Stock Price Movement and Market Context
The stock recorded an intraday low of Rs.277.3, down 5.10% on the day, underperforming its sector by 3.45%. This marks the third consecutive day of decline, with the stock losing 8.07% over this period. Trading below all key moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—Shivalik Rasayan’s price trend indicates sustained downward momentum.
In contrast, the broader market benchmark, the Sensex, opened 772.19 points lower and is currently trading at 82,852.90, down 0.98%. Despite this, the Sensex remains within 3.99% of its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, signalling a relatively stronger market environment compared to the stock’s performance.
Long-Term Performance and Relative Underperformance
Over the past year, Shivalik Rasayan Ltd has delivered a total return of -58.89%, a stark contrast to the Sensex’s positive 8.80% return over the same period. The stock’s 52-week high was Rs.744.2, highlighting the extent of the decline. This underperformance extends beyond the last year, with the company consistently lagging behind the BSE500 index in each of the previous three annual periods.
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Financial Metrics Highlighting Challenges
Shivalik Rasayan’s financial indicators reveal areas of concern. The company’s average Return on Equity (ROE) stands at 6.12%, reflecting modest profitability relative to shareholders’ funds. This figure is considered low within the sector, indicating limited efficiency in generating returns.
Growth metrics over the last five years show net sales increasing at an annual rate of 12.50%, while operating profit growth remains subdued at 0.55% annually. The latest quarterly results for September 2025 reported a Profit After Tax (PAT) of Rs.3.05 crore, representing a decline of 23.9% compared to the previous period, signalling pressure on earnings.
Institutional Investor Participation
Institutional investors have reduced their holdings by 0.83% in the previous quarter, now collectively owning 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.
Valuation and Debt Profile
Despite the challenges, Shivalik Rasayan maintains a low average debt-to-equity ratio of 0.04 times, indicating minimal leverage and a conservative capital structure. The company’s Price to Book Value ratio is 0.8, suggesting that the stock is trading at a discount relative to its book value and peers’ historical valuations. The ROE of 2.4% in the most recent period further underscores the modest profitability but contributes to the valuation appeal from a purely price perspective.
Profitability Trends and Sector Comparison
While the stock has declined sharply, the company’s profits have shown a marginal increase of 0.1% over the past year. This slight improvement in profitability contrasts with the steep price depreciation, highlighting a disconnect between earnings performance and market valuation.
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Summary of Key Ratings and Scores
According to MarketsMOJO’s latest assessment dated 4 August 2025, Shivalik Rasayan’s Mojo Score stands at 40.0, with a Mojo Grade of Sell, downgraded from a previous Strong Sell rating. The company’s Market Cap Grade is 4, reflecting its micro-cap status within the sector. These ratings encapsulate the stock’s current standing based on financial health, valuation, and market performance.
Conclusion
Shivalik Rasayan Ltd’s fall to a 52-week low of Rs.277.3 is the culmination of sustained underperformance relative to the broader market and its sector peers. The stock’s decline is supported by modest profitability, limited growth in operating profits, reduced institutional interest, and a valuation discount despite a conservative debt profile. While the company’s financials show some stability in net sales growth and a slight uptick in profits, these factors have not translated into positive market sentiment or price appreciation over the past year.
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