Shivalik Rasayan Ltd Stock Falls to 52-Week Low of Rs.296.75

Recent Price Movement and Market Context

The stock recorded this fresh low on 2 Feb 2026, continuing a downward trend with a two-day consecutive fall resulting in a cumulative loss of 4.15%. On the day, Shivalik Rasayan underperformed its sector by 0.45%, closing with a day change of -1.97%. The share price currently trades below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bearish momentum.

In comparison, the broader market has also faced headwinds. The Sensex opened 167.26 points lower and was trading at 80,490.50, down 0.29%. Notably, other indices such as the S&P BSE FMCG and NIFTY FMCG also hit new 52-week lows on the same day, reflecting sectoral and market-wide pressures. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying longer-term support.

Long-Term Performance and Valuation Metrics

Over the past year, Shivalik Rasayan Ltd has delivered a negative return of 62.83%, a stark contrast to the Sensex’s positive 3.87% gain over the same period. The stock’s 52-week high was Rs.872.65, highlighting the extent of the decline. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.

Despite the price decline, the company’s valuation metrics present a mixed picture. The stock trades at a price-to-book value of 0.8, which is considered very attractive and indicates a discount relative to its peers’ historical valuations. The company’s return on equity (ROE) stands at 6.12%, reflecting modest profitability per unit of shareholders’ funds. The average debt-to-equity ratio remains low at 0.04 times, suggesting limited leverage and a conservative capital structure.

Financial Performance and Growth Trends

Shivalik Rasayan’s financial results have shown limited growth over recent years. Net sales have increased at an annual rate of 12.50% over the last five years, while operating profit growth has been marginal at 0.55% annually. The company reported a flat quarterly performance in September 2025, with profit after tax (PAT) at Rs.3.05 crore, representing a decline of 23.9% compared to the previous quarter.

Profitability metrics remain subdued, with the average ROE of 6.12% indicating relatively low returns on shareholders’ equity. This level of profitability has contributed to the stock’s subdued market performance and the recent downward pressure on its price.

Institutional Investor Activity

Institutional participation in Shivalik Rasayan has decreased, with a reduction of 0.83% in their stake over the previous quarter. Currently, institutional investors hold 4.02% of the company’s shares. Given their analytical resources and focus on fundamentals, this decline in institutional ownership may reflect concerns about the company’s near-term prospects and financial metrics.

Valuation and Profitability Considerations

While the stock’s valuation appears attractive with a low price-to-book ratio, the company’s profitability and growth metrics have been less encouraging. The ROE of 2.4% noted in some recent assessments further underscores the challenges in generating shareholder returns. Despite the steep price decline, profits have only marginally increased by 0.1% over the past year, indicating limited operational leverage or margin expansion.

Summary of Key Metrics

To summarise, Shivalik Rasayan Ltd’s stock has declined sharply to Rs.296.75, its lowest level in 52 weeks, reflecting a combination of subdued financial performance, limited growth, and reduced institutional interest. The company’s market capitalisation grade stands at 4, with a Mojo Score of 40.0 and a current Mojo Grade of Sell, downgraded from Strong Sell as of 4 Aug 2025. These ratings reflect the cautious stance on the stock given its recent trends and financial indicators.

Despite a low debt-to-equity ratio and an attractive valuation on a price-to-book basis, the company’s profitability and sales growth have not met expectations, contributing to the stock’s underperformance relative to the broader market and sector peers.

Sector and Market Comparison

Within the Pesticides & Agrochemicals sector, Shivalik Rasayan’s performance contrasts with some peers that have maintained steadier growth and valuation metrics. The sector itself has faced volatility, as evidenced by the 52-week lows hit by FMCG indices on the same day. The broader market’s mixed signals, with the Sensex trading below its 50-day moving average but the 50DMA above the 200DMA, suggest a cautious environment for stocks with weaker fundamentals.

Conclusion

The new 52-week low for Shivalik Rasayan Ltd at Rs.296.75 encapsulates a period of challenging market conditions and company-specific financial results. The stock’s decline over the past year, combined with modest profitability and growth figures, has contributed to its current valuation and market sentiment. While the company maintains a conservative capital structure, the subdued returns and reduced institutional participation highlight ongoing concerns reflected in the stock’s performance.

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