Shivalik Rasayan Falls to 52-Week Low of Rs.398 Amidst Prolonged Underperformance

Stock Price Movement and Market Context

On 25 Nov 2025, Shivalik Rasayan recorded its lowest price in the past year at Rs.398. This level comes after three consecutive days of price declines, although the stock showed a modest gain today, outperforming its sector by 0.57%. Despite this short-term uptick, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a prevailing downward trend in its price momentum.

In contrast, the broader market environment presents a more optimistic picture. The Sensex opened 108.22 points higher and was trading at 85,013.69, up 0.13%, and remains within 0.93% of its 52-week high of 85,801.70. The Sensex is also trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish market trend. Mid-cap stocks are leading gains with the BSE Mid Cap index up by 0.24% today.

Long-Term Performance and Comparison

Over the last year, Shivalik Rasayan’s stock price has declined by 23.13%, a stark contrast to the Sensex’s positive return of 6.12% over the same period. The stock’s 52-week high was Rs.873.6, highlighting the extent of the price contraction. This persistent underperformance extends beyond the last year, with the stock trailing the BSE500 index in each of the past three annual periods.

Financial Metrics and Profitability Analysis

Shivalik Rasayan’s financial indicators reflect challenges in generating shareholder returns. The company’s average Return on Equity (ROE) stands at 6.12%, which is considered low for the sector and indicates limited profitability relative to shareholders’ funds. Over the past five years, net sales have grown at an annual rate of 12.50%, while operating profit has shown minimal growth at 0.55%, suggesting subdued expansion in core earnings.

Quarterly results for September 2025 reveal a net profit after tax (PAT) of Rs.3.05 crore, representing a decline of 23.9% compared to the previous period. This contraction in quarterly earnings adds to the concerns regarding the company’s earnings momentum.

Shareholding and Market Perception

Despite the company’s size, domestic mutual funds hold no stake in Shivalik Rasayan. Given that mutual funds typically conduct detailed research and due diligence, their absence from the shareholding pattern may reflect a cautious stance towards the stock’s valuation or business prospects.

Balance Sheet and Valuation Considerations

On the balance sheet front, Shivalik Rasayan maintains a low average debt-to-equity ratio of 0.04 times, indicating limited leverage and a conservative capital structure. The stock’s price-to-book value ratio is 1.1, which is lower than the average historical valuations of its peers, suggesting that the market is pricing the stock at a discount relative to its book value.

Profitability over the past year has remained largely flat, with a marginal rise of 0.1%, which contrasts with the significant decline in stock price. This divergence between earnings stability and share price depreciation highlights the market’s cautious assessment of the company’s growth prospects.

Sector and Industry Context

Operating within the Pesticides & Agrochemicals sector, Shivalik Rasayan faces competition from peers that have generally maintained stronger price performance and higher profitability metrics. The sector itself is sensitive to agricultural cycles, regulatory changes, and input cost fluctuations, factors that can influence company earnings and investor sentiment.

While the broader market indices and mid-cap segments have shown resilience and gains recently, Shivalik Rasayan’s stock price trajectory remains subdued, reflecting the company’s specific challenges in maintaining growth and profitability.

Summary of Key Price and Performance Data

To summarise, Shivalik Rasayan’s stock price reached Rs.398 today, marking its lowest point in the last 52 weeks. The stock’s performance over the past year shows a decline of 23.13%, contrasting with the Sensex’s positive return of 6.12%. The company’s financial indicators reveal modest sales growth and limited operating profit expansion, alongside a low ROE of 6.12%. The stock trades below all major moving averages, signalling a continued downtrend in price momentum.

These factors collectively contribute to the stock’s current valuation and market positioning within the Pesticides & Agrochemicals sector.

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