Recent Price Movements and Market Context
On 8 Jan 2026, Suraj Products opened with a positive gap of 3.19%, reaching an intraday high of Rs.204.20, a 3.29% gain from the previous close. However, the stock reversed course during the session, hitting the day’s low at Rs.192.55, down 2.6%. Despite this volatility, the stock marginally outperformed its sector, which declined by 2.26% on the day.
The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex, although down 0.38% at 84,635.74 points, remains just 1.8% shy of its 52-week high of 86,159.02. The Sensex is trading below its 50-day moving average, but the 50DMA remains above the 200DMA, indicating mixed technical signals for the broader market.
Performance Over the Past Year
Suraj Products has experienced a steep decline over the last twelve months, with a total return of -58.96%, significantly underperforming the Sensex, which posted an 8.28% gain over the same period. The stock’s 52-week high was Rs.489.80, underscoring the magnitude of the recent correction.
This underperformance extends beyond the past year, with the stock lagging the BSE500 index across the last three years, one year, and three months, reflecting persistent challenges in both near-term and long-term performance metrics.
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Financial Results and Profitability Trends
The company has reported negative results for the last four consecutive quarters, with key financial indicators reflecting subdued performance. The latest quarterly Profit After Tax (PAT) stood at Rs.3.20 crores, representing a decline of 50.7% compared to previous periods. Net sales for the quarter were at their lowest level in recent times, amounting to Rs.58.69 crores, while PBDIT (Profit Before Depreciation, Interest and Taxes) also hit a low of Rs.5.85 crores.
Over the past five years, Suraj Products has recorded modest growth rates, with net sales increasing at an annualised rate of 12.70% and operating profit growing at 11.93%. These figures indicate a relatively subdued expansion trajectory within the Iron & Steel Products sector.
Valuation and Efficiency Metrics
Despite the recent price decline, Suraj Products exhibits certain strengths in its financial structure. The company maintains a high Return on Capital Employed (ROCE) of 25.99%, signalling efficient utilisation of capital resources. Additionally, the firm’s debt servicing capacity remains robust, with a low Debt to EBITDA ratio of 0.52 times, suggesting manageable leverage levels.
The Return on Equity (ROE) stands at 10.7%, and the stock trades at an attractive Price to Book Value ratio of 1.6, indicating a valuation discount relative to its peers’ historical averages. However, this valuation has not shielded the stock from a 39.4% decline in profits over the past year, reflecting ongoing pressures on earnings.
Shareholding and Market Sentiment
The majority shareholding in Suraj Products is held by promoters, which often implies a stable ownership structure. Nevertheless, the stock’s Mojo Score has deteriorated to 36.0, with a Mojo Grade downgraded from Hold to Sell as of 13 Nov 2025. This downgrade reflects the market’s reassessment of the company’s prospects amid its recent financial and price performance.
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Sector and Broader Market Dynamics
The Iron & Steel Products sector, encompassing steel, sponge iron, and pig iron, has experienced a decline of 2.26% on the day, reflecting broader headwinds within the industry. Suraj Products’ performance, while slightly outperforming the sector by 0.31% today, remains under pressure given its extended downtrend and valuation adjustments.
In contrast, the broader market indices such as the Sensex continue to hover near their 52-week highs, underscoring a divergence between Suraj Products and the general market trend. This divergence highlights sector-specific and company-specific factors influencing the stock’s trajectory.
Summary of Key Metrics
To encapsulate, Suraj Products Ltd. is currently trading at Rs.192.55, its lowest level in the past year, down from a 52-week high of Rs.489.80. The stock has declined nearly 59% over the last year, with quarterly financials showing reduced profitability and sales. Despite strong capital efficiency and manageable debt, the company’s recent earnings contraction and market sentiment have weighed on its share price.
Conclusion
The stock’s fall to a 52-week low reflects a combination of subdued financial results, valuation adjustments, and sectoral pressures. While the company maintains certain financial strengths, the prevailing market conditions and recent performance trends have contributed to the current price level.
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