Key Events This Week
Jan 27: New 52-week low recorded at Rs.401.30
Jan 28: Sharp quarterly profit decline reported
Jan 29: Modest recovery with 1.32% gain
Jan 30: Week closes at Rs.408.90, down 2.24%
Jan 27: Stock Hits 52-Week Low Amid Market Pressure
On 27 January 2026, Sumitomo Chemical India Ltd’s share price plunged to a fresh 52-week low, closing at Rs.401.30, down 4.05% from the previous close. This marked a significant intraday low of Rs.409, reflecting a 2.21% intraday decline. The stock’s fall came despite the Sensex gaining 0.50% that day, highlighting company-specific weakness. This drop extended a two-day losing streak, with a cumulative loss of 7.03%, signalling sustained bearish momentum.
Technical indicators showed the stock trading below all key moving averages, reinforcing the negative trend. The 52-week high of Rs.665 starkly contrasts with the current levels, underscoring the stock’s prolonged downtrend. Despite a robust return on equity of 17%, valuation metrics such as a price-to-book ratio of 6.5 and a PEG ratio of 3.1 suggest the stock remains expensive relative to earnings growth, contributing to investor caution.
Jan 28: Quarterly Results Reveal Sharp Profit Decline
The following day, Sumitomo Chemical India Ltd reported a sharp decline in its December 2025 quarter results, intensifying concerns. Net sales dropped to ₹567.98 crores, the lowest in recent quarters, while profit after tax plunged 35.4% to ₹87.65 crores. Earnings per share fell to ₹1.52, marking the lowest quarterly EPS in recent history. Operating profit before depreciation, interest and tax (PBDIT) also declined to ₹99.49 crores, signalling margin pressures.
Liquidity concerns emerged as cash and cash equivalents fell to ₹42.48 crores at the half-year mark, potentially limiting operational flexibility. The company’s financial trend score deteriorated sharply from a neutral 1 to a negative -13, reflecting worsening fundamentals. This negative shift was accompanied by a downgrade in the Mojo Grade to Strong Sell, underscoring heightened caution among analysts.
On the trading front, the stock closed at Rs.401.95, a modest 0.16% gain from the previous day but still well below the week’s opening price. The broader Sensex surged 1.12%, highlighting the stock’s relative underperformance amid a positive market backdrop.
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Jan 29: Modest Recovery on Low Volume
On 29 January, the stock rebounded modestly, closing at Rs.407.25, up 1.32% on low volume of 17,020 shares. This gain came despite the Sensex rising only 0.22%, indicating a slight relative outperformance. However, the recovery was insufficient to offset the prior days’ losses, and the stock remained well below its weekly open of Rs.418.25.
The modest uptick may reflect short-term bargain hunting or technical support near the recent lows, but the underlying negative financial trends and valuation concerns continue to weigh on sentiment.
Jan 30: Week Ends with Slight Gain but Overall Loss
The week concluded on 30 January with the stock closing at Rs.408.90, a 0.41% gain from the previous day but still down 2.24% from the week’s open. The Sensex declined 0.22% on the day, leaving the stock’s weekly performance notably weaker in comparison. Trading volume increased slightly to 21,286 shares, but the stock’s inability to regain ground above Rs.410 suggests persistent investor caution.
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Daily Price Comparison: Sumitomo Chemical India Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-27 | Rs.401.30 | -4.05% | 35,786.84 | +0.50% |
| 2026-01-28 | Rs.401.95 | +0.16% | 36,188.16 | +1.12% |
| 2026-01-29 | Rs.407.25 | +1.32% | 36,266.59 | +0.22% |
| 2026-01-30 | Rs.408.90 | +0.41% | 36,185.03 | -0.22% |
Key Takeaways
Negative Financial Trend: The sharp 35.4% decline in quarterly profit and contraction in net sales to ₹567.98 crores highlight significant operational challenges. The deteriorating financial trend score from 1 to -13 confirms the worsening fundamentals.
Valuation Concerns: Despite a strong return on equity near 17%, the stock trades at a high price-to-book ratio of 6.5 and a PEG ratio of 3.1, indicating premium valuation not supported by earnings growth.
Liquidity Pressure: Reduced cash reserves to ₹42.48 crores may constrain the company’s ability to invest or manage short-term obligations effectively.
Market Underperformance: The stock’s 2.24% weekly decline contrasts with the Sensex’s 1.62% gain, reflecting company-specific weakness amid a generally positive market environment.
Technical Weakness: Trading below all key moving averages and hitting a 52-week low signals sustained bearish momentum and investor caution.
Conclusion
Sumitomo Chemical India Ltd’s week was characterised by a fresh 52-week low and a sharp quarterly profit decline, underscoring mounting challenges in the pesticides and agrochemicals sector. The stock’s underperformance relative to the Sensex and deteriorating financial metrics reflect a cautious outlook. While the company maintains strong return on equity and a conservative debt profile, valuation concerns and liquidity pressures weigh heavily. Investors should note the negative financial trend and recent downgrade to a Strong Sell rating, signalling elevated risks in the near term.
Overall, the week’s developments highlight the importance of close monitoring of upcoming results and sector dynamics before considering exposure to this stock.
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