Recent Price Movement and Market Context
On 28 Jan 2026, Siyaram Silk Mills Ltd’s share price touched an intraday low of Rs.523.55, representing a 6.1% drop within the trading session. This decline contributed to a day change of -8.72%, underperforming its sector by 7.45%. The stock has been on a downward trajectory for three consecutive days, cumulatively losing 9.03% over this period. Currently, the share price is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bearish momentum.
In contrast, the broader market has shown strength. The Sensex opened flat but gained 429.39 points to close at 82,321.75, a 0.57% increase. The index remains within 4.66% of its 52-week high of 86,159.02, supported by mega-cap stocks leading the rally. Despite this positive market backdrop, Siyaram Silk Mills Ltd’s stock has not mirrored this trend, highlighting company-specific pressures.
Long-Term and Recent Performance Metrics
Over the past year, Siyaram Silk Mills Ltd has delivered a total return of -36.14%, significantly lagging behind the Sensex’s 8.45% gain. This underperformance extends beyond the last 12 months, with the stock also trailing the BSE500 index over the last three years, one year, and three months. The 52-week high for the stock was Rs.900, underscoring the steep decline to the current low.
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Financial Performance and Profitability Trends
The company’s financial results for the quarter ended December 2025 have been less favourable, contributing to the stock’s decline. Profit Before Tax (PBT) excluding other income stood at Rs.38.29 crores, reflecting a decrease of 15.7% compared to the previous period. Meanwhile, interest expenses have increased by 32.91% over the last six months, reaching Rs.18.66 crores, which has exerted additional pressure on profitability.
Return on Capital Employed (ROCE) for the half-year period is reported at 17.66%, the lowest level recorded recently, indicating a contraction in capital efficiency. Despite these challenges, the company maintains a low Debt to EBITDA ratio of 0.53 times, suggesting a strong capacity to service its debt obligations.
Valuation and Market Perception
Siyaram Silk Mills Ltd currently holds a Mojo Score of 31.0 with a Mojo Grade of Sell, downgraded from Hold as of 17 Dec 2025. The company’s market capitalisation grade stands at 3, reflecting its mid-tier size within the Garments & Apparels sector. Notably, domestic mutual funds hold no stake in the company, which may indicate limited institutional confidence or preference at current price levels.
Valuation metrics present a mixed picture. The company’s ROCE of 15.1% and an enterprise value to capital employed ratio of 1.8 suggest a very attractive valuation relative to peers’ historical averages. Operating profit has grown at an annualised rate of 50.07%, and profits have increased by 8.1% over the past year. However, the Price/Earnings to Growth (PEG) ratio of 1.5 points to moderate valuation relative to earnings growth.
Sector and Peer Comparison
Within the Garments & Apparels sector, Siyaram Silk Mills Ltd’s recent performance contrasts with the broader market’s upward trend. The stock’s sustained decline and underperformance relative to sector indices highlight company-specific factors influencing investor sentiment and price action. The stock’s current trading below all major moving averages further emphasises the prevailing downward momentum compared to peers.
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Summary of Key Concerns and Strengths
The stock’s fall to a 52-week low reflects a combination of subdued profitability, increased interest costs, and a decline in capital efficiency. The absence of domestic mutual fund holdings further underscores a cautious stance among institutional investors. However, the company’s strong debt servicing ability and healthy long-term operating profit growth provide some stabilising factors amid the recent price weakness.
While the stock’s valuation appears reasonable relative to its capital employed and profit growth, the recent downgrade in Mojo Grade to Sell and the ongoing price weakness highlight the challenges faced by Siyaram Silk Mills Ltd in the current market environment.
Market Outlook and Broader Context
Despite the stock’s underperformance, the broader market environment remains positive, with the Sensex nearing its 52-week high and mega-cap stocks driving gains. This divergence suggests that Siyaram Silk Mills Ltd’s price action is primarily influenced by company-specific factors rather than sector-wide trends.
Investors and market participants will continue to monitor the company’s financial metrics and market positioning as it navigates this period of price consolidation and valuation reassessment.
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