Stock Price Movement and Market Context
On 21 Nov 2025, Shivalik Rasayan's share price touched Rs.404, the lowest level recorded in the past 52 weeks. This decline comes after two consecutive days of losses, with the stock registering a cumulative return of -2.49% during this period. The trading range on the day was narrow, confined to Rs.1.85, indicating limited volatility despite the downward trend.
The stock's performance today lagged behind its sector by 0.46%, signalling relative weakness within the Pesticides & Agrochemicals industry. Furthermore, Shivalik Rasayan is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the prevailing bearish momentum.
In contrast, the broader market index, Sensex, opened lower at 85,347.40 points, down 285.28 points or 0.33%, and was trading at 85,390.15 points (-0.28%) during the same session. Notably, Sensex remains close to its 52-week high of 85,801.70, just 0.48% away, and is positioned above its 50-day and 200-day moving averages, reflecting a generally bullish market environment.
Financial Performance and Growth Trends
Shivalik Rasayan's financial results over recent years reveal a pattern of subdued growth and profitability. The company’s net sales have expanded at an annual rate of 12.50% over the last five years, while operating profit has shown minimal change, growing at a rate of just 0.55% annually during the same period. This slow growth trajectory has contributed to the stock's underwhelming market performance.
Quarterly results for September 2025 further illustrate the challenges faced by the company. The profit after tax (PAT) stood at Rs.3.05 crores, reflecting a decline of 23.9% compared to the previous corresponding quarter. This contraction in quarterly earnings adds to the pressure on the stock price and investor confidence.
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Profitability and Efficiency Metrics
The company’s return on equity (ROE) averaged 6.12%, indicating modest profitability relative to shareholders’ funds. This level of ROE is considered low within the sector, suggesting limited efficiency in generating profits from equity capital. Despite this, Shivalik Rasayan maintains a low average debt-to-equity ratio of 0.04 times, reflecting a conservative capital structure with minimal leverage.
Valuation metrics show the stock trading at a price-to-book value of 1.1, which is lower than the average historical valuations of its peers. This discount may reflect the market’s cautious stance given the company’s financial performance and growth outlook. The return on equity for the most recent period stands at 2.4%, further highlighting the subdued profitability environment.
Comparative Performance and Market Position
Over the past year, Shivalik Rasayan’s stock has generated a return of -23.58%, significantly underperforming the Sensex, which recorded a positive return of 10.67% during the same timeframe. This underperformance extends beyond the last year, with the stock trailing the BSE500 index in each of the previous three annual periods.
Domestic mutual funds hold no stake in Shivalik Rasayan, a notable point given their capacity for detailed company research. This absence of institutional ownership may reflect a cautious approach towards the stock’s prospects or valuation at current price levels.
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Sector and Industry Considerations
Operating within the Pesticides & Agrochemicals sector, Shivalik Rasayan faces competitive pressures and sector-specific dynamics that influence its market standing. The stock’s 52-week high was Rs.873.6, indicating a substantial decline of over 53% from that peak to the current low of Rs.404. This wide price range over the year reflects volatility and shifting investor sentiment within the sector.
Despite the challenges, the company’s low leverage and valuation discount relative to peers may be factors that market participants consider when analysing the stock’s position. However, the consistent underperformance against benchmark indices and limited growth in profitability remain key considerations in assessing the stock’s recent trajectory.
Summary of Key Metrics
To summarise, Shivalik Rasayan’s recent stock price decline to Rs.404 marks a new 52-week low amid a backdrop of subdued financial performance and market underperformance. The company’s low ROE, minimal operating profit growth, and declining quarterly PAT contribute to the cautious market assessment. Meanwhile, the stock trades below all major moving averages and has underperformed both its sector and broader market indices over the past year.
While the company maintains a conservative debt profile and trades at a valuation discount, these factors have not been sufficient to offset the impact of its financial trends on the stock price. The absence of domestic mutual fund holdings further highlights the restrained institutional interest in the stock at present.
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