Stock Price Movement and Market Context
The stock of Sundrop Brands Ltd has been on a downward trajectory for the past three consecutive days, registering a cumulative loss of 1.83% during this period. Today, despite an intraday high of Rs.700, representing a 2.34% gain from the previous close, the stock ultimately settled at its new low of Rs.682.8. This closing price is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In comparison, the broader Sensex index opened lower at 84,600.99, down 94.55 points or 0.11%, and was trading marginally down by 0.02% at 84,681.09 at the time of reporting. The Sensex remains 1.75% below its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, indicating a cautiously positive medium-term trend for the benchmark. However, Sundrop Brands Ltd’s performance diverges sharply from this trend.
Long-Term Performance and Relative Underperformance
Over the past year, Sundrop Brands Ltd has delivered a negative return of 25.11%, significantly underperforming the Sensex, which has gained 8.22% over the same period. The stock’s 52-week high was Rs.982.95, underscoring the extent of the decline from its peak. This underperformance is consistent with the company’s track record over the last three years, during which it has lagged behind the BSE500 benchmark in each annual period.
The company’s Mojo Score currently stands at 40.0, with a Mojo Grade of Sell, downgraded from Hold on 10 September 2025. This reflects a deteriorating outlook based on MarketsMOJO’s comprehensive analysis framework. The Market Cap Grade is rated 3, indicating a mid-tier market capitalisation relative to peers.
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Financial Metrics and Growth Trends
One of the key factors contributing to the stock’s subdued performance is the company’s poor long-term growth in operating profit, which has declined at an annualised rate of 67.91% over the past five years. This contraction in profitability has weighed heavily on investor sentiment and valuation metrics.
Despite this, Sundrop Brands Ltd has reported positive results for the last four consecutive quarters. Quarterly net sales have shown a robust growth rate of 40.6%, with the latest quarter recording Rs.383.30 crore in sales, surpassing the previous four-quarter average. Additionally, the company’s profit after tax (PAT) for the first nine months of the current fiscal year stands at Rs.31.14 crore, reflecting a significant increase in absolute profit levels.
The return on equity (ROE) is modest at 2.6%, and the stock trades at a price-to-book value of 1.8, suggesting a fair valuation relative to its book value. Notably, the stock is trading at a discount compared to the average historical valuations of its peers in the edible oil sector. The company’s PEG ratio is 0.1, indicating that despite the negative stock returns, profit growth has been substantial, rising by 1446.1% over the past year.
Balance Sheet and Shareholding Structure
Sundrop Brands Ltd maintains a conservative capital structure with an average debt-to-equity ratio of 0.04 times, reflecting minimal leverage. This low indebtedness reduces financial risk and provides a stable foundation for the company’s operations.
The majority of the company’s shares are held by non-institutional investors, which may influence trading patterns and liquidity dynamics in the stock.
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Sector and Industry Positioning
Sundrop Brands Ltd operates within the edible oil industry, a sector characterised by intense competition and sensitivity to commodity price fluctuations. The company’s recent stock performance has lagged behind sector averages, with today’s price decline underperforming the edible oil sector by 1.03%.
While the broader market indices show signs of resilience, Sundrop Brands Ltd’s stock remains under pressure, reflecting the challenges it faces in regaining investor confidence and market share.
Summary of Key Data Points
To summarise, Sundrop Brands Ltd’s stock has reached a 52-week low of Rs.682.8, down from its high of Rs.982.95 within the last year. The stock’s Mojo Grade was downgraded to Sell on 10 September 2025, with a current Mojo Score of 40.0. The company’s operating profit has declined sharply over five years, while recent quarterly sales and profits have shown improvement. The stock trades below all major moving averages and has underperformed the Sensex and sector indices consistently over recent years.
Its low debt levels and fair valuation metrics contrast with the negative price performance, highlighting a complex investment profile shaped by both financial and market factors.
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