Stock Price Movement and Market Context
On 31 Dec 2025, Shivalik Rasayan Ltd's stock price fell to Rs.352, its lowest level in the past year. This decline comes after two consecutive days of losses, with the stock shedding 5.06% over this period. Despite an intraday high of Rs.367.95, representing a 2.84% gain during the session, the stock closed lower, underperforming its sector by 2.29% on the day. 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.
In contrast, the broader market has shown resilience. The Sensex opened 118.50 points higher and climbed further by 427.02 points to close at 85,220.60, a 0.64% gain. The Sensex remains close to its 52-week high of 86,159.02, trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a bullish trend. Small-cap stocks led the market rally, with the BSE Small Cap index gaining 1.19% on the day.
Long-Term Performance and Relative Returns
Over the past year, Shivalik Rasayan Ltd has delivered a negative return of -54.04%, a stark contrast to the Sensex's positive 9.06% gain during the same period. The stock's 52-week high was Rs.872.65, highlighting the extent of the decline. This persistent underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 benchmark in each of the previous three annual periods.
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Financial Metrics and Profitability Analysis
Shivalik Rasayan Ltd's financial indicators reflect challenges in generating robust returns. The company’s average Return on Equity (ROE) stands at 6.12%, indicating modest profitability relative to shareholders’ funds. Over the last five years, net sales have grown at an annualised rate of 12.50%, while operating profit growth has been minimal at 0.55%, signalling limited expansion in core earnings.
The quarterly results for September 2025 further illustrate this trend, with the Profit After Tax (PAT) declining by 23.9% to Rs.3.05 crore. Despite the company's size, domestic mutual funds hold no stake in Shivalik Rasayan Ltd, which may reflect a cautious stance given the company’s financial performance and market position.
Valuation and Debt Profile
On the valuation front, the stock presents a Price to Book Value ratio of 1, which is considered very attractive relative to its peers’ historical averages. The company’s ROE of 2.4% and a low average debt-to-equity ratio of 0.04 times suggest a conservative capital structure with limited leverage risk. However, the subdued profitability metrics temper the valuation appeal.
Over the past year, while the stock price has declined sharply, the company’s profits have seen a marginal increase of 0.1%, indicating a disconnect between earnings performance and market valuation.
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Market Position and Sectoral Context
Operating within the Pesticides & Agrochemicals sector, Shivalik Rasayan Ltd faces a competitive environment where growth and profitability are critical. The company’s modest sales growth and limited operating profit expansion over the last five years contrast with sectoral peers that have demonstrated stronger financial trajectories. The stock’s Mojo Score of 40.0 and a Mojo Grade of Sell, upgraded from Strong Sell on 4 August 2025, reflect the cautious market sentiment surrounding the company.
The stock’s market capitalisation grade is rated 4, indicating a mid-sized presence in the market. Despite this, the lack of significant institutional ownership, particularly from domestic mutual funds, underscores the challenges in attracting sustained investment interest.
Summary of Key Concerns
Shivalik Rasayan Ltd’s stock decline to a 52-week low is underpinned by several factors: persistent underperformance relative to benchmarks, subdued profitability with a low ROE, minimal operating profit growth, and a lack of institutional backing. The stock’s trading below all major moving averages further emphasises the prevailing downward trend.
While the company maintains a conservative debt profile and an attractive valuation on a Price to Book basis, these positives have not translated into market confidence, as reflected in the stock’s significant price erosion over the past year.
Conclusion
Shivalik Rasayan Ltd’s recent stock price movement to Rs.352 marks a notable low point in its 52-week trading range. The company’s financial and market performance data highlight ongoing challenges in delivering consistent growth and returns. The stock’s relative underperformance against the Sensex and sector peers, combined with limited institutional participation, continues to shape its market trajectory.
Investors and market participants will observe how these factors evolve in the context of broader market trends and sector dynamics.
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