Recent Price Movement and Market Context
On 12 December 2025, Sutlej Textiles and Industries recorded a day change of -2.12%, underperforming the Garments & Apparels sector by approximately -2.45%. The stock has been on a losing streak for two consecutive days, with a cumulative return of -3.92% over this period. This decline has brought the share price down to Rs.31.9, the lowest level observed in the past year.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This contrasts with the broader market, where the Sensex opened 232.90 points higher and is trading at 85,197.57, up 0.45% on the day. The Sensex remains close to its 52-week high of 86,159.02, just 1.13% away, supported by bullish moving averages with the 50-day DMA above the 200-day DMA. Mid-cap stocks are leading the market rally, with the BSE Mid Cap index gaining 0.73% today.
Long-Term Performance and Comparative Analysis
Over the last year, Sutlej Textiles and Industries has delivered a return of -51.70%, significantly lagging behind the Sensex’s positive return of 4.81% during the same period. The stock’s 52-week high was Rs.77.7, indicating a substantial erosion in value over the past twelve months. This underperformance extends beyond the last year, with the stock consistently trailing the BSE500 index across the previous three annual periods.
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Financial Metrics Highlighting Current Concerns
The company’s financial indicators reveal challenges that have contributed to the stock’s decline. Sutlej Textiles and Industries has exhibited a compound annual growth rate (CAGR) of -195.32% in operating profits over the last five years, indicating a contraction in core earnings. Additionally, the company’s ability to service debt is constrained, with a Debt to EBITDA ratio of 44.18 times, reflecting a high leverage position relative to earnings before interest, taxes, depreciation, and amortisation.
The debt-equity ratio for the half-year period stands at 6.03 times, one of the highest levels recorded for the company, underscoring the elevated financial risk. Profitability metrics also point to subdued returns, with an average Return on Equity (ROE) of 5.14%, suggesting limited profitability generated per unit of shareholders’ funds.
Operating profits have shown a negative trend, with a 15% decline over the past year, further impacting the company’s financial health. These factors collectively contribute to the stock’s classification as risky when compared to its historical valuation averages.
Shareholding and Market Position
Despite the company’s size, domestic mutual funds hold no stake in Sutlej Textiles and Industries. Given that domestic mutual funds typically conduct detailed research and maintain positions in companies with favourable prospects, their absence may reflect a cautious stance towards the stock’s current valuation and business outlook.
The stock’s consistent underperformance relative to benchmark indices over multiple years highlights ongoing challenges in regaining investor confidence and market momentum.
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Sector and Market Environment
The Garments & Apparels sector, in which Sutlej Textiles and Industries operates, has seen mixed performance. While the broader market indices and mid-cap segments have shown resilience and gains, the company’s stock has not mirrored this trend. The divergence between the company’s stock trajectory and the sector’s overall performance highlights specific challenges faced by Sutlej Textiles and Industries.
Market conditions remain generally positive, with the Sensex trading above key moving averages and approaching its 52-week high. This environment contrasts with the company’s stock movement, which continues to reflect pressures from financial and operational factors.
Summary of Key Price and Performance Data
The stock’s 52-week low of Rs.31.9 represents a significant decline from its 52-week high of Rs.77.7. The recent two-day consecutive fall has resulted in a near 4% drop in returns, with the stock trading below all major moving averages. Over the past year, the stock’s return stands at -51.70%, compared to the Sensex’s positive 4.81% return. Financial metrics such as operating profit growth, debt servicing capacity, and return on equity indicate ongoing challenges for the company.
Conclusion
Sutlej Textiles and Industries’ fall to a 52-week low of Rs.31.9 reflects a combination of subdued financial performance, high leverage, and persistent underperformance relative to market benchmarks. While the broader market and sector indices have shown strength, the company’s stock continues to face downward pressure amid these factors.
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