Sri Ramakrishna Mills (Coimbatore) Ltd Falls to 52-Week Low Amidst Continued Downtrend

Stock Performance and Market Context

The stock of Sri Ramakrishna Mills (Coimbatore) Ltd opened sharply lower today, registering a gap down of 7.23% and touching an intraday low of Rs.37.1, which represents the lowest price level in the past year. This decline extends a three-day losing streak during which the stock has fallen by 15.44%. The day’s performance saw the stock underperform its sector, the Garments & Apparels industry, by 4.85%, while the textile sector itself declined by 2.13%.

Notably, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning reflects persistent selling pressure and a lack of short-term support levels.

On a broader scale, the Sensex index also experienced a decline, falling 367.93 points or 0.92% to 81,426.72 after a negative opening. The index has been on a three-week consecutive decline, losing 5.06% over this period. The Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed medium-term market signals.

Financial Performance and Fundamental Concerns

Sri Ramakrishna Mills (Coimbatore) Ltd’s financial results have contributed to the stock’s subdued performance. The company reported net sales of Rs.15.79 crores in the September quarter, a decline of 22.7% compared to the previous four-quarter average. The profit after tax (PAT) for the nine-month period stood at a loss of Rs.2.07 crores, reflecting a 25.13% deterioration. Operating profitability remains under pressure, with the PBDIT for the quarter registering a negative Rs.0.08 crores.

Over the last five years, the company’s operating profit has contracted at an annualised rate of 168.10%, indicating a challenging growth trajectory. The company’s debt profile also raises concerns, with an average debt-to-equity ratio of 2.54 times, highlighting a relatively high leverage position that may constrain financial flexibility.

These factors have contributed to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 11 November 2025, with a current Mojo Score of 3.0. The market capitalisation grade stands at 4, reflecting the company’s micro-cap status and associated risks.

Comparative Performance and Valuation

Over the past year, Sri Ramakrishna Mills (Coimbatore) Ltd has underperformed significantly relative to the broader market. The stock has declined by 32.27%, whereas the Sensex has delivered a positive return of 7.41% during the same period. Similarly, the BSE500 index has generated returns of 5.86%, underscoring the stock’s relative weakness.

The stock’s 52-week high was Rs.64.9, indicating a substantial drop of approximately 43% from its peak price. This wide gap between the high and the current price level reflects the challenges faced by the company and the market’s cautious stance.

Valuation metrics suggest the stock is trading at levels considered risky compared to its historical averages. Profitability has deteriorated sharply, with profits falling by 142.6% over the last year, further weighing on investor sentiment.

Shareholding and Sectoral Context

The majority shareholding in Sri Ramakrishna Mills (Coimbatore) Ltd remains with the promoters, indicating concentrated ownership. The Garments & Apparels sector, within which the company operates, has also faced headwinds, with sectoral declines contributing to the stock’s performance.

Despite the sector’s challenges, the company’s specific financial metrics and leverage position have amplified the downward pressure on its stock price.

Summary of Key Metrics

The stock’s recent decline to Rs.37.1 marks a new 52-week low, extending a downward trend that has persisted over several sessions. The company’s financial results reveal declining sales and profitability, compounded by a high debt burden. The downgrade to a Strong Sell rating and a Mojo Score of 3.0 reflect these challenges.

Market conditions have also been unfavourable, with the Sensex and sector indices experiencing declines. Sri Ramakrishna Mills (Coimbatore) Ltd’s underperformance relative to these benchmarks highlights the stock’s current difficulties.

While the stock remains under pressure, its position below all major moving averages and the negative financial trends provide a clear picture of the current state without speculation on future movements.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →