Stock Performance and Market Context
On 29 Dec 2025, Suraj Ltd’s shares fell by 1.38%, underperforming its sector by a substantial margin of -100.6%. The stock has consistently traded below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum. Notably, the stock did not trade on one of the last 20 trading days, indicating sporadic liquidity concerns.
In contrast, the broader market, represented by the Sensex, experienced a modest decline of 0.39% on the same day, closing at 84,709.03 points. The Sensex remains near its 52-week high of 86,159.02, just 1.71% shy, highlighting the divergence between Suraj Ltd’s performance and the overall market trend.
Over the past year, Suraj Ltd’s stock has depreciated by 51.92%, a stark contrast to the Sensex’s positive return of 7.64% and the BSE500’s 5.26% gain. This underperformance emphasises the stock’s relative weakness within the Iron & Steel Products sector and the broader market.
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Financial Performance and Valuation Metrics
Suraj Ltd’s financial results have reflected a challenging environment. The company reported a decline in net sales by 11.39% in the quarter ending September 2025, contributing to a series of negative results over the last three consecutive quarters. Operating profit has contracted at an annualised rate of -1.03% over the past five years, indicating subdued growth prospects.
Operating cash flow for the year has reached a low of ₹-9.01 crores, signalling cash generation difficulties. Interest expenses for the nine-month period have increased sharply by 49.82%, reaching ₹4.06 crores, which adds pressure on profitability. Profit before tax excluding other income for the quarter fell dramatically by 96.53% to ₹0.24 crores, underscoring the earnings strain.
The company’s return on capital employed (ROCE) stands at 4.5%, which, when combined with an enterprise value to capital employed ratio of 2.7, suggests an expensive valuation relative to the returns generated. Despite this, the stock is trading at a discount compared to its peers’ average historical valuations, reflecting market caution.
Profitability has also deteriorated significantly, with profits falling by 76.1% over the past year, further contributing to the stock’s weak performance.
Shareholding and Trading Characteristics
The majority shareholding in Suraj Ltd remains with the promoters, maintaining a stable ownership structure. However, the stock’s erratic trading pattern, including a day without trading in the recent 20-day window, highlights some liquidity concerns that may affect price discovery and investor confidence.
Suraj Ltd’s Mojo Score currently stands at 26.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 4 Apr 2025. The market capitalisation grade is 4, indicating a mid-tier valuation within its sector.
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Sector and Market Comparison
Within the Iron & Steel Products sector, Suraj Ltd’s performance has lagged behind peers and the broader market indices. While the Sensex trades near its 52-week high and maintains a positive trend in the medium term, Suraj Ltd’s stock remains entrenched in a downtrend. The Sensex’s 50-day moving average is positioned above its 200-day moving average, signalling a generally bullish market environment, which contrasts with Suraj Ltd’s persistent weakness below all major moving averages.
This divergence highlights the stock’s relative underperformance despite a generally stable sector backdrop. The company’s financial metrics and recent results have contributed to this trend, with investors pricing in the subdued growth and profitability outlook.
Summary of Key Metrics
To summarise, Suraj Ltd’s key metrics as of December 2025 include:
- 52-week low price: ₹255.3
- 52-week high price: ₹530.4
- One-year stock return: -51.92%
- Net sales decline (latest quarter): -11.39%
- Operating cash flow (yearly): ₹-9.01 crores
- Interest expense growth (9 months): +49.82%
- Profit before tax excluding other income (quarterly): ₹0.24 crores, down 96.53%
- Return on capital employed (ROCE): 4.5%
- Enterprise value to capital employed: 2.7
- Mojo Score: 26.0 (Strong Sell)
These figures collectively illustrate the pressures faced by Suraj Ltd and the factors contributing to its current valuation and share price levels.
Conclusion
Suraj Ltd’s recent fall to a 52-week low reflects a combination of declining sales, reduced profitability, and increased financial costs. The stock’s performance has been notably weaker than the broader market and its sector peers, with key financial indicators pointing to ongoing challenges. Trading below all major moving averages and with a Strong Sell Mojo Grade, the stock remains under close scrutiny within the Iron & Steel Products sector.
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