Key Events This Week
16 Feb: Quarterly results reveal sharp revenue and margin contraction
17 Feb: Quality grade downgraded to average; stock falls 4.87%
17 Feb: Valuation grade improves despite price weakness
19 Feb: Technical indicators turn bearish amid momentum loss
20 Feb: Week closes near 52-week low at Rs.604.95
16 February: Quarterly Results Highlight Margin Pressures and Revenue Decline
Shri Jagdamba Polymers Ltd opened the week on a weak note, reacting to its quarterly financial results for the period ended December 2025. The company reported a significant decline in net sales to ₹70.52 crores, the lowest in recent quarters, accompanied by a sharp contraction in profitability. Operating profit margins compressed to 3.56%, reflecting intense margin pressures amid rising costs and competitive challenges in the packaging sector.
Profit Before Depreciation, Interest and Taxes (PBDIT) fell to ₹2.51 crores, while Profit After Tax (PAT) for the half-year declined by 29.57% to ₹15.84 crores. Earnings per share dropped to ₹8.97, the lowest in recent periods. Despite these setbacks, the company maintained a strong Return on Capital Employed (ROCE) of 22.05% and a robust cash position of ₹40.27 crores, offering some resilience against the negative earnings trend.
The stock price reflected these concerns, closing at Rs.623.30, down 5.13% on the day, while the Sensex gained 0.70%, underscoring the stock’s underperformance amid broader market strength.
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17 February: Quality Grade Downgrade and Valuation Shift
The following day, the company’s quality grade was downgraded from good to average, reflecting concerns over stagnating profitability growth and operational efficiency. This downgrade was accompanied by a reduction in the mojo score to 34.0 and a Sell rating, signalling increased caution among analysts. The stock price reacted negatively, closing at Rs.620.55 on 17 February, down 0.44% from the previous day’s close, and further falling to Rs.625.00 intraday as reported.
Despite the downgrade, Shri Jagdamba Polymers’ valuation grade improved from very attractive to attractive. The stock trades at a price-to-earnings (P/E) ratio of 12.03 and a price-to-book value (P/BV) of 1.74, positioning it reasonably within its peer group. Enterprise value to EBITDA (EV/EBITDA) stood at 8.68x, indicating operational earnings efficiency relative to enterprise value. These valuation metrics suggest that while the company faces fundamental challenges, its shares remain attractively priced relative to earnings and asset base.
18 February: Continued Price Pressure Amid Market Gains
On 18 February, the stock price declined further to Rs.608.55, down 1.93%, as the company’s fundamental challenges continued to weigh on investor sentiment. This decline contrasted with the Sensex’s gain of 0.43%, highlighting the stock’s persistent underperformance. Trading volume increased to 1,850 shares, indicating active selling pressure. The lack of positive catalysts and ongoing margin pressures contributed to the subdued price action.
19 February: Technical Indicators Signal Bearish Momentum
Technical analysis on 19 February revealed a shift to a more pronounced bearish trend. The stock closed marginally higher at Rs.608.75 (+0.03%), but key indicators such as moving averages, Bollinger Bands, and monthly MACD turned bearish. The stock traded near its 52-week low of Rs.590.20, reflecting vulnerability and lack of sustained upward momentum. The Relative Strength Index (RSI) remained neutral, while the Know Sure Thing (KST) indicator showed mixed signals, with weekly readings mildly bullish but monthly readings bearish.
Volume was subdued at 395 shares, and On-Balance Volume (OBV) data was inconclusive, adding to uncertainty. The technical downgrade reinforced the cautious stance adopted by analysts, with the mojo grade firmly in the Sell category. The Sensex declined 1.45% on the day, but the stock’s relative weakness was more pronounced, underscoring its challenging near-term outlook.
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20 February: Week Closes Near 52-Week Low Amid Mixed Market Signals
The week concluded with the stock closing at Rs.604.95, down 0.62% on the day and marking the lowest close of the week. The Sensex rebounded modestly by 0.41%, further emphasising Shri Jagdamba Polymers’ underperformance. Trading volume remained low at 367 shares, reflecting limited buying interest. The stock’s 52-week high of Rs.1,279.95 remains distant, underscoring the significant correction experienced over the past year.
Despite the negative price action, the company’s strong ROCE of 22.41% and low financial leverage provide some fundamental support. However, the combination of deteriorating earnings, quality grade downgrade, and bearish technical momentum suggests that the stock faces continued headwinds in the near term.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.623.30 | -5.13% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.620.55 | -0.44% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.608.55 | -1.93% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.608.75 | +0.03% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.604.95 | -0.62% | 36,674.32 | +0.41% |
Key Takeaways
Negative Earnings and Margin Pressure: The sharp decline in quarterly revenue and operating margins highlights significant operational challenges, with profitability under pressure from cost inflation and competitive dynamics.
Quality Grade Downgrade: The shift from good to average quality grade reflects stagnation in growth and operational efficiency, signalling caution for investors.
Valuation Remains Attractive: Despite price weakness, valuation metrics such as P/E and EV/EBITDA suggest the stock is reasonably priced relative to peers, offering potential value for longer-term investors.
Bearish Technical Momentum: Technical indicators have turned decisively bearish, with moving averages and Bollinger Bands signalling selling pressure and limited near-term upside.
Liquidity and Capital Strength: The company’s strong cash position and robust ROCE provide a buffer against short-term headwinds, though these have yet to translate into improved market performance.
Conclusion
Shri Jagdamba Polymers Ltd’s performance over the week of 16–20 February 2026 was marked by a clear deterioration in fundamentals and technical outlook. The company’s declining revenues, compressed margins, and quality grade downgrade have weighed heavily on the stock price, which fell 7.92% despite a broadly positive Sensex. While valuation metrics remain attractive and the company’s capital efficiency is commendable, the prevailing bearish momentum and operational challenges suggest that the stock may continue to face pressure in the near term. Investors should monitor upcoming quarterly results and sector developments closely to assess any signs of stabilisation or recovery.
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