Stock Price Movement and Market Context
On 2 Jan 2026, Samrat Forgings Ltd opened and traded steadily at Rs.226, registering a day decline of 1.74%. This price represents the lowest level the stock has seen in the past year, down from its 52-week high of Rs.368.50. Over the last two trading sessions, the stock has fallen by 5.08%, underperforming its sector by 2.99% on the day.
The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. This technical positioning indicates that short- and long-term momentum remains weak.
In contrast, the broader market has shown resilience. The Sensex rose by 0.48% to close at 85,599.27, just 0.65% shy of its 52-week high of 86,159.02. The Sensex is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, reflecting a bullish market environment. Mid-cap stocks led the gains, with the BSE Mid Cap index advancing 0.71%.
Financial Performance and Fundamental Assessment
Samrat Forgings Ltd’s financial results have contributed to the subdued investor sentiment. The company reported a negative trend in its latest six-month performance, with a Profit After Tax (PAT) of Rs.1.86 crore, declining by 41.14% compared to previous periods. Quarterly Profit Before Depreciation, Interest and Taxes (PBDIT) stood at Rs.3.69 crore, marking the lowest level recorded recently.
Operating profit margins have also contracted, with the operating profit to net sales ratio falling to 7.12% in the latest quarter, the lowest in recent times. These figures highlight challenges in maintaining profitability and controlling costs within the current business environment.
Over the past five years, the company’s operating profit has grown at an annualised rate of 15.50%, which is modest given the sector’s competitive landscape. The company’s ability to service its debt remains constrained, with an average EBIT to interest coverage ratio of 1.89, indicating limited cushion to meet interest obligations comfortably.
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Long-Term and Relative Performance
Samrat Forgings Ltd has underperformed significantly over the last year, delivering a negative return of 34.68%, while the Sensex gained 7.08% over the same period. This underperformance extends to the medium term as well, with the stock lagging the BSE500 index over the past three years, one year, and three months.
The company’s market capitalisation grade stands at 4, reflecting its relatively modest size within the sector. Its Mojo Score is 4.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 21 Jul 2025, underscoring the cautious stance on the stock’s outlook based on fundamental and technical factors.
Shareholding and Sector Positioning
The majority shareholding in Samrat Forgings Ltd remains with the promoters, indicating concentrated ownership. The company operates within the Castings & Forgings industry, a sector that has seen mixed performance amid evolving demand and supply dynamics.
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Summary of Key Metrics
To summarise, Samrat Forgings Ltd’s stock has reached a new 52-week low of Rs.226, reflecting ongoing pressures from subdued financial results and technical weakness. The stock’s decline contrasts with the broader market’s positive trajectory, with the Sensex nearing its own 52-week high.
Financial indicators such as declining PAT, low operating profit margins, and limited debt servicing capacity contribute to the cautious assessment of the company’s current standing. The stock’s Mojo Grade of Strong Sell and a Mojo Score of 4.0 further highlight the challenges faced by the company in the current market environment.
While the company remains under the control of its promoters, its relative underperformance against sector and market benchmarks over multiple time frames underscores the difficulties it has encountered in delivering shareholder value.
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