Recent Price Movement and Market Context
On 1 Dec 2025, Shivalik Rasayan’s share price touched Rs.396, representing its lowest level in the past year. This movement followed three consecutive days of gains, signalling a reversal in the short-term trend. The stock underperformed its sector by 0.81% on the day, with a day change of -1.30%. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward momentum.
In contrast, the broader market index Sensex opened positively, rising by 359.25 points, but later declined by 424.02 points to close at 85,641.90, a marginal fall of 0.08%. The Sensex remains within 0.48% of its 52-week high of 86,055.86 and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, reflecting a generally bullish market environment. Small-cap stocks led the market with the BSE Small Cap index gaining 0.05% on the day.
Long-Term Performance and Comparative Analysis
Over the last year, Shivalik Rasayan’s stock has recorded a return of -30.75%, significantly lagging behind the Sensex’s 7.32% gain during the same period. The stock’s 52-week high was Rs.873.6, highlighting the extent of the decline to the current low. This underperformance extends beyond the last year, with the stock trailing the BSE500 benchmark in each of the past three annual periods.
The company’s market capitalisation grade is modest, reflecting its size and market presence within the Pesticides & Agrochemicals sector. Despite its scale, domestic mutual funds hold no stake in Shivalik Rasayan, which may indicate a cautious stance from institutional investors.
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Financial Metrics and Profitability Insights
Shivalik Rasayan’s financial data over recent years reveals subdued growth and profitability. The company’s average Return on Equity (ROE) stands at 6.12%, indicating limited profitability generated per unit of shareholders’ funds. Over the last five years, net sales have grown at an annual rate of 12.50%, while operating profit has shown a marginal rate of 0.55%, reflecting constrained earnings expansion.
Quarterly results for September 2025 show a Profit After Tax (PAT) of Rs.3.05 crore, which represents a decline of 23.9% compared to the previous corresponding period. This flat performance in recent quarters contributes to the cautious market sentiment surrounding the stock.
Balance Sheet and Valuation Considerations
The company maintains a low average debt-to-equity ratio of 0.04 times, suggesting limited leverage and a conservative capital structure. From a valuation perspective, Shivalik Rasayan’s Price to Book Value ratio is approximately 1.1, which is lower than the average historical valuations of its peers in the sector. This discount in valuation aligns with the subdued profitability and growth metrics.
Despite the stock’s negative return over the past year, the company’s profits have shown a slight increase of 0.1%, indicating some stability in earnings despite the challenging market conditions.
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Sector and Market Positioning
Operating within the Pesticides & Agrochemicals sector, Shivalik Rasayan faces a competitive environment where growth and profitability metrics are critical for market positioning. The company’s subdued financial performance contrasts with the broader market’s positive momentum, as reflected by the Sensex’s proximity to its 52-week high and leadership from small-cap stocks.
The stock’s current trading below all major moving averages suggests that market participants are pricing in the company’s recent performance trends and valuation considerations.
Summary of Key Data Points
To summarise, Shivalik Rasayan’s stock has reached Rs.396, its lowest level in 52 weeks, following a short-lived rally. The stock’s year-on-year return of -30.75% contrasts with the Sensex’s positive 7.32% return. Financial indicators show modest sales growth, limited operating profit expansion, and a low ROE of 6.12%. The company’s conservative debt profile and valuation discount are notable, while quarterly earnings have shown a decline in PAT.
These factors collectively contribute to the stock’s current price level and market sentiment, reflecting the challenges faced by Shivalik Rasayan within its sector and the broader market context.
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