Sukhjit Starch & Chemicals Falls to 52-Week Low of Rs.144.3 Amidst Prolonged Downtrend

Stock Price Movement and Market Context

On 12 Dec 2025, Sukhjit Starch & Chemicals recorded its lowest price in the past year at Rs.144.3. This level represents a stark contrast to its 52-week high of Rs.315.35, reflecting a price contraction of over 54%. The stock’s performance today showed a modest recovery, gaining 1.41%, which outpaced the sector’s movement by 1.43%. Notably, this gain followed two consecutive days of decline, indicating a short-term pause in the downward trend.

Despite this minor uptick, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests that the stock is trading in a bearish zone relative to its recent and longer-term price trends.

Meanwhile, the broader market environment contrasts with the stock’s performance. The Sensex opened 232.90 points higher and climbed further to close at 85,297.66, up 0.57%. The index is approaching its 52-week high of 86,159.02, currently just 1.01% away. Mid-cap stocks led the market rally, with the BSE Mid Cap index gaining 1.21% on the day. The Sensex’s 50-day moving average remains above its 200-day moving average, signalling a bullish market trend overall.

Financial Performance and Profitability Trends

The stock’s price decline aligns with a series of financial indicators that reflect challenges in the company’s recent performance. Over the last year, Sukhjit Starch & Chemicals has generated a return of -51.22%, significantly underperforming the Sensex, which recorded a positive return of 4.93% during the same period.

Examining profitability, the company’s operating profit showed a contraction of 24.91% in the most recent quarter ending September 2025. This negative result marks the fourth consecutive quarter of losses, underscoring a sustained period of subdued earnings. The net profit after tax (PAT) for the latest six months stood at Rs.9.31 crores, reflecting a decline of 64.69% compared to prior periods.

Return on capital employed (ROCE) for the half-year was recorded at 6.21%, one of the lowest levels in recent years. Additionally, the operating profit to interest coverage ratio for the quarter was 2.06 times, indicating limited cushion to cover interest expenses from operating earnings. The company’s debt to EBITDA ratio remains elevated at 2.52 times, signalling a relatively high debt burden in relation to earnings before interest, tax, depreciation and amortisation.

Long-Term Growth and Valuation Metrics

Over the past five years, Sukhjit Starch & Chemicals’ net sales have grown at an annualised rate of 14.86%, while operating profit has expanded at a rate of 10.28%. These figures suggest moderate growth over the medium term, though recent quarterly results have not reflected this trend.

From a valuation perspective, the company’s return on capital employed of 5.4% and an enterprise value to capital employed ratio of 0.9 indicate a valuation that is comparatively attractive relative to peers. The stock is trading at a discount to the average historical valuations of similar companies within the sector. Despite the subdued profit performance, this valuation positioning may reflect market caution and risk considerations.

Shareholding remains concentrated with promoters holding the majority stake, which continues to influence corporate governance and strategic decisions.

Comparative Performance and Sector Overview

Within the Other Agricultural Products sector, Sukhjit Starch & Chemicals’ performance has lagged behind broader market indices and sector peers. The BSE500 index has outperformed the stock over the last three years, one year, and three months, highlighting a consistent pattern of underperformance.

The sector itself has seen mixed results, with some companies benefiting from favourable agricultural commodity prices and others facing headwinds from input costs and demand fluctuations. Sukhjit Starch & Chemicals’ subdued earnings and elevated leverage ratios have contributed to its relative weakness in this environment.

While the Sensex and mid-cap indices have demonstrated resilience and upward momentum, the stock’s position below all major moving averages and its recent 52-week low underscore the challenges it faces in regaining investor confidence and market traction.

Summary of Key Metrics

To summarise, the stock’s key financial and market metrics as of December 2025 include:

• 52-week low price: Rs.144.3


• 52-week high price: Rs.315.35


• One-year return: -51.22%


• Operating profit decline (latest quarter): -24.91%


• PAT decline (latest six months): -64.69%


• Debt to EBITDA ratio: 2.52 times


• ROCE (half-year): 6.21%


• Operating profit to interest coverage (quarter): 2.06 times


• Enterprise value to capital employed: 0.9

These figures collectively illustrate the pressures on the company’s earnings and valuation, which have coincided with the stock’s decline to its current low.

Market Outlook and Stock Positioning

Despite the broader market’s positive trajectory, Sukhjit Starch & Chemicals remains in a subdued phase, with its share price reflecting ongoing earnings pressures and leverage concerns. The stock’s position below all major moving averages indicates that it has yet to establish a recovery trend in price terms.

Investors and market participants will likely continue to monitor the company’s financial results and market developments closely, given the contrast between the stock’s performance and the overall market environment.

Conclusion

Sukhjit Starch & Chemicals’ fall to a 52-week low of Rs.144.3 marks a significant point in its recent price trajectory. The stock’s performance has been influenced by a combination of declining profitability, elevated debt levels, and subdued returns relative to market benchmarks. While the broader market and sector indices have shown strength, the company’s financial metrics and valuation reflect ongoing challenges that have contributed to its current market position.

Only for Rs. 14,999 - Get Access to 2 Years + 6 Months of All Premium Features on MarketsMojo. As low as ₹500/month! Claim 83% OFF →