Shivalik Rasayan Ltd Stock Falls to 52-Week Low of Rs.300.7

Stock Price Movement and Market Context

On 30 Jan 2026, Shivalik Rasayan Ltd recorded an intraday high of Rs.313.05, closing the day with a gain of 2.29%. Despite this positive intraday movement, the stock ultimately settled at Rs.300.7, its lowest level in the past year. This price is substantially below its 52-week high of Rs.872.65, representing a decline of approximately 65.5% from that peak.

The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend. This contrasts with the broader market, where the Sensex opened lower at 81,947.31, down 0.75%, and was trading at 82,194.85, a 0.45% decline at the time of reporting. The Sensex remains 4.82% below its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, signalling a relatively healthier market trend compared to Shivalik Rasayan’s stock.

Financial Performance and Profitability Metrics

Shivalik Rasayan’s financial indicators reveal areas of concern that have contributed to its stock’s underperformance. The company’s return on equity (ROE) stands at a modest 6.12%, reflecting limited profitability relative to shareholders’ funds. This figure is notably low for the Pesticides & Agrochemicals sector, where efficient capital utilisation is critical.

Over the past five years, the company’s net sales have grown at an annualised rate of 12.50%, while operating profit growth has been minimal at 0.55%. Such subdued expansion in operating profitability suggests challenges in scaling earnings despite revenue growth.

Quarterly results for September 2025 further underline this trend, with the company reporting a profit after tax (PAT) of Rs.3.05 crore, representing a decline of 23.9% compared to the previous quarter. This contraction in quarterly earnings adds to the pressure on the stock price.

Institutional Holding and Market Sentiment

Institutional investors have reduced their stake in Shivalik Rasayan Ltd by 0.83% in the previous quarter, now collectively holding 4.02% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.

The stock’s Mojo Score currently stands at 40.0, with a Mojo Grade of Sell, an improvement from a previous Strong Sell rating assigned on 4 Aug 2025. The Market Capitalisation Grade is rated 4, indicating a relatively small market cap within its sector. Despite the slight upgrade in rating, the overall sentiment remains cautious.

Long-Term and Recent Performance Comparison

Over the last year, Shivalik Rasayan Ltd’s stock has declined by 58.66%, significantly underperforming the Sensex, which has gained 7.10% over the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, underscoring persistent challenges in delivering shareholder returns.

Despite the stock’s price decline, the company’s profits have shown a marginal increase of 0.1% over the past year, suggesting some stability in earnings even as market valuation has contracted.

Balance Sheet and Valuation Metrics

Shivalik Rasayan maintains a low average debt-to-equity ratio of 0.04 times, indicating limited leverage and a conservative capital structure. This low indebtedness can be viewed as a positive factor in terms of financial risk management.

The company’s price-to-book value ratio stands at 0.8, which is below the average historical valuations of its peers in the Pesticides & Agrochemicals sector. This valuation discount reflects the market’s cautious stance on the stock, possibly due to its subdued growth and profitability metrics.

Summary of Key Metrics

To summarise, Shivalik Rasayan Ltd’s stock has reached a 52-week low of Rs.300.7, reflecting a prolonged period of underperformance relative to the broader market and sector peers. The company’s financial indicators, including a low ROE of 6.12%, minimal operating profit growth, and a recent quarterly PAT decline of 23.9%, highlight challenges in profitability and earnings momentum.

Institutional investor participation has decreased, and the stock trades below all major moving averages, signalling continued market caution. However, the company’s low debt levels and attractive price-to-book valuation ratio provide some balance to the overall assessment.

While the stock’s Mojo Grade has improved from Strong Sell to Sell, the current score of 40.0 indicates that the market remains wary of the company’s near-term prospects. The stock’s significant underperformance against the Sensex and BSE500 indices over multiple time frames further emphasises the need for careful analysis of its fundamentals.

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