Shivalik Rasayan Hits 52-Week Low Amid Ongoing Downward Trend and Low Profitability

Shivalik Rasayan, a microcap player in the Pesticides & Agrochemicals sector, has experienced significant activity today, reaching a new 52-week low of Rs. 456.45. The stock has been on a downward trend, having fallen for the last eight consecutive days, resulting in a total decline of 10.68% during this period. Despite opening with a gain of 2.12% and hitting an intraday high of Rs. 470.3, it ultimately underperformed its sector by 0.86%.
In terms of financial performance, Shivalik Rasayan has shown a one-year return of -18.80%, contrasting sharply with the Sensex's decline of only -2.65%. The company's Return on Equity (ROE) stands at a low 5.85%, indicating limited profitability relative to shareholders' funds. Additionally, net sales have grown at an annual rate of 12.67%, while operating profit has only increased by 2.20% over the past five years.

The company's cash and cash equivalents are at their lowest, recorded at Rs. 27.97 crore, and the earnings per share (EPS) for the latest quarter is Rs. 1.02. With a low debt-to-equity ratio of 0.08 and a return on capital employed (ROCE) of 4.1, Shivalik Rasayan is trading at a discount compared to its peers, although it has consistently underperformed against benchmarks over the past three years.