Stock Price Movement and Market Context
On 11 Dec 2025, Sukhjit Starch & Chemicals recorded a fresh 52-week low at Rs.145. This level represents a substantial fall from its 52-week high of Rs.324.15, indicating a depreciation of over 55% within the last year. The stock has been on a declining trajectory for the past two trading sessions, with a cumulative return of -2.15% during this period. Today’s price movement showed a decline of 1.42%, underperforming the sector by 1.63%.
In comparison, the Nifty index closed at 25,898.55, up by 0.55% on the same day, maintaining a position just 1.65% below its own 52-week high of 26,325.80. The broader market environment remains positive, with all market capitalisation segments posting gains and the Nifty Midcap 100 leading with a 0.97% rise. The Nifty is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a bullish trend for the benchmark index.
However, Sukhjit Starch & Chemicals is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, highlighting the stock’s relative weakness compared to the broader market.
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Financial Performance Overview
The company’s financial results over recent quarters have reflected a challenging environment. The operating profit for the quarter ending September 2025 showed a decline of 24.91%, contributing to a series of four consecutive quarters with negative results. Net sales have recorded a compound annual growth rate of 14.86% over the past five years, while operating profit has grown at a rate of 10.28% annually during the same period. Despite this, the latest six-month period saw the profit after tax (PAT) at Rs.9.31 crore, representing a contraction of 64.69% compared to prior periods.
Return on capital employed (ROCE) for the half-year stood at 6.21%, one of the lowest levels observed recently. The operating profit to interest coverage ratio for the quarter was 2.06 times, indicating limited cushion to meet interest obligations. 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.
Over the last year, Sukhjit Starch & Chemicals has generated a total return of -52.03%, contrasting with the Sensex’s positive return of 4.04% over the same period. The stock has also underperformed the BSE500 index across multiple time frames including the last three years, one year, and three months.
Valuation and Shareholding
Despite the subdued financial performance, the stock’s valuation metrics suggest a discount relative to its peers. The enterprise value to capital employed ratio stands at 0.9, which is considered attractive in comparison to historical averages within the sector. The return on capital employed is recorded at 5.4%, reflecting modest capital efficiency.
Promoters remain the majority shareholders of Sukhjit Starch & Chemicals, maintaining significant control over the company’s strategic direction.
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Summary of Recent Trends
The stock’s recent price action and financial results illustrate a period of sustained pressure. The decline to Rs.145 represents a key technical milestone, reflecting investor caution amid ongoing earnings contraction and elevated leverage. The company’s sales growth over the medium term has been moderate, but profitability and returns have shown signs of strain in recent quarters.
While the broader market indices and sector peers have exhibited resilience and gains, Sukhjit Starch & Chemicals continues to trade below critical moving averages, underscoring the challenges faced in regaining upward momentum.
Investors and market participants will likely continue to monitor the company’s financial disclosures and market developments closely as the stock navigates this low price territory.
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