Stock Price Movement and Market Context
The stock touched Rs.33.2, its lowest level in the past year, after a sequence of declines that followed a period of underperformance relative to the broader market. Despite outperforming its sector by 1.38% on the day of the new low, Shiva Global Agro remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure.
In contrast, the Sensex, while experiencing a negative day with a fall of 463.56 points (-0.65%) to close at 83,030.93, remains 3.77% below its 52-week high of 86,159.02. The benchmark index has been on a three-week consecutive decline, losing 3.18% in that period, reflecting a cautious market environment.
Financial Performance and Profitability Concerns
Shiva Global Agro Industries Ltd’s financial metrics reveal challenges that have contributed to the stock’s decline. The company reported net sales of Rs.46.32 crores in the latest quarter, a sharp fall of 49.3% compared to the previous four-quarter average. This contraction in sales has been accompanied by a significant deterioration in profitability, with the quarterly profit after tax (PAT) plunging by 1608.0% to a loss of Rs.1.99 crores.
Operating profit to interest coverage ratio has also reached a low of -5.00 times, underscoring difficulties in managing financial obligations. The company’s debt to EBITDA ratio stands at a high 3.96 times, indicating a relatively low capacity to service debt from operational earnings.
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Long-Term Performance and Valuation Metrics
Over the past year, Shiva Global Agro Industries Ltd has delivered a total return of -19.53%, significantly underperforming the Sensex’s positive 8.36% return over the same period. This trend of underperformance extends over the last three years, with the stock consistently lagging behind the BSE500 benchmark.
The company’s return on equity (ROE) averages 5.09%, reflecting modest profitability relative to shareholders’ funds. Return on capital employed (ROCE) is reported at 4.8%, which, while low, contributes to a valuation that some may consider attractive. The enterprise value to capital employed ratio stands at 0.5, indicating the stock is trading at a discount compared to its peers’ historical valuations.
Interestingly, despite the stock’s negative return, the company’s profits have risen by 106.1% over the past year, resulting in a price/earnings to growth (PEG) ratio of 0.3. This suggests that the market valuation is not fully reflecting the recent improvement in profitability.
Shareholding and Sector Position
Shiva Global Agro Industries Ltd operates within the fertilisers industry and sector, with promoters holding the majority shareholding. The company’s market capitalisation grade is rated 4, indicating a micro-cap status. The Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell, upgraded from a previous Sell rating on 17 Nov 2025, reflecting a deteriorated outlook based on MarketsMOJO’s comprehensive analysis.
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Technical Indicators and Trend Analysis
The stock’s position below all major moving averages signals a sustained bearish trend. However, after three consecutive days of decline, Shiva Global Agro Industries Ltd has shown a slight gain, indicating a potential short-term pause in the downward momentum. Despite this, the overall trend remains subdued, with the stock price still significantly below its 52-week high of Rs.52.65.
In comparison, the Sensex’s 50-day moving average remains above its 200-day moving average, a technical indicator often interpreted as a longer-term bullish signal for the broader market, contrasting with the stock’s weaker technical positioning.
Summary of Key Financial Ratios
The company’s financial health is marked by a high debt burden relative to earnings, with a debt to EBITDA ratio of 3.96 times. The operating profit to interest coverage ratio at -5.00 times highlights the challenges in covering interest expenses from operational earnings. The average return on equity of 5.09% and ROCE of 4.8% reflect modest returns on capital, while the valuation metrics suggest the stock is trading at a discount relative to peers.
These factors collectively contribute to the current market valuation and the stock’s recent price behaviour.
Conclusion
Shiva Global Agro Industries Ltd’s fall to a 52-week low of Rs.33.2 reflects a combination of subdued financial performance, challenging profitability metrics, and technical weakness. While the stock has outperformed its sector on the day of the new low, it remains under pressure relative to broader market indices and its historical price levels. The company’s financial ratios and recent quarterly results provide context for the current valuation and market sentiment.
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