Recent Price Movement and Market Context
On 21 Jan 2026, Sandu Pharmaceuticals Ltd’s share price touched an intraday low of Rs.35.11, representing a 5.24% drop during the trading session. The stock opened with a gap down of 2.83% and has declined for three consecutive days, accumulating a negative return of 9.14% over this period. This underperformance is notable against the Pharmaceuticals & Biotechnology sector, where Sandu Pharma lagged by 0.82% today.
The broader market environment has also been subdued. The Sensex opened 385.82 points lower and is currently trading at 81,791.54, down 0.47%. The index has been on a three-week losing streak, shedding 4.63% in total. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying support despite recent weakness.
Sandu Pharmaceuticals is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum in the stock price.
Financial Performance and Valuation Metrics
Over the past year, Sandu Pharmaceuticals has delivered a return of -33.54%, significantly underperforming the Sensex, which posted a positive 7.83% return in the same period. The stock’s 52-week high was Rs.62.80, highlighting the extent of the decline.
The company’s long-term financial indicators reveal modest growth and profitability. Net sales have increased at an annualised rate of 4.69% over the last five years, while operating profit has grown at 17.92% annually. However, the average Return on Equity (ROE) remains low at 3.73%, reflecting limited efficiency in generating shareholder returns.
Debt servicing capacity is also a concern, with an average EBIT to interest ratio of 1.92, indicating relatively weak coverage of interest expenses by operating earnings. The latest quarterly results for March 2025 showed net sales at Rs.14.07 crore, the lowest in recent periods, underscoring the subdued revenue environment.
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Comparative Performance and Market Position
Sandu Pharmaceuticals has consistently underperformed its benchmark indices and peer group over the last three years. The stock has generated negative returns in each of the past three annual periods relative to the BSE500 index. This trend highlights persistent challenges in maintaining competitive growth and market share within the Pharmaceuticals & Biotechnology sector.
Despite the subdued price performance, the stock’s valuation metrics suggest some degree of attractiveness. The Price to Book Value ratio stands at 0.9, indicating that the stock is trading at a discount relative to its book value. This valuation is lower than the average historical valuations of its peers, reflecting market caution.
Profitability has shown some improvement, with profits rising by 10.9% over the past year. However, the Price/Earnings to Growth (PEG) ratio is 2.2, signalling that earnings growth may not be sufficient to justify current valuations fully.
Shareholding and Market Sentiment
The majority of Sandu Pharmaceuticals’ shares are held by non-institutional investors, which may contribute to higher volatility and less predictable trading patterns. The company’s Mojo Score stands at 23.0, with a Mojo Grade of Strong Sell as of 19 Sep 2024, downgraded from Sell. The Market Cap Grade is 4, reflecting a relatively modest market capitalisation within its sector.
On the day of the new 52-week low, the stock’s day change was -3.13%, further emphasising the downward pressure on the share price.
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Summary of Key Metrics
To summarise, Sandu Pharmaceuticals Ltd’s recent decline to Rs.35.11 marks a significant technical low point, reflecting a combination of subdued financial performance, valuation pressures, and broader market weakness. The stock’s long-term growth rates remain modest, with net sales and operating profit expanding at single-digit and mid-teen annual rates respectively. Profitability metrics such as ROE and EBIT to interest coverage ratio remain below industry averages, contributing to the cautious market stance.
While the stock trades at a discount to book value and has seen some profit growth, the overall market sentiment remains cautious, as evidenced by the downgrade to a Strong Sell grade and the sustained price weakness over recent months.
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