Samrat Forgings Ltd Stock Hits 52-Week Low at Rs.194.95

Stock Price Movement and Market Context

On 2 Feb 2026, Samrat Forgings Ltd’s share price declined by 3.01%, opening and trading at Rs.194.95, which represents the lowest level the stock has seen in the past year. This drop was sharper than the sector’s performance, underperforming by 4.04% on the day. The stock’s trading activity was notably erratic, having missed trading on one day in the last 20 sessions, indicating some volatility or liquidity concerns.

Technical indicators show the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. This contrasts with the broader market, where the Sensex recovered strongly after a negative start, gaining 0.68% to trade at 81,272.90 points. The Sensex’s 50-day moving average remains above its 200-day average, suggesting a generally positive market trend, led by mega-cap stocks, which Samrat Forgings has not been able to capitalise on.

Over the past year, Samrat Forgings Ltd’s stock has declined by 30.42%, significantly underperforming the Sensex, which posted a 4.89% gain over the same period. The stock’s 52-week high was Rs.362.90, highlighting the extent of the recent decline.

Financial Performance and Fundamental Assessment

Samrat Forgings Ltd’s financial metrics continue to reflect pressures on its business. The company’s long-term growth has been modest, with operating profit growing at an annual rate of 15.50% over the last five years. However, this growth rate has not translated into strong profitability or debt servicing capacity.

The company’s ability to meet interest obligations remains weak, with an average EBIT to interest ratio of just 1.89, indicating limited cushion to cover interest expenses. This is a critical factor contributing to the stock’s current valuation and rating.

Recent quarterly results further underline the challenges faced. The Profit After Tax (PAT) for the nine months ended September 2025 stood at Rs.2.59 crore, reflecting a decline of 31.84% compared to the previous period. The PBDIT for the quarter was at a low of Rs.3.69 crore, while the operating profit to net sales ratio dropped to 7.12%, marking the lowest levels recorded in recent quarters.

These figures highlight a subdued near-term performance alongside the longer-term trend of underwhelming returns. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, reinforcing the persistent challenges in generating shareholder value.

Sector and Industry Positioning

Operating within the Castings & Forgings sector, Samrat Forgings Ltd faces competitive pressures and market dynamics that have not favoured its stock performance. The sector itself has seen mixed results, with some companies benefiting from cyclical demand and others struggling with cost pressures and subdued order flows. Samrat Forgings’ relative underperformance against sector peers is evident in its stock price trajectory and financial ratios.

The company’s market capitalisation grade stands at 4, reflecting its smaller size and limited market presence compared to larger peers. This factor, combined with its financial metrics, has contributed to a recent downgrade in its Mojo Grade from Sell to Strong Sell as of 21 Jul 2025, with a current Mojo Score of 4.0.

Trading Patterns and Investor Sentiment

The stock’s recent trading pattern has been characterised by a lack of range, with the price opening and trading at Rs.194.95 today without significant intraday fluctuations. This may indicate subdued trading interest or a consolidation phase at these lower levels. The erratic trading noted over the past month, including a day without any trades, suggests limited liquidity and investor engagement.

Despite the broader market’s positive momentum, led by mega-cap stocks and a recovering Sensex, Samrat Forgings Ltd has not participated in this rally. Its persistent underperformance relative to both the sector and the benchmark indices reflects ongoing concerns about its financial health and growth prospects.

Summary of Key Metrics

To summarise, the stock’s key data points as of 2 Feb 2026 are:

• New 52-week low price: Rs.194.95
• Day’s price change: -3.01%
• One-year stock return: -30.42%
• Sensex one-year return: +4.89%
• Operating profit growth (5 years CAGR): 15.50%
• PAT (9 months ended Sep 2025): Rs.2.59 crore, down 31.84%
• PBDIT (quarterly low): Rs.3.69 crore
• Operating profit to net sales (quarterly low): 7.12%
• EBIT to interest ratio (average): 1.89
• Mojo Grade: Strong Sell (upgraded from Sell on 21 Jul 2025)
• Market Cap Grade: 4

These figures collectively illustrate the pressures on Samrat Forgings Ltd’s stock and the challenges it faces in regaining investor confidence and market standing.

Conclusion

Samrat Forgings Ltd’s fall to a 52-week low of Rs.194.95 underscores a period of sustained underperformance amid financial and market headwinds. The stock’s decline contrasts with broader market gains and sector movements, reflecting company-specific factors such as weak profitability metrics, limited debt servicing capacity, and subdued growth rates. The downgrade to a Strong Sell rating and the stock’s position below all major moving averages further highlight the cautious stance reflected in its current valuation.

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