Suraj Products Ltd. Stock Falls to 52-Week Low of Rs.210.25

Recent Price Movement and Market Context

The stock has experienced a consecutive seven-day fall, resulting in a cumulative loss of 14.13% over this period. This decline has brought the share price down from its 52-week high of Rs.513.90 to the current low, representing a substantial erosion of value. On the day of the new low, Suraj Products’ price movement was broadly in line with its sector peers, which also faced subdued trading conditions.

Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning underscores the prevailing bearish momentum and the absence of short-term support levels.

Meanwhile, the broader market, represented by the Sensex, opened slightly lower at 84,600.99 points, down 94.55 points or 0.11%. The index is currently trading at 84,619.05, just 1.82% shy of its 52-week high of 86,159.02. Despite the Sensex’s proximity to its peak, Suraj Products has markedly underperformed, highlighting company-specific pressures.

Financial Performance and Profitability Trends

Suraj Products’ financial results have been subdued over recent quarters. The company has reported negative earnings for four consecutive quarters, with Profit Before Tax excluding other income (PBT less OI) falling by 51.65% to Rs.3.82 crores in the latest quarter. Similarly, Profit After Tax (PAT) declined by 50.7% to Rs.3.20 crores, while net sales dropped to their lowest quarterly level at Rs.58.69 crores.

Over the last five years, the company’s net sales have grown at an annualised rate of 12.70%, while operating profit has increased at 11.93% per annum. These growth rates, though positive, have not been sufficient to sustain investor confidence amid recent earnings contractions.

In comparison, the BSE500 index has delivered a 5.41% return over the past year, whereas Suraj Products has generated a negative return of 55.48%, reflecting its significant underperformance relative to the broader market.

Valuation and Efficiency Metrics

Despite the recent price weakness, Suraj Products exhibits certain strengths in operational efficiency. The company maintains a high Return on Capital Employed (ROCE) of 25.99%, indicating effective utilisation of capital resources. Additionally, its Return on Equity (ROE) stands at 10.7%, suggesting a fair level of profitability relative to shareholder equity.

Financial leverage appears manageable, with a low Debt to EBITDA ratio of 0.52 times, reflecting a strong capacity to service debt obligations. The stock’s Price to Book Value ratio is 1.7, which is below the average historical valuations of its peers, indicating that the market is pricing the stock at a discount relative to its sector.

However, the company’s Mojo Score has deteriorated to 33.0, with a corresponding Mojo Grade of Sell, downgraded from Hold on 13 Nov 2025. This rating reflects the combination of recent financial performance and valuation concerns.

Shareholding and Market Capitalisation

Promoters remain the majority shareholders of Suraj Products Ltd., maintaining significant control over the company’s strategic direction. The company’s market capitalisation grade is rated at 4, indicating a micro-cap status within the Iron & Steel Products sector.

In the context of the sector, Suraj Products’ performance contrasts with the broader market’s modest gains, underscoring the challenges faced by the company in maintaining competitive positioning.

Summary of Key Performance Indicators

To summarise, Suraj Products Ltd. has experienced a notable decline in its share price, culminating in a 52-week low of Rs.210.25. The stock’s performance over the past year has been significantly weaker than the Sensex and sector averages, with a total return of -55.48% compared to the Sensex’s 8.15% gain.

Financially, the company has faced declining profitability, with net sales and earnings contracting in recent quarters. Nonetheless, it retains commendable management efficiency metrics, including a robust ROCE and manageable debt levels. The current valuation reflects these mixed factors, with the stock trading at a discount to peers but carrying a Sell grade based on recent trends.

Investors and market participants will continue to monitor Suraj Products’ financial disclosures and market movements as the company navigates its current phase within the Iron & Steel Products sector.

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