Simbhaoli Sugars Falls to 52-Week Low of Rs.10.25 Amidst Prolonged Downtrend

The sugar industry stock, listed under the sugar sector, has been trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent weakness in price levels highlights the challenges faced by Simbhaoli Sugars in maintaining investor confidence and market momentum.

On the broader market front, the Sensex opened flat with a minor decline of 29.24 points but later edged higher to trade at 84,744.54, reflecting a 0.08% gain. The benchmark index remains close to its 52-week high of 85,290.06, just 0.64% away, supported by bullish moving averages where the 50-day DMA is positioned above the 200-day DMA. Mid-cap stocks led the market rally with the BSE Mid Cap index gaining 0.09% today, contrasting with the underperformance of Simbhaoli Sugars.

Examining the one-year performance, Simbhaoli Sugars has recorded a negative return of 52.68%, a stark contrast to the Sensex’s positive 9.23% return over the same period. The stock’s 52-week high was Rs.23.47, indicating a substantial decline from its peak price. This long-term underperformance is further reflected in the company’s financial metrics and market valuation.

From a fundamental perspective, Simbhaoli Sugars exhibits a negative book value, signalling weak long-term financial strength. The company’s net sales have shown a compound annual growth rate of -3.90% over the last five years, while operating profit has remained flat during this period. Additionally, the company carries a high debt burden, with an average debt-to-equity ratio reported at zero times, indicating a leveraged position that may be a concern for stakeholders.

Profitability metrics reveal an unusual scenario where profits have risen by 291.4% over the past year despite the stock’s significant price decline. The PEG ratio stands at zero, suggesting a disconnect between earnings growth and market valuation. This divergence may contribute to the stock’s perceived riskiness compared to its historical valuation levels.

Over the last three years, one year, and three months, Simbhaoli Sugars has underperformed the BSE500 index, indicating consistent challenges in delivering returns relative to broader market benchmarks. The stock’s recent five-day losing streak and its position below all major moving averages underscore the prevailing bearish sentiment.

The company’s promoter group remains the majority shareholder, maintaining significant control over the organisation. Despite this, the stock’s market capitalisation grade is rated at 4, reflecting a modest market cap relative to peers in the sugar sector.

On 12 August 2024, there was an adjustment in the evaluation of Simbhaoli Sugars’ Mojo Grade, moving from Sell to Strong Sell, with the trigger event dated 19 November 2025 linked to the 52-week low price level. The day’s price change was recorded at -0.84%, adding to the stock’s recent downward momentum.

In summary, Simbhaoli Sugars’ fall to Rs.10.25 marks a significant milestone in its ongoing price decline, with multiple financial and market indicators pointing to a challenging environment. The stock’s performance contrasts sharply with broader market indices and sector peers, reflecting a combination of valuation concerns, subdued sales growth, and elevated leverage.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →