Intraday Price Movement and Market Context
On 1 Feb 2026, Suraj Ltd opened sharply lower with a gap down of -5.88%, continuing its slide to an intraday low of Rs.211, representing a steep fall of -12.08% from previous levels. The stock underperformed its sector by -6.24% on the day, signalling intensified selling pressure. This decline comes amid a broader market correction, with the Sensex reversing sharply after a positive start, falling by -834.96 points to trade at 81,554.01, down -0.87%. Despite the Sensex trading below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed technical signals for the broader market.
Suraj Ltd’s price currently trades below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the sustained bearish trend. The stock’s 52-week high stands at Rs.438.4, highlighting the extent of the recent decline, with the current price down by more than 50% over the last year.
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Long-Term Performance and Financial Metrics
Over the past year, Suraj Ltd’s stock has declined by -50.34%, a stark contrast to the Sensex’s positive return of 6.27% and the BSE500’s 6.74% gain over the same period. This underperformance reflects the company’s deteriorating financial health and subdued growth prospects within the Iron & Steel Products sector.
The company’s operating profit has contracted at an annualised rate of -50.99% over the last five years, signalling persistent challenges in generating earnings growth. The latest six-month period reveals a further decline in profitability, with the Profit After Tax (PAT) at Rs.2.21 crore shrinking by -83.67%. Similarly, Profit Before Tax excluding Other Income (PBT less OI) for the quarter stands at Rs.1.33 crore, down by -85.79% year-on-year.
Return on Capital Employed (ROCE) remains subdued at 6.94% for the half-year, indicating limited efficiency in deploying capital to generate profits. The company’s valuation metrics also reflect these concerns, with a ROCE of 4.5 and an Enterprise Value to Capital Employed ratio of 2.7, suggesting an expensive valuation relative to the returns generated.
Valuation and Market Position
Despite the recent price decline, Suraj Ltd’s stock trades at a discount compared to its peers’ average historical valuations. However, this discount has not translated into positive returns, as the stock’s profits have fallen by -102% over the past year, underscoring the depth of financial strain.
The company’s market capitalisation grade stands at 4, reflecting its relatively modest size within the sector. The Mojo Score of 23.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 4 Apr 2025, further highlight the cautious stance on the stock’s outlook based on quantitative assessments.
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Shareholding and Sectoral Context
Suraj Ltd operates within the Iron & Steel Products industry, a sector that has experienced volatility amid fluctuating raw material costs and demand cycles. The company’s majority shareholding remains with promoters, indicating concentrated ownership.
Given the stock’s recent performance and financial indicators, Suraj Ltd’s position within the sector reflects ongoing pressures that have weighed on investor sentiment and market valuation.
Summary of Key Data Points
To encapsulate, Suraj Ltd’s stock has reached a new 52-week low of Rs.211, down significantly from its 52-week high of Rs.438.4. The stock’s one-year return of -50.34% contrasts sharply with the Sensex’s 6.27% gain. Operating profit has declined at an annualised rate of -50.99% over five years, while recent quarterly results show negative trends in PAT and PBT less OI. The ROCE remains low at 6.94%, and valuation metrics suggest a relatively expensive position despite the price discount.
These factors collectively contribute to the stock’s current standing and reflect the challenges faced by Suraj Ltd in maintaining growth and profitability within a competitive sector environment.
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