Shivalik Rasayan Ltd Stock Falls to 52-Week Low of Rs.278.25

Stock Performance and Market Context

On 9 Feb 2026, Shivalik Rasayan Ltd opened with a positive gap of 2.01%, reaching an intraday high of Rs.292. However, the stock reversed course to hit an intraday low of Rs.278.25, closing at this new 52-week low. This represents a day change of -2.13%, underperforming its sector by 3.18%. The stock has declined for three consecutive sessions, losing 7.61% over this period.

Despite the broader market showing resilience, with the Sensex opening higher at 84,177.51 and gaining 0.71% before settling at 83,926.28 (up 0.41%), Shivalik Rasayan’s performance contrasts sharply. The Sensex is currently 2.66% below its 52-week high of 86,159.02 and has recorded a three-week consecutive rise, gaining 2.93% in that span, led by mega-cap stocks.

In comparison, Shivalik Rasayan’s one-year return stands at -62.29%, significantly lagging the Sensex’s 7.79% gain over the same period. The stock’s 52-week high was Rs.797.95, underscoring the steep decline it has experienced.

Technical Indicators and Moving Averages

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained bearish momentum and a lack of short-term support levels. The persistent trading below these averages suggests that the stock remains under pressure from sellers.

Financial Performance and Profitability Metrics

Shivalik Rasayan’s financial metrics reveal challenges in profitability and growth. The company’s average Return on Equity (ROE) stands at 6.12%, indicating modest returns on shareholders’ funds. This figure is considered low within the industry, reflecting limited efficiency in generating profits from equity capital.

Over the past five years, the company’s net sales have grown at an annual rate of 12.50%, while operating profit growth has been minimal at 0.55%. These figures suggest subdued expansion in core business operations.

In the most recent quarterly results for September 2025, the company reported a Profit After Tax (PAT) of Rs.3.05 crore, which declined by 23.9% compared to the previous quarter. This contraction in profitability adds to the concerns about the company’s near-term earnings trajectory.

Institutional Investor Participation

Institutional investors have reduced their stake in Shivalik Rasayan by 0.83% over the previous quarter, now collectively holding 4.02% of the company’s shares. This decline in institutional ownership may reflect a cautious stance by investors with greater analytical resources and insight into the company’s fundamentals.

Long-Term Performance and Valuation

The stock’s long-term performance has been below par, underperforming the BSE500 index over the last three years, one year, and three months. This persistent underperformance highlights ongoing challenges in delivering shareholder value relative to broader market benchmarks.

Despite these challenges, the company maintains a low average debt-to-equity ratio of 0.04 times, indicating a conservative capital structure with limited leverage. Additionally, the stock’s Price to Book Value ratio stands at 0.8, suggesting that it is trading at a discount relative to its book value and peers’ historical valuations.

With a recent ROE of 2.4%, the valuation metrics point to a very attractive price level from a purely numerical standpoint, although this is tempered by the company’s subdued profitability and growth trends.

Summary of Key Concerns

Shivalik Rasayan’s stock decline to Rs.278.25 reflects a combination of factors including weak profitability, limited growth in operating profits, and reduced institutional interest. The company’s financial performance has been characterised by low ROE and a significant drop in quarterly PAT, which have contributed to the stock’s underperformance relative to the sector and broader market indices.

While the stock is trading at a discount to book value and maintains a low debt profile, these positives have not been sufficient to offset concerns about earnings and growth. The technical picture remains bearish with the stock below all major moving averages, and the recent three-day consecutive fall underscores ongoing selling pressure.

Overall, the new 52-week low marks a notable milestone in the stock’s recent performance, highlighting the challenges faced by Shivalik Rasayan Ltd within the Pesticides & Agrochemicals industry.

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