Sumitomo Chemical India Ltd Falls to 52-Week Low of Rs.409

Stock Price Movement and Market Context

On 27 Jan 2026, Sumitomo Chemical India Ltd’s share price touched an intraday low of Rs.409, representing a 2.21% decline for the day and a 1.92% drop at close. This new 52-week low comes after two consecutive days of losses, during which the stock has fallen by 7.03%. The stock’s performance today notably underperformed the Pesticides & Agrochemicals sector by 1.86%, signalling relative weakness within its industry group.

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward momentum. This technical positioning suggests that the stock is facing persistent selling pressure and has yet to find a stable support level.

Meanwhile, the broader market environment has been challenging. The Sensex opened lower at 81,436.79, down 100.91 points (-0.12%), and was trading marginally down by 0.07% at 81,480.51 during the day. The Sensex itself has been on a three-week losing streak, declining 2.51% over that period. Notably, other indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows on the same day, reflecting a cautious market mood.

Long-Term Performance and Valuation Concerns

Sumitomo Chemical India Ltd’s one-year stock performance has been disappointing, with a decline of 18.17%, contrasting sharply with the Sensex’s 8.11% gain over the same period. The stock’s 52-week high was Rs.665, underscoring the extent of the recent price erosion.

Over the past five years, the company’s net sales have grown at a modest annual rate of 5.60%, while operating profit has increased at 9.35% annually. These growth rates are considered subdued relative to sector peers and broader market expectations. The company’s results for the half-year ended September 2025 were largely flat, further highlighting the lack of significant near-term momentum.

Financial ratios also raise cautionary flags. The debtors turnover ratio for the half-year stood at a low 0.37 times, indicating slower collection efficiency. Despite a strong return on equity (ROE) of 17%, the stock’s valuation appears stretched, trading at a price-to-book value of 6.5 times. This premium valuation is above the average historical valuations of its peers, suggesting that the market may be pricing in expectations that have yet to materialise.

The company’s PEG ratio stands at 3.1, reflecting a high price relative to earnings growth, which may be a factor in the stock’s recent underperformance. Over the last three years, the stock has also underperformed the BSE500 index, reinforcing the pattern of below-par returns across multiple time frames.

Operational and Financial Metrics

Sumitomo Chemical India Ltd maintains a strong management efficiency profile, with an ROE of 18.58%, which is a positive indicator of profitability relative to shareholder equity. The company also benefits from a low average debt-to-equity ratio of zero, reflecting a conservative capital structure with minimal leverage risk.

Promoters remain the majority shareholders, providing stability in ownership and strategic direction. However, despite these strengths, the stock’s recent price action suggests that investors are weighing the company’s growth limitations and valuation concerns more heavily.

The stock’s day-to-day volatility has been evident, with a day low of Rs.409 and a day change of -1.92%. The sustained decline over recent sessions and the breach of key technical support levels have contributed to the stock’s new 52-week low.

Sector and Market Comparisons

Within the Pesticides & Agrochemicals sector, Sumitomo Chemical India Ltd’s underperformance is notable. The sector itself has faced headwinds, but the company’s relative weakness is underscored by its stock falling more sharply than sector averages. The Sensex’s current trading below its 50-day moving average, despite the 50DMA remaining above the 200DMA, indicates a cautious market environment that has not favoured cyclical or mid-cap stocks like Sumitomo Chemical India Ltd.

Comparing the stock’s performance to broader indices and peers highlights the challenges faced by the company in maintaining investor confidence amid a competitive and evolving agrochemical landscape.

Summary of Key Metrics

To summarise, Sumitomo Chemical India Ltd’s stock has declined to Rs.409, its lowest level in 52 weeks, reflecting a combination of subdued sales growth, flat recent results, and valuation concerns. The stock’s premium price-to-book ratio and elevated PEG ratio contrast with its modest growth rates and recent negative returns. Despite strong management efficiency and a conservative debt profile, the stock’s performance has lagged both sector peers and benchmark indices over multiple time horizons.

The broader market’s cautious tone and the stock’s technical weakness have contributed to this new low, underscoring the challenges faced by the company in the current environment.

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