Shivalik Rasayan Faces Financial Challenges Amidst Declining Stock Performance and Low Profitability

Shivalik Rasayan, a microcap player in the pesticides and agrochemicals industry, has experienced significant activity today, nearing its 52-week low. The stock is currently just 0.02% away from this low of Rs 500.5, having underperformed its sector by 2.02%. Over the past three days, Shivalik Rasayan has seen a decline of 2.42%, despite opening today with a gain of 2.65% and reaching an intraday high of Rs 519.7.
The company's performance metrics reveal a challenging landscape, with a return on equity (ROE) of only 5.85%, indicating low profitability relative to shareholders' funds. Over the last five years, net sales have grown at an annual rate of 12.67%, while operating profit has seen a modest increase of 2.20%. The latest quarterly results show a significant drop in profit after tax (PAT) to Rs 1.60 crore, down 54.5%.

Shivalik Rasayan's financial position is characterized by a low debt-to-equity ratio of 0.08 times and a return on capital employed (ROCE) of 4.1. Despite these metrics, the stock has consistently underperformed against benchmarks, generating a return of -13.15% over the past year.