Siyaram Silk Mills Ltd Falls 7.00%: 6 Key Factors Driving the Downtrend

Jan 31 2026 05:09 PM IST
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Siyaram Silk Mills Ltd experienced a challenging week ending 30 January 2026, with its share price declining by 7.00% from Rs.561.55 to Rs.522.25, contrasting sharply with the Sensex’s 1.62% gain over the same period. The stock’s performance was marked by a series of fresh 52-week lows, a downgrade to a Strong Sell rating, and persistent financial pressures that weighed heavily on investor sentiment despite a broadly positive market environment.

Key Events This Week

Jan 27: Q3 FY26 results reveal margin pressure and profit decline

Jan 28: Stock hits 52-week low amid continued downtrend

Jan 29: Downgrade to Strong Sell and further 52-week low

Jan 30: Slight recovery with 3.23% gain but weekly close lower

Week Open
Rs.561.55
Week Close
Rs.522.25
-7.00%
Week High
Rs.557.55
vs Sensex
-8.62%

Jan 27: Q3 FY26 Results Highlight Margin Pressure and Profit Decline

Siyaram Silk Mills Ltd opened the week under pressure, closing at Rs.557.55, down 0.71% from the previous close. The company reported Q3 FY26 results that revealed margin pressures and a decline in profitability, setting a cautious tone for the stock. Profit Before Tax excluding other income fell by 15.7% to Rs.38.29 crores, signalling challenges in operational efficiency. Despite the Sensex gaining 0.50% that day, Siyaram Silk underperformed, reflecting investor concerns over the company’s earnings trajectory.

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Jan 28: Stock Hits New 52-Week Low Amid Continued Downtrend

The downward momentum intensified on 28 January, with Siyaram Silk Mills Ltd’s stock plunging to a fresh 52-week low of Rs.523.55 intraday and closing at Rs.522.10, down 6.36%. This represented a sharp underperformance against the Sensex’s 1.12% gain. The stock’s decline extended a three-day losing streak, cumulatively down over 9%. Technical indicators showed the stock trading below all key moving averages, underscoring sustained bearish sentiment. The Garments & Apparels sector also lagged but not as severely, highlighting company-specific pressures.

Jan 29: Downgrade to Strong Sell and Further Price Decline

On 29 January, Siyaram Silk Mills Ltd’s stock fell further to a new 52-week low of Rs.500.60 intraday, closing at Rs.505.90, down 3.10%. This marked the fourth consecutive day of losses, with a cumulative decline of nearly 13%. The downgrade by MarketsMOJO from Sell to Strong Sell reflected deteriorating financial trends, including a 32.91% rise in interest expenses to Rs.18.66 crores and a half-year ROCE at a recent low of 17.66%. Despite a low Debt to EBITDA ratio of 0.53 times, the stock’s fundamentals and technicals painted a challenging outlook. The Sensex, meanwhile, gained 0.22%, highlighting the stock’s divergence from broader market strength.

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Jan 30: Slight Recovery but Weekly Close Remains Lower

On the final trading day of the week, Siyaram Silk Mills Ltd rebounded modestly, closing at Rs.522.25, up 3.23% on the day. This recovery followed four days of steep declines but was insufficient to offset the weekly losses. The Sensex declined 0.22% on the day but still posted a weekly gain of 1.62%. The stock’s weekly performance of -7.00% contrasted with the Sensex’s positive trend, underscoring the company’s ongoing challenges amid a generally buoyant market.

Daily Price Comparison: Siyaram Silk Mills Ltd vs Sensex

Date Stock Price Day Change Sensex Day Change
2026-01-27 Rs.557.55 -0.71% 35,786.84 +0.50%
2026-01-28 Rs.522.10 -6.36% 36,188.16 +1.12%
2026-01-29 Rs.505.90 -3.10% 36,266.59 +0.22%
2026-01-30 Rs.522.25 +3.23% 36,185.03 -0.22%

Key Takeaways from the Week

Negative Financial Trends: The quarter ended December 2025 saw a 15.7% decline in profit before tax excluding other income, alongside a 32.91% rise in interest expenses, pressuring margins and profitability.

Technical Weakness: The stock consistently traded below all major moving averages, signalling sustained bearish momentum and lack of short-term support.

Rating Downgrade: MarketsMOJO downgraded Siyaram Silk Mills Ltd from Sell to Strong Sell, reflecting deteriorating financial and quality metrics.

Valuation Shifts: Despite the downgrade, valuation metrics improved from very attractive to attractive, with a P/E ratio of 11.55 and P/BV of 1.75, indicating the stock is reasonably priced relative to earnings and book value.

Market Underperformance: The stock fell 7.00% over the week while the Sensex gained 1.62%, highlighting a significant divergence from broader market trends.

Institutional Absence: Domestic mutual funds hold no stake in the company, suggesting limited institutional confidence amid ongoing challenges.

Conclusion

Siyaram Silk Mills Ltd’s performance during the week ending 30 January 2026 was marked by persistent declines culminating in fresh 52-week lows and a downgrade to Strong Sell. The company’s financial results revealed margin pressures and rising interest costs, which, combined with technical weakness and lack of institutional support, contributed to the stock’s underperformance relative to the Sensex. Although valuation metrics have become more attractive, reflecting a lower price relative to earnings and book value, these positives have not yet translated into price stability or recovery. The modest rebound on the final trading day provided limited relief, leaving the stock in a vulnerable position amid a broadly positive market backdrop. Investors should continue to monitor the company’s financial and operational developments closely as it navigates these headwinds.

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