Recent Price Movement and Market Context
On 25 Nov 2025, Sadhana Nitro Chem’s share price touched Rs.5.88, the lowest level recorded in the past year. This price point represents a sharp contrast to its 52-week high of Rs.58.05, highlighting a steep depreciation of approximately 89.9% over the period. The stock has been on a losing streak for four consecutive trading sessions, cumulatively returning -18.33% during this span.
In comparison, the broader market has shown resilience. The Sensex opened 108.22 points higher and was trading at 85,009.75, up 0.13% on the day. The benchmark index remains within 0.93% of its own 52-week high of 85,801.70 and is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks have also contributed positively, with the BSE Mid Cap index gaining 0.16%.
Despite this positive market environment, Sadhana Nitro Chem’s stock has lagged, underperforming its sector by 4.91% on the day.
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Technical Indicators and Moving Averages
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates a persistent bearish trend and suggests that the stock has not found technical support in the short, medium, or long term. Such a pattern often reflects sustained selling pressure and a lack of positive momentum.
Financial Performance and Profitability Metrics
Sadhana Nitro Chem’s financial results have shown considerable strain. The company reported operating losses, which have contributed to a weak long-term fundamental profile. The debt servicing capacity is limited, with a Debt to EBITDA ratio of 10.55 times, signalling elevated leverage relative to earnings before interest, tax, depreciation, and amortisation.
Profitability metrics further illustrate the challenges faced. The average Return on Equity (ROE) stands at 3.78%, indicating modest returns generated on shareholders’ funds. The latest half-year figures reveal a Return on Capital Employed (ROCE) of -0.34%, underscoring the negative returns on capital invested in the business.
Net sales for the most recent six-month period amounted to Rs.30.80 crores, reflecting a contraction of 61.00% compared to prior periods. The quarterly Profit After Tax (PAT) was reported at a loss of Rs.25.55 crores, representing a decline of over 2200% relative to the previous four-quarter average. Earnings per share (EPS) have also shown a significant fall, with a reduction exceeding 2100%.
Shareholder and Promoter Activity
Promoter confidence appears to have waned, as evidenced by a reduction in promoter shareholding by 26.76% over the previous quarter. Currently, promoters hold 29.97% of the company’s equity. Such a decrease in promoter stake may be interpreted as a cautious stance regarding the company’s near-term prospects.
Long-Term Performance and Market Comparison
Over the past year, Sadhana Nitro Chem’s stock has generated a return of -87.08%, markedly underperforming the Sensex, which recorded a positive return of 6.07% during the same period. The stock has also consistently underperformed the BSE500 index across the last three annual periods, highlighting a persistent divergence from broader market trends.
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Risk Profile and Valuation Considerations
The stock’s risk profile is elevated, with trading levels reflecting a discount relative to its historical valuations. The substantial decline in profits, exceeding 1000% over the past year, has contributed to this risk perception. The negative operating profit scenario further compounds the challenges faced by the company in stabilising its financial position.
Summary of Key Concerns
Sadhana Nitro Chem’s recent performance is characterised by a combination of weak financial results, high leverage, and diminished promoter confidence. The stock’s fall to Rs.5.88, its lowest in 52 weeks, underscores the market’s cautious stance amid these factors. While the broader market and sector indices have shown resilience, the company’s share price continues to reflect the impact of its financial and operational difficulties.
Conclusion
The 52-week low reached by Sadhana Nitro Chem highlights the challenges the company is currently navigating. The stock’s position below all major moving averages, coupled with negative profitability metrics and reduced promoter holdings, paints a picture of ongoing headwinds. Investors and market participants will be closely monitoring future developments and financial disclosures to assess any changes in the company’s trajectory.
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