Surat Trade & Merchantile Ltd Falls to 52-Week Low of Rs.4.67

Stock Price Movement and Market Context

The stock’s new 52-week low of Rs.4.67 represents a sharp fall from its 52-week high of Rs.8.09, reflecting a year-long depreciation of 38.65%. This decline contrasts markedly with the broader market, where the Sensex has gained 8.41% over the same period. Despite the stock’s underperformance, it marginally outperformed its sector today by 0.51%, though it continues to trade below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

Financial Performance and Profitability Concerns

Surat Trade & Merchantile Ltd’s recent quarterly results underline the challenges faced by the company. Net sales for the quarter stood at Rs.16.67 crores, down 19.7% compared to the previous four-quarter average. Profit after tax (PAT) plummeted by 92.7% to Rs.0.27 crores, indicating a sharp contraction in profitability. The company’s earnings before interest and tax (EBIT) to interest ratio averaged -2.25, highlighting difficulties in servicing debt obligations effectively.

Return on Capital Employed (ROCE) averaged a modest 3.15%, signalling low profitability relative to the capital invested. Additionally, the company’s non-operating income accounted for 300% of profit before tax (PBT), suggesting reliance on income sources outside core business operations to sustain profitability.

Valuation and Risk Profile

The stock’s valuation metrics indicate elevated risk levels. Over the past year, profits have declined by 22.8%, while the stock’s return has been negative at -38.65%. This performance has resulted in a downgrade of the company’s Mojo Grade from Sell to Strong Sell as of 14 Nov 2024, with a current Mojo Score of 3.0. The Market Cap Grade stands at 4, reflecting the company’s relatively modest market capitalisation within its sector.

Surat Trade & Merchantile Ltd has consistently underperformed the BSE500 benchmark over the last three annual periods, underscoring persistent challenges in generating shareholder value. The stock’s negative EBITDA further emphasises the financial strain, positioning it as a riskier investment compared to historical valuations.

Shareholding and Sectoral Position

The company operates within the Garments & Apparels industry, a sector that has seen mixed performance in recent times. Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction. Despite the sector’s overall dynamics, Surat Trade & Merchantile Ltd’s stock has not kept pace with broader market indices or sectoral peers.

Broader Market Environment

On the day Surat Trade & Merchantile Ltd hit its 52-week low, the broader market showed resilience. The Sensex, after opening 158.87 points lower, recovered by 185.04 points to close at 84,207.13, a marginal gain of 0.03%. The index remains 2.32% below its 52-week high of 86,159.02. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a cautiously positive medium-term trend. Mid-cap stocks led the market with the BSE Mid Cap index gaining 0.11% today, contrasting with the subdued performance of Surat Trade & Merchantile Ltd.

Summary of Key Metrics

To summarise, Surat Trade & Merchantile Ltd’s stock performance and financial metrics as of 9 Jan 2026 are as follows:

• New 52-week low price: Rs.4.67


• 52-week high price: Rs.8.09


• One-year stock return: -38.65%


• Sensex one-year return: +8.41%


• Quarterly PAT: Rs.0.27 crores, down 92.7%


• Quarterly net sales: Rs.16.67 crores, down 19.7%


• EBIT to interest ratio (avg): -2.25


• Return on Capital Employed (avg): 3.15%


• Mojo Grade: Strong Sell (upgraded from Sell on 14 Nov 2024)


• Mojo Score: 3.0


• Market Cap Grade: 4

The stock’s current trajectory reflects ongoing financial pressures and a challenging operating environment within the Garments & Apparels sector. Its valuation and profitability metrics remain subdued relative to market benchmarks and sector peers.

Unlock special upgrade rates for a limited period. Start Saving Now →