Shree Karthik Papers Ltd Falls to 52-Week Low of Rs.6.3

Stock Price Movement and Market Context

On 27 Feb 2026, Shree Karthik Papers Ltd’s share price fell to Rs.6.3, its lowest level in the past year. This new low comes after four consecutive days of decline, although the stock showed a modest gain today, outperforming its sector by 4.89%. 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, signalling a sustained bearish trend.

In comparison, the broader market index, Sensex, experienced a negative session, closing at 81,804.15 points, down 0.54% or 416.33 points. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed signals for the overall market. Notably, the S&P Bse Oil Gas index hit a new 52-week high today, contrasting with the weak performance of Shree Karthik Papers Ltd.

Long-Term Performance and Relative Weakness

Over the last 12 months, Shree Karthik Papers Ltd has delivered a negative return of -23.92%, significantly underperforming the Sensex, which posted a positive return of 9.63% over the same period. The stock’s 52-week high was Rs.11.5, indicating a steep decline of approximately 45% from its peak. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over the past three years, one year, and three months.

The company’s market capitalisation grade stands at 4, reflecting its relatively small size and limited market presence within the Paper, Forest & Jute Products sector. The Mojo Score of 12.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 21 Jan 2025, further underline the stock’s challenging outlook based on fundamental and technical assessments.

Financial Health and Profitability Concerns

One of the primary factors contributing to the stock’s decline is the company’s financial health. Shree Karthik Papers Ltd carries a high debt burden, with a debt-to-equity ratio of 7.65 times, indicating significant leverage and potential strain on its balance sheet. This elevated debt level is a key reason for the company’s weak long-term fundamental strength.

Over the past five years, the company’s net sales have grown at an annual rate of 27.80%, which is a positive indicator of top-line expansion. However, operating profit growth has remained flat at 0%, signalling difficulties in converting sales growth into earnings. The latest quarterly results for December 2025 reveal a PBDIT (Profit Before Depreciation, Interest and Taxes) of Rs.-0.34 crore, the lowest recorded figure, and an operating profit to net sales ratio of -2.36%, reflecting negative operating margins.

Profit before tax excluding other income (PBT less OI) also declined to Rs.-0.67 crore in the same quarter, underscoring the company’s ongoing challenges in generating positive earnings. These figures highlight the pressure on profitability despite revenue growth, which has weighed heavily on investor sentiment and stock performance.

Valuation and Risk Profile

The stock is currently trading at valuations that are considered risky relative to its historical averages. The combination of negative operating profits and high leverage has contributed to a deteriorated risk profile. Over the past year, profits have fallen by 63%, further exacerbating concerns about the company’s earnings quality and sustainability.

Shree Karthik Papers Ltd’s underperformance relative to the BSE500 index across multiple time frames reflects persistent challenges in both the near and long term. The company’s majority shareholding remains with promoters, which may influence strategic decisions but has not yet translated into improved market performance.

Sectoral and Industry Considerations

Operating within the Paper, Forest & Jute Products sector, Shree Karthik Papers Ltd faces sector-specific pressures including fluctuating raw material costs, demand variability, and competitive pricing. The sector itself has seen mixed performance, with some companies managing to sustain growth while others struggle with margin compression.

The company’s current market cap grade of 4 places it in the micro-cap category, which often entails higher volatility and sensitivity to market fluctuations. This classification, combined with the company’s financial metrics, contributes to the cautious stance reflected in its Mojo Grade of Strong Sell.

Recent Trading and Technical Indicators

Technically, the stock’s position below all major moving averages indicates a prevailing downtrend. The recent four-day consecutive fall prior to today’s modest gain suggests that the stock has been under sustained selling pressure. The slight recovery today, with a day change of +5.23%, has not yet reversed the overall negative trend but may indicate short-term consolidation.

Investors and market participants will likely continue to monitor the stock’s ability to break above key resistance levels defined by its moving averages to assess any potential shift in momentum.

Summary of Key Metrics

To summarise, Shree Karthik Papers Ltd’s stock has reached a 52-week low of Rs.6.3, reflecting a 23.92% decline over the past year against a positive Sensex return of 9.63%. The company’s high debt-to-equity ratio of 7.65 times, flat operating profit growth over five years, and negative quarterly profitability metrics have contributed to its current valuation challenges. The Mojo Grade of Strong Sell, upgraded from Sell in January 2025, encapsulates the stock’s risk profile and fundamental weaknesses.

While the stock has shown a minor rebound today, it remains below all significant moving averages, indicating that the downtrend is intact. The company’s position within the Paper, Forest & Jute Products sector and its micro-cap status add further context to its market performance and valuation.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today