelkar & Company Ltd has lagged behind the BSE500 index over the last three years, one year, and three months. This consistent underperformance across multiple time frames highlights the stock’s challenges in delivering shareholder value relative to broader market benchmarks.
The company operates within the Specialty Chemicals sector, which has seen mixed performance recently. While some peers have maintained or improved their valuations, S H Kelkar & Company Ltd’s stock is trading at a discount compared to the average historical valuations of its sector counterparts.
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Shareholding and Market Capitalisation
The majority shareholding in S H Kelkar & Company Ltd remains with the promoters, indicating stable ownership control. The company’s market capitalisation grade is rated at 3, reflecting its mid-tier size within the market spectrum.
Its Mojo Score currently stands at 28.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 12 Jan 2026. This grading reflects the stock’s deteriorated fundamentals and weak price momentum.
Summary of Key Financial and Market Indicators
To summarise, S H Kelkar & Company Ltd’s stock has reached a critical price level near its 52-week low of Rs 141.5, closing at Rs 142.25 on 23 Jan 2026. The stock’s underperformance is underscored by a 33.00% negative return over the past year, a significant drop in quarterly PAT by 72.3%, and subdued long-term operating profit growth of 5.43% annually. While the company maintains a conservative debt profile and attractive valuation multiples, these factors have not offset the impact of declining profitability and market sentiment.
The stock’s position below all major moving averages and its relative weakness compared to sector and market indices further illustrate the challenges faced by S H Kelkar & Company Ltd in recent periods.
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