Recent Price Movement and Market Context
On 21 Jan 2026, Siyaram Silk Mills Ltd’s shares declined by 2.37% on the day, underperforming its sector by 1.38%. The stock hit an intraday low of Rs.549, which represents its lowest price point in the past 52 weeks, compared to its 52-week high of Rs.994.9. This decline comes amid a broader market downturn, with the Sensex falling 503.35 points (-1.08%) to 81,291.30 after a negative opening. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, signalling some underlying support. Notably, the Sensex has recorded a three-week consecutive fall, losing 5.21% over this period.
The stock’s technical indicators reflect sustained weakness, as Siyaram Silk is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing bearish sentiment among market participants.
Performance Analysis Over One Year and Beyond
Over the last 12 months, Siyaram Silk Mills Ltd has delivered a negative return of 39.85%, significantly underperforming the Sensex, which has gained 7.27% in the same timeframe. This underperformance extends beyond the one-year horizon, with the stock lagging the BSE500 index over the past three years, one year, and three months. Such sustained relative weakness highlights challenges in maintaining investor confidence and market positioning.
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Financial Metrics and Credit Profile
Despite the recent price decline, Siyaram Silk Mills Ltd maintains a relatively strong credit profile. The company’s Debt to EBITDA ratio stands at a low 0.53 times, indicating a manageable debt burden relative to earnings. This suggests a solid ability to service debt obligations, which is a positive factor amid the current market pressures.
Operating profit has demonstrated robust long-term growth, expanding at an annualised rate of 50.07%. This growth rate reflects the company’s capacity to enhance profitability over time, even as the stock price has struggled to reflect these fundamentals.
The company’s Return on Capital Employed (ROCE) is recorded at 15.1%, which is considered attractive within the Garments & Apparels sector. Additionally, the Enterprise Value to Capital Employed ratio is 1.8, indicating a fair valuation relative to the capital invested in the business. These metrics suggest that the company’s underlying business remains fundamentally sound despite recent market setbacks.
Recent Earnings and Interest Expense Trends
The company reported flat results for the quarter ended September 2025, which may have contributed to the subdued market response. Interest expenses for the quarter stood at Rs.8.89 crores, representing a 37.83% increase compared to the previous period. This rise in interest cost could be a factor weighing on profitability and investor sentiment.
It is also notable that domestic mutual funds hold no stake in Siyaram Silk Mills Ltd. Given their capacity for detailed research and due diligence, this absence of institutional ownership may reflect a cautious stance towards the stock’s current valuation or business outlook.
Valuation and Profitability Metrics
While the stock has declined by nearly 40% over the past year, the company’s profits have increased by 8.1% during the same period. This divergence between earnings growth and share price performance is reflected in a Price/Earnings to Growth (PEG) ratio of 1.5, which suggests that the stock is trading at a valuation that is not excessively stretched relative to its earnings growth.
However, the company’s Mojo Score currently stands at 40.0, with a Mojo Grade of Sell, downgraded from Hold on 17 Dec 2025. The Market Cap Grade is 3, indicating a mid-tier market capitalisation relative to peers. These ratings reflect a cautious outlook based on recent performance and valuation metrics.
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Sector and Market Environment
The Garments & Apparels sector has experienced mixed performance recently, with the NIFTY MEDIA index also hitting a 52-week low on the same day. This sectoral weakness, combined with the broader market decline, has contributed to the pressure on Siyaram Silk Mills Ltd’s share price. The Sensex’s ongoing three-week decline and its position below the 50-day moving average further illustrate the challenging market environment.
In summary, Siyaram Silk Mills Ltd’s stock has reached a significant technical milestone by touching its 52-week low of Rs.549. This reflects a combination of subdued earnings growth, rising interest expenses, limited institutional participation, and broader market headwinds. While the company’s financial metrics indicate some strengths, the stock’s recent price action underscores the cautious sentiment prevailing among investors and market participants.
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