Recent Price Movement and Market Context
On 26 Nov 2025, Spenta International’s share price declined by 1.47%, underperforming its sector by 2.39%. This marks the fourth consecutive day of losses, during which the stock has delivered a cumulative return of -9.4%. The current price of Rs.90.4 stands well below its 52-week high of Rs.189.75, indicating a substantial retracement over the past year.
Trading activity has been somewhat erratic, with the stock not trading on one of the last 20 sessions. Additionally, Spenta International is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward momentum.
In contrast, the broader market has shown resilience. The Sensex rose sharply by 1.21% to close at 85,609.51, just 0.22% shy of its 52-week high of 85,801.70. The index has gained 2.88% over the past three weeks, supported by mid-cap stocks which advanced by 1.32% today. This divergence highlights the relative weakness in Spenta International’s share price compared to the overall market trend.
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Financial Performance and Valuation Metrics
Spenta International’s financial indicators over recent periods reveal pressures on profitability and capital efficiency. The company’s average Return on Capital Employed (ROCE) stands at 5.88%, with the half-year ROCE reported at 5.07%, reflecting subdued returns relative to capital invested. This figure is notably modest within the Garments & Apparels sector.
Net sales for the latest quarter were recorded at Rs.10.98 crores, representing a decline of 7.3% compared to the average of the preceding four quarters. This contraction in sales volume or value has contributed to the overall subdued earnings environment.
Profitability ratios also indicate constraints in servicing debt obligations, with an average EBIT to interest coverage ratio of 1.29. This suggests limited buffer for interest payments relative to earnings before interest and tax, which may be a factor in market sentiment.
Over the past year, the stock has generated a return of -44.11%, contrasting with the Sensex’s positive return of 7.01% over the same period. Furthermore, Spenta International’s profits have declined by approximately 54% year-on-year, underscoring the challenges faced in maintaining earnings growth.
Long-Term and Sectoral Comparisons
When viewed over a longer horizon, Spenta International’s performance has lagged behind broader benchmarks such as the BSE500 index across one-year, three-year, and three-month periods. This underperformance relative to the wider market and sector peers highlights persistent difficulties in regaining momentum.
Despite these challenges, the stock’s valuation metrics present a contrasting picture. The company’s Enterprise Value to Capital Employed ratio is approximately 0.9, which is considered attractive relative to historical averages within the sector. This valuation discount may reflect market caution given the recent financial trends.
Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.
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Trading Patterns and Market Behaviour
The stock’s recent trading pattern has been marked by a lack of consistent upward movement, with the price remaining below all major moving averages. This technical positioning often signals a bearish trend in market analysis. The absence of trading on one day in the last 20 sessions may indicate lower liquidity or investor hesitation.
In contrast, the broader market environment remains positive, with the Sensex demonstrating strength and trading above its 50-day and 200-day moving averages. Mid-cap stocks have been leading gains, which further emphasises the relative underperformance of Spenta International within its sector and market segment.
Investors and market participants may note the divergence between the company’s stock trajectory and the overall market rally, which has been supported by sustained buying interest in other segments.
Summary of Key Metrics
To summarise, Spenta International’s key financial and market metrics as of 26 Nov 2025 include:
- New 52-week low price: Rs.90.4
- Four consecutive days of price decline, totalling -9.4% returns
- Net sales for the latest quarter at Rs.10.98 crores, down 7.3%
- Average ROCE at 5.88%, half-year ROCE at 5.07%
- EBIT to interest coverage ratio averaging 1.29
- Profit decline of approximately 54% year-on-year
- Stock trading below all major moving averages
- Market capitalisation grade at 4
These figures illustrate the current state of the company’s financial health and market valuation, providing a comprehensive view of its recent performance.
Conclusion
Spenta International’s fall to a 52-week low of Rs.90.4 reflects a period of sustained price pressure amid subdued financial results and valuation adjustments. While the broader market has shown strength, the stock’s performance remains challenged by declining sales, modest returns on capital, and limited earnings coverage for interest expenses. The valuation discount relative to peers indicates market caution, while promoter ownership continues to be a stabilising factor in the company’s governance structure.
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