Saurashtra Cement Declines 8.40%: Four-Day Slide Amid Margin Pressures and 52-Week Lows

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Saurashtra Cement Ltd’s stock declined sharply by 8.40% over the week ending 13 February 2026, closing at Rs.66.78 from Rs.72.90. This underperformance contrasted with the Sensex’s modest 0.54% fall, highlighting the stock’s sustained weakness amid margin pressures, fresh 52-week lows, and deteriorating financial metrics.

Key Events This Week

Feb 09: Q3 FY26 results reveal margin pressures despite volume recovery

Feb 12: Stock hits 52-week low of Rs.67 amid continued downtrend

Feb 13: Further decline to new 52-week low of Rs.66.64, extending losses

Week Close: Rs.66.78, down 8.40% for the week

Week Open

Rs.72.90

Week Close

Rs.66.78

-8.40%

Week Low

Rs.66.64

Sensex Change

-0.54%

Feb 09: Q3 FY26 Results Highlight Margin Pressures Despite Volume Recovery

Saurashtra Cement Ltd opened the week on a positive note, gaining 1.30% to close at Rs.73.85. The company reported its Q3 FY26 results, which showed some volume recovery but persistent margin pressures. While volumes improved, profitability remained under strain, reflecting in subdued earnings performance. The stock’s modest gain on this day was in line with the Sensex’s 1.04% rise, indicating cautious optimism among investors despite underlying challenges.

Feb 10-11: Profit Taking and Technical Weakness Begin to Surface

The stock reversed course on 10 February, falling 1.68% to Rs.72.61 amid increased selling pressure and higher volumes of 6,977 shares. This decline came despite the Sensex advancing 0.25%, signalling early signs of divergence. The downtrend continued on 11 February with a further 1.35% drop to Rs.71.63, even as the Sensex eked out a marginal 0.13% gain. These two sessions marked the start of a weakening trend, with the stock beginning to trade below short-term moving averages.

Feb 12: Stock Hits 52-Week Low of Rs.67 on Heavy Volume

On 12 February, Saurashtra Cement Ltd’s share price plunged 3.85% to Rs.68.87, hitting a fresh 52-week low of Rs.67 during intraday trading. This sharp decline occurred on exceptionally high volume of 1,42,265 shares, underscoring strong selling interest. The day’s loss was significantly larger than the Sensex’s 0.56% fall, highlighting the stock’s underperformance. The fresh low reflected mounting concerns over the company’s deteriorating profitability, with Q3 results showing a loss before tax of Rs.13.28 crore, down 265.4% from the prior four-quarter average.

Feb 13: Continued Downtrend Extends Losses to 8.40% for the Week

The downtrend intensified on 13 February as the stock fell another 3.03% to close at Rs.66.78, marking a new 52-week low of Rs.66.64 intraday. The four-day losing streak resulted in a cumulative decline of 9.28%, significantly underperforming the Sensex’s 1.40% drop on the same day. The stock’s technical position remained weak, trading below all key moving averages, signalling sustained bearish momentum. Despite the broader market’s resilience, Saurashtra Cement Ltd’s share price reflected ongoing concerns about profitability and operational challenges.

Weekly Price Performance: Stock vs Sensex

Date	Stock Price	Day Change	Sensex	Day Change
2026-02-09	Rs.73.85	+1.30%	37,113.23	+1.04%
2026-02-10	Rs.72.61	-1.68%	37,207.34	+0.25%
2026-02-11	Rs.71.63	-1.35%	37,256.72	+0.13%
2026-02-12	Rs.68.87	-3.85%	37,049.40	-0.56%
2026-02-13	Rs.66.78	-3.03%	36,532.48	-1.40%

Key Takeaways from the Week

1. Persistent Margin and Profitability Challenges: Despite some volume recovery noted in Q3 FY26, Saurashtra Cement Ltd continues to face margin pressures, with quarterly profit before tax plunging to a loss of Rs.13.28 crore, down 265.4% from the prior four-quarter average. This has weighed heavily on investor sentiment and share price performance.

2. Technical Weakness and New 52-Week Lows: The stock breached critical support levels, hitting fresh 52-week lows on 12 and 13 February at Rs.67 and Rs.66.64 respectively. Trading below all major moving averages signals sustained bearish momentum and limited near-term technical support.

3. Disconnection Between Profit Growth and Share Price: While the stock price has declined by nearly 24% over the past year, the company’s profits have increased by 472%, resulting in a low PEG ratio of 0.1. This divergence suggests market scepticism about the sustainability of earnings growth or other underlying risks.

Conclusion

Saurashtra Cement Ltd’s performance this week underscores a challenging phase marked by declining profitability, technical weakness, and investor caution. The stock’s 8.40% weekly fall significantly outpaced the Sensex’s 0.54% decline, reflecting company-specific concerns amid a mixed broader market backdrop. Despite a conservative capital structure and some profit growth, the stock remains under pressure, trading near 52-week lows and below all key moving averages. The downgrade to a Sell Mojo Grade further highlights the cautious stance on this micro-cap. Investors should closely monitor upcoming financial updates and technical signals to assess any potential reversal or continued weakness.

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