Stock Performance and Market Context
The stock’s fall to Rs.140.35 represents a substantial drop from its 52-week high of Rs.275.20, reflecting a year-long downward trajectory. Over the past 12 months, S H Kelkar & Company Ltd has delivered a negative return of -26.59%, considerably underperforming the Sensex, which has gained 8.41% in the same period. This divergence highlights the stock’s relative weakness within the broader market environment.
Today, despite the Sensex recovering from an initial dip to close 0.2% higher at 81,701.18, S H Kelkar & Co. remained under pressure. The stock outperformed its sector by a marginal 0.41% but continues to trade below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.
Financial Metrics and Recent Results
The company’s recent quarterly results have contributed to the subdued sentiment. The latest reported PAT stood at Rs.8.62 crores, reflecting a sharp decline of 72.3% compared to the previous four-quarter average. This steep fall in profitability has weighed heavily on investor confidence.
Return on Capital Employed (ROCE) for the half-year period is at a low 7.42%, indicating limited efficiency in generating returns from capital invested. Additionally, the operating profit to interest coverage ratio has dropped to 3.79 times, the lowest in recent quarters, suggesting tighter financial cushioning against interest obligations.
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Long-Term Growth and Valuation Considerations
Over the last five years, the company’s operating profit has grown at an annual rate of just 5.43%, a modest pace that has not translated into sustained share price appreciation. The stock’s Mojo Score currently stands at 28.0, with a Mojo Grade of Strong Sell, downgraded from Sell as of 12 Jan 2026. This grading reflects the company’s challenges in delivering robust growth and profitability.
Despite these concerns, the company maintains a relatively low average debt-to-equity ratio of 0.50 times, which provides some financial stability. Its enterprise value to capital employed ratio is 1.3, suggesting that the stock is trading at a discount relative to its peers’ historical valuations. However, this valuation advantage has not been sufficient to offset the impact of declining profits, which have fallen by 33.9% over the past year.
Comparative Performance and Sector Dynamics
S H Kelkar & Company Ltd’s underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months. This persistent underperformance contrasts with the broader Specialty Chemicals sector, where some peers have managed to sustain better growth and valuation metrics.
Today, other indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows, indicating sectoral pressures in certain segments. Meanwhile, mega-cap stocks led the market recovery, with the Sensex’s 50-day moving average trading above its 200-day moving average, signalling a cautiously optimistic broader market trend despite pockets of weakness.
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Shareholding and Corporate Structure
The majority shareholding in S H Kelkar & Company Ltd remains with the promoters, providing a stable ownership base. This concentrated shareholding structure often influences strategic decisions and long-term company direction.
While the stock’s current valuation metrics suggest some attractiveness relative to peers, the combination of subdued profit growth, recent earnings declines, and technical weakness has culminated in the stock reaching its lowest price point in a year.
Summary of Key Metrics
To summarise, the stock’s key performance indicators as of 27 Jan 2026 include:
- New 52-week low price: Rs.140.35
- 52-week high price: Rs.275.20
- One-year return: -26.59%
- Latest quarterly PAT: Rs.8.62 crores (-72.3% vs previous 4Q average)
- ROCE (Half Year): 7.42%
- Operating profit to interest coverage (Quarterly): 3.79 times
- Debt to equity ratio (average): 0.50 times
- Mojo Score: 28.0 (Strong Sell, downgraded from Sell on 12 Jan 2026)
The stock’s performance and valuation reflect a complex interplay of factors, including earnings contraction, subdued growth rates, and technical pressures. These elements have collectively contributed to the stock’s decline to its current 52-week low.
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