Shivalik Rasayan Ltd Stock Falls to 52-Week Low of Rs.312

Stock Price Movement and Market Context

On 23 Jan 2026, Shivalik Rasayan Ltd's stock price fell sharply, hitting an intraday low of Rs.312, representing a 2.86% drop for the day and underperforming its sector by 1.65%. The stock closed with a day change of -2.49%. This decline places the stock well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

The broader market context was also subdued, with the Sensex falling by 679.79 points (-0.79%) to 81,656.15 after a flat opening. Notably, the Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals for the overall market trend.

Shivalik Rasayan's 52-week high stands at Rs.872.65, underscoring the steep decline of 64.3% from its peak over the past year. The stock's one-year performance shows a negative return of -58.81%, in stark contrast to the Sensex's positive 6.71% gain over the same period.

Financial Performance and Profitability Metrics

Shivalik Rasayan's financial metrics reveal persistent challenges in profitability and growth. The company has reported a Return on Equity (ROE) averaging 6.12%, which is considered low and indicative of limited profitability generated per unit of shareholders' funds. This figure contrasts with more robust returns typically expected in the sector.

Over the last five years, the company’s net sales have grown at an annual rate of 12.50%, while operating profit growth has been marginal at 0.55%, reflecting subdued expansion in core earnings. The most recent quarterly results for September 2025 showed a decline in Profit After Tax (PAT) to Rs.3.05 crore, down by 23.9% compared to the previous period, signalling near-term earnings pressure.

Institutional Holding and Market Sentiment

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 reduction in institutional participation may reflect cautious sentiment among investors with greater analytical resources and insight into company fundamentals.

The stock’s Mojo Score currently stands at 40.0, with a Mojo Grade of Sell, an upgrade from a previous Strong Sell rating as of 4 August 2025. The Market Cap Grade is rated at 4, indicating a relatively modest market capitalisation within its peer group.

Long-Term and Relative Performance

Shivalik Rasayan has underperformed not only in the last year but also over longer periods. Its returns lag behind the BSE500 index across the last three years, one year, and three months, highlighting consistent underperformance relative to broader market benchmarks.

Despite the stock’s decline, the company maintains a low average Debt to Equity ratio of 0.04 times, suggesting limited leverage and a conservative capital structure. Additionally, the stock trades at a Price to Book Value of 0.9, which is below the average historical valuations of its peers, indicating a valuation discount in the current market environment.

Summary of Key Metrics

To summarise, Shivalik Rasayan Ltd’s stock has reached a new 52-week low of Rs.312, reflecting a year-long decline of 58.81%. The company’s financial indicators point to modest growth and profitability, with a low ROE of 6.12% and minimal operating profit expansion over five years. Institutional investors have trimmed their holdings, and the stock trades below all major moving averages, signalling continued downward pressure.

While the company’s low debt levels and attractive Price to Book valuation provide some balance, the overall performance and market sentiment remain subdued. The stock’s underperformance relative to the Sensex and BSE500 indices further illustrates the challenges faced by Shivalik Rasayan in maintaining investor confidence and market momentum.

Market and Sector Overview

The Pesticides & Agrochemicals sector, in which Shivalik Rasayan operates, has seen mixed trends, with some indices such as NIFTY REALTY also hitting 52-week lows on the same day. This broader sector weakness may compound the stock’s individual performance issues, as reflected in its relative underperformance compared to sector peers.

Valuation and Trading Perspective

From a valuation standpoint, the stock’s Price to Book ratio of 0.9 suggests it is trading at a discount relative to historical averages within its sector. However, this valuation discount accompanies a low ROE and subdued profit growth, which may explain the cautious market pricing. The stock’s position below all key moving averages further emphasises the prevailing bearish technical outlook.

Conclusion

Shivalik Rasayan Ltd’s fall to a 52-week low of Rs.312 encapsulates a period of sustained underperformance marked by limited profitability growth, reduced institutional interest, and a challenging market environment. The stock’s financial and technical indicators collectively highlight the difficulties faced by the company in reversing its downward trajectory over the past year.

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