Shivalik Rasayan Falls to 52-Week Low of Rs.396 Amidst Market Pressure

Stock Price Movement and Market Context

On 1 Dec 2025, Shivalik Rasayan’s stock price reached Rs.396, the lowest level recorded in the past year. This decline follows a reversal after three consecutive days of gains, with the stock underperforming its sector by 0.81% on the day. The share price 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.

Meanwhile, the broader market displayed mixed signals. The Sensex opened 359.25 points higher but later slipped by 424.02 points, closing at 85,641.90, just 0.48% shy of its 52-week high of 86,055.86. The Sensex remains above its 50-day and 200-day moving averages, reflecting a generally bullish market environment. Small-cap stocks showed modest gains, with the BSE Small Cap index rising by 0.05%.

Comparative Performance Over One Year

Shivalik Rasayan’s one-year performance contrasts sharply with the broader market. The stock has recorded a negative return of 30.75% over the last 12 months, while the Sensex has shown a positive return of 7.32% during the same period. The stock’s 52-week high was Rs.873.6, highlighting the extent of the decline to the current low.

Financial Metrics and Profitability Indicators

Shivalik Rasayan’s financial data over recent years reveals modest growth and profitability challenges. The company’s net sales have expanded at an annual rate of 12.50% over the past five years, while operating profit has shown a marginal increase of 0.55% annually during the same period. These figures suggest limited expansion in core earnings despite revenue growth.

Return on Equity (ROE), a key measure of management efficiency and profitability, averaged 6.12%, indicating relatively low returns generated on shareholders’ funds. The latest quarterly Profit After Tax (PAT) stood at Rs.3.05 crore, reflecting a decline of 23.9% compared to the previous quarter, signalling pressure on bottom-line performance.

Shareholding and Market Interest

Despite the company’s size, domestic mutual funds hold no stake in Shivalik Rasayan. Given that mutual funds typically conduct thorough research and maintain positions in companies with favourable prospects, their absence may reflect a cautious stance towards the stock’s current valuation or business outlook.

Consistent Underperformance Relative to Benchmarks

Over the last three years, Shivalik Rasayan has consistently underperformed the BSE500 benchmark index. The stock’s negative return of 30.75% in the past year is part of a longer trend of relative underperformance, which has persisted across multiple annual periods. This pattern highlights challenges in matching broader market gains.

Balance Sheet and Valuation Considerations

The company maintains a low average debt-to-equity ratio of 0.04 times, indicating limited leverage and a conservative capital structure. The Price to Book Value ratio stands at 1.1, suggesting that the stock is trading at a discount relative to its peers’ historical valuations. Additionally, the company’s ROE of 2.4 in the most recent period points to a valuation that may be attractive from a purely numerical perspective, despite the subdued profitability.

Sectoral and Industry Context

Operating within the Pesticides & Agrochemicals sector, Shivalik Rasayan faces competitive pressures and market dynamics that influence its performance. The sector itself has experienced varied performance trends, with some companies demonstrating stronger growth and profitability metrics. Shivalik Rasayan’s current valuation and financial indicators reflect its position within this competitive landscape.

Summary of Key Price and Performance Data

To summarise, Shivalik Rasayan’s stock price has declined to Rs.396, marking a 52-week low and a significant drop from its peak of Rs.873.6. The stock’s performance over the past year shows a negative return of 30.75%, contrasting with the Sensex’s positive 7.32% return. The company’s financial metrics indicate modest sales growth, limited operating profit expansion, and subdued returns on equity. The stock trades below all major moving averages, signalling a prevailing downtrend.

These factors collectively illustrate the challenges faced by Shivalik Rasayan in maintaining price momentum and aligning with broader market gains.

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