Suryaamba Spinning Mills Falls to 52-Week Low of Rs.116.2 Amid Market Volatility

Intraday Price Movement and Volatility

On 5 December 2025, Suryaamba Spinning Mills opened with a gap down of 6.4%, setting the tone for a challenging trading session. The stock's intraday low matched this opening dip at Rs.116.2, establishing the new 52-week low. Despite this, the share price touched an intraday high of Rs.131, representing a 5.52% rise from the opening price, before retreating again. The weighted average price volatility for the day was recorded at 5.99%, indicating significant price fluctuations throughout the session.

The stock's performance today lagged behind the broader garments and apparels sector by 2.18%, underscoring its relative weakness in comparison to industry peers. Additionally, Suryaamba Spinning Mills is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend over multiple time frames.

Market Context and Benchmark Comparison

While Suryaamba Spinning Mills faced downward pressure, the broader market exhibited resilience. The Sensex, after an initial negative opening of 139.84 points, rebounded by 182.03 points to close at 85,307.51, a marginal gain of 0.05%. The benchmark index is currently trading approximately 1% below its 52-week high of 86,159.02 and remains above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish market trend.

Large-cap stocks led the market recovery, contrasting with the performance of Suryaamba Spinning Mills, which is classified as a smaller market capitalisation entity with a market cap grade of 4. This divergence highlights the stock's relative underperformance amid a broadly positive market environment.

Long-Term Performance and Financial Metrics

Over the past year, Suryaamba Spinning Mills has recorded a total return of -19.87%, contrasting with the Sensex's positive return of 4.35% during the same period. This underperformance extends over the last three annual periods, where the stock has consistently lagged behind the BSE500 benchmark.

Examining the company’s financial growth, the operating profits have shown a compound annual growth rate (CAGR) of 2.59% over the last five years, indicating modest expansion in core earnings. Despite this, the stock’s valuation metrics suggest an attractive entry point relative to peers, with a return on capital employed (ROCE) of 6.9% and an enterprise value to capital employed ratio of 0.7. These figures point to a valuation discount compared to the average historical valuations within the garments and apparels sector.

Profitability has seen notable changes, with the latest six-month period reporting a profit after tax (PAT) of Rs.1.40 crore, reflecting a 307% rise in profits over the past year. The company has also declared positive results for four consecutive quarters, maintaining a dividend per share (DPS) of Rs.1.00 and a dividend payout ratio (DPR) of 25%, which are the highest recorded in recent years.

Shareholding and Market Position

The majority shareholding in Suryaamba Spinning Mills remains with the promoters, indicating a stable ownership structure. The company operates within the garments and apparels industry, a sector that has experienced varied performance across different market cycles.

Summary of Key Price and Performance Indicators

Suryaamba Spinning Mills’ 52-week high stands at Rs.199.8, with the current price at Rs.116.2 marking a significant retracement from that peak. The stock’s trading below all major moving averages reflects a sustained period of price pressure. The day’s trading session was marked by high volatility and a notable gap down at the open, factors that contributed to the new low.

In contrast, the broader market environment remains relatively stable, with the Sensex maintaining a position near its 52-week high and supported by strong performances from mega-cap stocks. This divergence highlights the specific challenges faced by Suryaamba Spinning Mills within its sector and market segment.

Conclusion

Suryaamba Spinning Mills’ fall to a 52-week low of Rs.116.2 on 5 December 2025 reflects a combination of sector-specific pressures and company-level valuation dynamics. While the stock has shown some improvement in profitability metrics and maintains a stable dividend policy, its price performance continues to trail broader market indices and sector benchmarks. The current trading levels and technical indicators suggest a cautious stance as the stock navigates a challenging market environment.

Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →