Shivalik Rasayan Falls to 52-Week Low of Rs.383.7 Amidst Continued Underperformance

Stock Price Movement and Market Context

On 5 December 2025, Shivalik Rasayan's share price touched an intraday low of Rs.383.7, representing a fall of 2.44% for the day and underperforming its sector by 2.01%. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex recovered sharply after a negative start, closing at 85,657.74 points, up 0.46% and nearing its 52-week high of 86,159.02.

While mega-cap stocks led the market rally, Shivalik Rasayan's performance diverged notably. Over the past year, the stock has recorded a return of -54.29%, significantly lagging behind the Sensex's 4.76% gain. The stock's 52-week high was Rs.873.6, highlighting the extent of the decline over the last twelve months.

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%, indicating modest returns generated on shareholders’ funds. Over the last five years, net sales have grown at an annual rate of 12.50%, while operating profit has shown minimal change, with a growth rate of just 0.55% during the same period.

Recent quarterly results for September 2025 show a decline in profit after tax (PAT) to Rs.3.05 crore, reflecting a contraction of 23.9% compared to the previous period. This stagnation in earnings contrasts with the company’s size and sector peers, where more robust growth has been observed.

Market Position and Shareholder Composition

Despite its market presence, Shivalik Rasayan has a limited footprint among domestic mutual funds, which hold no stake in the company. Given that domestic mutual funds typically conduct detailed research and maintain positions in companies with favourable prospects, their absence may reflect a cautious stance towards the stock or its business fundamentals.

The company’s debt-to-equity ratio remains low at an average of 0.04 times, indicating minimal leverage. This conservative capital structure contrasts with the subdued profitability and growth metrics, suggesting that financial risk is contained but growth drivers remain limited.

Valuation and Comparative Analysis

Shivalik Rasayan’s valuation metrics show a Price to Book Value ratio of approximately 1.1, which is lower than the average historical valuations of its peers. This discount reflects the market’s assessment of the company’s earnings potential and growth outlook. The company’s ROE of 2.4% in the recent period further underscores the modest returns relative to shareholder equity.

While the stock has generated a negative return of 54.29% over the past year, its profits have seen a marginal rise of 0.1%, indicating a disconnect between earnings performance and market valuation. This divergence may be influenced by broader market sentiment and sector-specific factors.

Historical Performance and Sector Comparison

Over the last three years, Shivalik Rasayan has consistently underperformed the BSE500 index, reflecting persistent challenges in matching broader market returns. The stock’s 54.29% decline over the past year contrasts sharply with the Sensex’s positive performance of 4.76% during the same period.

The Pesticides & Agrochemicals sector, in which Shivalik Rasayan operates, has seen mixed results, with some companies benefiting from favourable agricultural demand and regulatory environments. However, Shivalik Rasayan’s relative performance indicates that it has not capitalised on these sector tailwinds to the same extent as its peers.

Summary of Key Metrics

To summarise, Shivalik Rasayan’s stock price has declined to Rs.383.7, marking a 52-week low and reflecting a year-long trend of underperformance. The company’s financial indicators show modest profitability with an average ROE of 6.12%, slow growth in net sales and operating profit, and a recent quarterly PAT contraction of 23.9%. Its valuation metrics suggest a discount relative to peers, while its low debt levels indicate a conservative financial structure.

The stock’s performance contrasts with the broader market’s upward trajectory, as the Sensex trades near its 52-week high supported by mega-cap gains and bullish moving averages. Shivalik Rasayan’s limited presence among domestic mutual funds and consistent underperformance against benchmark indices highlight ongoing challenges in regaining investor confidence.

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