Stock Price Movement and Market Context
On the day in question, Shivalik Rasayan opened with a gap down of -2.18%, continuing a reversal after two consecutive days of gains. The stock underperformed its sector by -1.84%, closing near its intraday low of Rs.322.05, down -2.51% from the previous close. This new low price is substantially below its 52-week high of Rs.872.65, representing a steep decline of approximately 63% from that peak.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex, despite a negative close of -0.36% at 82,950.32 points, remains only 3.87% below its own 52-week high of 86,159.02. However, the Sensex itself has been on a three-week losing streak, down -3.28% over that period.
Financial Performance and Profitability Metrics
Shivalik Rasayan’s financial indicators reveal subdued profitability and growth. The company’s average Return on Equity (ROE) stands at a modest 6.12%, reflecting limited efficiency in generating profits from shareholders’ funds. Over the past five years, net sales have grown at an annualised rate of 12.50%, while operating profit growth has been minimal at 0.55%, indicating constrained expansion in core earnings.
Recent quarterly results for September 2025 further illustrate this trend, with Profit After Tax (PAT) declining by -23.9% to Rs.3.05 crore. This contraction in earnings contributes to the cautious sentiment surrounding the stock.
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Investor Participation and Market Sentiment
Institutional investor interest in Shivalik Rasayan has waned, with a decrease of -0.83% in their stake over the previous quarter, leaving them collectively holding just 4.02% of the company’s shares. Given their typically rigorous analysis and resource advantage, this reduction signals a cautious stance on the stock’s fundamentals.
Over the last year, the stock has delivered a negative return of -60.39%, markedly underperforming the Sensex’s positive 7.66% gain over the same period. This underperformance extends to longer time frames as well, with the stock lagging behind the BSE500 index across the last three years, one year, and three months.
Valuation and Balance Sheet Considerations
Despite the challenges, Shivalik Rasayan maintains a low average debt-to-equity ratio of 0.04 times, indicating limited leverage and a conservative capital structure. The company’s Price to Book Value ratio stands at 0.9, suggesting the stock is trading at a discount relative to its book value and peers’ historical valuations. The ROE for the most recent period is reported at 2.4%, which, while low, contributes to a valuation that some may consider attractive from a purely numerical standpoint.
Profit growth over the past year has been marginal, rising by just 0.1%, which aligns with the subdued sales and operating profit trends observed.
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Mojo Score and Ratings
Shivalik Rasayan currently holds a Mojo Score of 40.0, with a Mojo Grade of Sell as of 4 Aug 2025, an upgrade from its previous Strong Sell rating. The Market Cap Grade is 4, reflecting its micro-cap status within the Pesticides & Agrochemicals sector. These ratings encapsulate the company’s ongoing challenges in profitability, growth, and market performance.
Summary of Key Metrics
To summarise, Shivalik Rasayan Ltd’s stock has reached a new 52-week low of Rs.322.05, reflecting a significant decline from its 52-week high of Rs.872.65. The stock’s underperformance is underscored by a one-year return of -60.39%, poor profitability metrics including a low ROE of 6.12%, and flat to minimal growth in sales and operating profits over the past five years. Institutional investor participation has decreased, and the stock trades below all major moving averages, signalling continued downward pressure.
While the company’s low debt levels and valuation discount provide some balance, the overall financial and market indicators point to a period of subdued performance for Shivalik Rasayan Ltd within the Pesticides & Agrochemicals sector.
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