Samrat Pharmachem Ltd Falls to 52-Week Low of Rs.195.1 Amidst Continued Underperformance

Stock Price Movement and Market Context

On 30 Jan 2026, Samrat Pharmachem Ltd recorded an intraday low of Rs.195.1, a drop of 4.34% from its previous levels. Despite an intraday high of Rs.210, the stock closed near its low point, underperforming its sector by 0.27%. The stock has shown a modest recovery over the last two days, gaining 1.49% cumulatively, yet remains firmly below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling persistent bearish momentum.

In contrast, the broader market benchmark, the Sensex, opened lower at 81,947.31, down 0.75%, but has since recovered slightly to trade at 82,370.75, a decline of 0.24%. The Sensex remains 4.6% shy of its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, indicating a generally positive medium-term market trend. Against this backdrop, Samrat Pharmachem’s performance stands out for its relative weakness.

Financial Performance and Valuation Metrics

Samrat Pharmachem’s financial results have been subdued, contributing to the stock’s decline. The company reported flat results in the quarter ending September 2025, with operating cash flow at a low of Rs. -10.09 crores and PBDIT for the quarter at Rs. -0.36 crores. The operating profit to net sales ratio also hit a low of -0.46%, underscoring the pressure on profitability.

Return on equity (ROE) stands at a modest 2.2%, while the stock’s price-to-book value ratio is 0.9, suggesting that the market values the company roughly in line with its book value. Despite this, the valuation appears expensive relative to the company’s weak long-term fundamentals and deteriorating profit trends. Over the past year, Samrat Pharmachem’s profits have declined by 75.9%, a stark contrast to the Sensex’s positive 7.31% return over the same period.

Long-Term Performance and Market Standing

Samrat Pharmachem has consistently underperformed its benchmark indices over the last three years. The stock has generated a negative return of 43.67% in the past year alone, while the BSE500 and Sensex indices have delivered positive returns. This persistent underperformance is reflected in the company’s Mojo Score of 17.0 and a Mojo Grade of Strong Sell, which was downgraded from Sell on 19 Aug 2025.

The company’s market capitalisation grade is rated at 4, indicating a relatively small market cap within its sector. The stock’s 52-week high was Rs.425, highlighting the extent of the decline to the current low of Rs.195.1. The majority shareholding remains with the promoters, maintaining control over corporate decisions despite the challenging market conditions.

Technical Indicators and Trading Patterns

Technically, the stock’s position below all major moving averages signals a bearish trend. The failure to sustain levels above the 5-day and 20-day averages suggests limited short-term momentum. The intraday volatility, with a high of Rs.210 and a low of Rs.195.1, indicates investor uncertainty and a lack of strong buying interest at higher levels.

While the stock has recorded a slight gain over the last two days, this has not been sufficient to reverse the broader downtrend. The day’s price change of 0.51% is modest and does not offset the cumulative losses experienced over the year.

Sector and Industry Context

Operating within the Pharmaceuticals & Biotechnology sector, Samrat Pharmachem faces stiff competition and sectoral pressures. While the broader sector has shown resilience, the company’s financial metrics and stock performance lag behind peers. The stock’s valuation relative to historical averages of its peers suggests that the market is pricing in the company’s current challenges.

The company’s weak long-term fundamental strength, as indicated by its financial results and profitability ratios, has contributed to the downgrade in its Mojo Grade and the strong sell rating. This reflects a cautious stance on the stock’s outlook based on current data.

Summary of Key Metrics

To summarise, Samrat Pharmachem Ltd’s stock has declined to Rs.195.1, its lowest level in 52 weeks, reflecting a 43.67% loss over the past year. The company’s operating cash flow and profitability ratios remain under pressure, with operating cash flow at Rs. -10.09 crores and PBDIT at Rs. -0.36 crores in the latest quarter. The stock trades below all major moving averages and has been downgraded to a Strong Sell with a Mojo Score of 17.0.

Despite a slight uptick in the last two days, the stock’s performance continues to trail the broader market and its sector peers, underscoring the challenges faced by the company in maintaining investor confidence and financial stability.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →