Shivalik Rasayan Ltd Stock Hits 52-Week Low Amidst Continued Underperformance

Stock Price Movement and Market Context

On 29 Jan 2026, Shivalik Rasayan Ltd’s stock reached an intraday low of Rs.302.45, representing a 3.83% drop during the trading session. This new low is a notable departure from its 52-week high of Rs.872.65, underscoring a steep decline of approximately 65.3% from that peak. The stock’s day change was recorded at -1.84%, moving in line with the broader sector’s performance.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market, where the Sensex opened flat but later declined by 0.25% to close at 82,135.28 points, remaining about 4.9% below its own 52-week high of 86,159.02. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, signalling mixed market conditions.

Financial Performance and Profitability Metrics

Shivalik Rasayan’s financial indicators reveal subdued profitability and growth trends. The company’s average Return on Equity (ROE) stands at 6.12%, a figure that reflects modest returns on shareholders’ funds and points to limited efficiency in generating profits. Over the past five years, net sales have grown at an annualised rate of 12.50%, while operating profit growth has been minimal at 0.55%, highlighting constrained expansion in core earnings.

Recent quarterly results further illustrate this trend. The Profit After Tax (PAT) for the quarter ending September 2025 was Rs.3.05 crore, marking a decline of 23.9% compared to the previous period. This contraction in profitability adds to the pressure on the stock’s valuation and investor sentiment.

Institutional Holding and Market Sentiment

Institutional investors have reduced their stake in Shivalik Rasayan Ltd by 0.83% over 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 reduced institutional interest coincides with the stock’s underperformance relative to broader market indices.

Comparative Performance and Valuation

Over the last year, Shivalik Rasayan Ltd’s stock has delivered a negative return of 60.55%, significantly underperforming the Sensex, which posted a gain of 7.24% 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, indicating persistent challenges in maintaining competitive performance.

Despite these headwinds, the company maintains a low average Debt to Equity ratio of 0.04 times, suggesting limited leverage and a conservative capital structure. The stock’s Price to Book Value ratio stands at 0.8, which is below the average historical valuations of its peers, indicating a valuation discount. The company’s ROE of 2.4% further supports this valuation perspective, although it remains modest in absolute terms.

Profitability has shown marginal improvement over the past year, with profits rising by 0.1%, yet this has not translated into positive stock returns, reflecting broader market concerns and valuation pressures.

Mojo Score and Ratings

Shivalik Rasayan Ltd currently holds a Mojo Score of 40.0, with a Mojo Grade of Sell as of 4 Aug 2025, an upgrade from a previous Strong Sell rating. The Market Cap Grade is rated at 4, reflecting the company’s market capitalisation relative to its sector peers. These ratings encapsulate the stock’s recent performance trends and valuation metrics, signalling caution in the current market environment.

Summary of Key Metrics

To summarise, the stock’s 52-week low of Rs.302.45 is a culmination of subdued profitability, limited growth in operating earnings, declining institutional interest, and persistent underperformance relative to benchmark indices. While the company’s low leverage and valuation discount offer some stability, the overall financial and market indicators suggest ongoing challenges in regaining upward momentum.

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