Stock Performance and Market Context
On 26 Nov 2025, Saboo Sodium Chloro’s share price declined by 1.14%, underperforming its sector by 1.71%. This marks the second consecutive day of losses, with the stock registering a cumulative return of -2.71% over this period. The current price of Rs.14.35 stands well below its 52-week high of Rs.31.62, reflecting a substantial contraction in value over the past year.
In contrast, the broader market has shown resilience. The Sensex, after a flat opening with a minor dip of 83.57 points, surged by 1,004.29 points to close at 85,507.73, representing a 1.09% gain. The index is trading close to its own 52-week high of 85,801.70, supported by bullish moving averages where the 50-day moving average remains above the 200-day moving average. The Sensex has recorded a 2.75% gain over the last three weeks, with mid-cap stocks leading the rally, as evidenced by the BSE Mid Cap index rising 1.13% today.
Technical Indicators and Moving Averages
Saboo Sodium Chloro is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This persistent position beneath all major moving averages signals a sustained downward momentum in the stock price. The gap between the current price and these averages highlights the stock’s relative weakness compared to its historical trading levels.
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Long-Term Performance and Financial Metrics
Over the past year, Saboo Sodium Chloro has recorded a return of -37.39%, a stark contrast to the Sensex’s 6.88% gain during the same period. This underperformance extends beyond the last year, with the stock also lagging behind the BSE500 index over the last three years and the past three months.
The company’s long-term financial indicators reveal some areas of concern. The average Return on Capital Employed (ROCE) stands at 5.77%, which is considered modest within the FMCG sector. Additionally, the company’s ability to service its debt is limited, with an average EBIT to interest ratio of 0.85, indicating that earnings before interest and tax are insufficient to comfortably cover interest expenses.
Recent Quarterly and Half-Year Highlights
Despite the subdued stock performance, Saboo Sodium Chloro reported some positive operational metrics in the recent September quarter. The company’s PBDIT (Profit Before Depreciation, Interest and Tax) reached Rs.3.29 crore, marking its highest quarterly figure. The operating profit to net sales ratio also peaked at 21.31%, reflecting improved efficiency in converting sales into operating profit.
Furthermore, the half-yearly debtors turnover ratio was recorded at 4.88 times, the highest in recent periods, suggesting an enhanced pace of receivables collection. However, these operational improvements have not translated into a recovery in the stock price, which continues to face downward pressure.
Valuation and Shareholding Pattern
Saboo Sodium Chloro’s valuation metrics indicate a very attractive enterprise value to capital employed ratio of 1.2, suggesting the stock is trading at a discount relative to its peers’ historical valuations. The company’s ROCE for the recent period stands at 4.1%, which, while modest, contributes to this valuation perspective.
The majority of the company’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics in the stock.
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Profitability Trends and Market Position
While the company has shown some operational strength in recent quarters, its overall profitability has contracted significantly. Over the past year, profits have declined by approximately 75.6%, a factor that has contributed to the stock’s subdued performance. This decline in profitability contrasts with the broader FMCG sector, which has generally maintained steadier earnings growth.
Saboo Sodium Chloro’s position within the FMCG sector remains challenged by these financial trends, as well as by the stock’s current trading levels well below key moving averages and its 52-week high.
Summary of Current Situation
In summary, Saboo Sodium Chloro’s stock has reached a new 52-week low of Rs.14.35 amid a market environment where the Sensex and mid-cap indices are advancing. The stock’s performance over the past year and longer periods has lagged behind major benchmarks, with financial metrics indicating modest returns on capital and limited debt servicing capacity. Although recent quarterly results show some operational improvements, these have not yet influenced the stock’s price trajectory, which remains under pressure.
The stock’s valuation metrics suggest it is trading at a discount relative to peers, but the significant decline in profits and sustained underperformance relative to the broader market continue to weigh on investor sentiment.
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