Samrat Forgings Ltd Falls to 52-Week Low of Rs.200.1 Amidst Continued Downtrend

Recent Price Movement and Market Context

The stock recorded an intraday low of Rs.200.1, slipping 2.03% on the day and underperforming its sector by 1.74%. This marks the second consecutive day of losses, with the stock declining by 6.93% over this period. Trading below all key moving averages – including the 5-day, 20-day, 50-day, 100-day, and 200-day averages – the share price reflects sustained bearish sentiment.

In contrast, the broader market showed relative stability. The Nifty index closed marginally higher at 25,050.00, up 0.01%, while the S&P BSE Metal index reached a new 52-week high. Mega-cap stocks led the market gains, highlighting a divergence between large-cap strength and the pressures faced by smaller industrial stocks such as Samrat Forgings.

Long-Term Performance and Comparative Analysis

Over the past year, Samrat Forgings has delivered a negative return of 35.45%, significantly lagging behind the Sensex, which posted an 8.61% gain during the same period. The stock’s 52-week high was Rs.362.9, underscoring the extent of the recent decline. This underperformance extends beyond the last year, with the company also trailing the BSE500 index over the last three years, one year, and three months.

Financial Health and Credit Metrics

Samrat Forgings is classified as a high debt company with weak long-term fundamental strength. The company’s ability to service its debt remains constrained, as reflected by a poor average EBIT to interest ratio of 1.89. This ratio indicates limited earnings before interest and taxes relative to interest expenses, signalling potential stress in meeting financial obligations.

Operating profit growth has been modest, with an annualised rate of 15.50% over the last five years, which is considered below par for the sector. This slow growth trajectory has contributed to the subdued investor sentiment and the stock’s declining valuation.

Recent Quarterly and Nine-Month Results

The company’s latest financial results further illustrate the challenges faced. For the nine months ended September 2025, the profit after tax (PAT) stood at Rs.2.59 crore, representing a decline of 31.84% compared to the previous period. The quarterly PBDIT (profit before depreciation, interest, and taxes) was reported at Rs.3.69 crore, marking the lowest level in recent quarters.

Additionally, the operating profit to net sales ratio for the quarter fell to 7.12%, the lowest recorded in recent periods. These figures highlight the pressure on margins and profitability, which have weighed on the stock’s performance.

Sector and Market Positioning

Within the Castings & Forgings sector, Samrat Forgings’ performance contrasts with some peers who have shown relative resilience. The company’s Mojo Score stands at 4.0 with a Mojo Grade of Strong Sell, upgraded from a Sell rating on 21 July 2025. The Market Cap Grade is 4, reflecting the company’s smaller market capitalisation and associated risks.

The stock’s recent underperformance relative to the sector and broader indices suggests that it is facing sector-specific headwinds as well as company-specific issues that have contributed to its current valuation levels.

Technical Indicators and Trading Patterns

From a technical perspective, the stock’s position below all major moving averages signals a bearish trend. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price, indicating sustained selling pressure. This technical setup often reflects a lack of short-term momentum and can deter buying interest until a reversal pattern emerges.

The stock’s consecutive two-day decline and the 6.93% loss over this period reinforce the downward momentum. Such patterns often reflect cautious sentiment among traders and investors, particularly when accompanied by weak financial results and credit metrics.

Summary of Key Metrics

To summarise, Samrat Forgings Ltd’s key metrics as of 27 January 2026 are:

• New 52-week low price: Rs.200.1


• Day’s percentage change: -2.03%


• One-year stock return: -35.45%


• Sensex one-year return for comparison: +8.61%


• EBIT to interest ratio (average): 1.89


• Operating profit growth (5-year annualised): 15.50%


• PAT (9 months ended Sep 2025): Rs.2.59 crore, down 31.84%


• Quarterly PBDIT: Rs.3.69 crore, lowest recent level


• Operating profit to net sales (quarterly): 7.12%, lowest recent level


• Mojo Score: 4.0 (Strong Sell), upgraded from Sell on 21 July 2025

Market Environment and Broader Indices

While Samrat Forgings has struggled, the broader market environment has shown mixed signals. The Nifty index remains just below its 50-day moving average but above its 200-day moving average, suggesting a cautiously optimistic medium-term outlook for the market. The S&P BSE Metal index’s new 52-week high indicates strength in the metals sector, contrasting with the challenges faced by individual companies such as Samrat Forgings.

Overall, the stock’s recent price action and fundamental indicators reflect a period of subdued performance and valuation pressures, consistent with its classification as a high debt company with limited growth momentum.

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