Thirumalai Chemicals Ltd Falls to 52-Week Low Amid Continued Downtrend

Stock Performance and Market Context

On 23 Jan 2026, Thirumalai Chemicals Ltd’s shares fell sharply, underperforming its sector by 4.24% and closing near the intraday low of Rs 188.2, down 5.33% for the day. This decline followed two consecutive days of gains, signalling a reversal in short-term momentum. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained downward pressure.

In comparison, the broader Sensex index also experienced a negative session, falling 0.93% to 81,537.95 points after a flat opening. Notably, the NIFTY REALTY index hit a new 52-week low on the same day, highlighting sector-specific and market-wide headwinds.

Over the past year, Thirumalai Chemicals Ltd’s stock has declined by 37.91%, a stark contrast to the Sensex’s positive 6.60% return. The stock’s 52-week high was Rs 328.7, underscoring the significant erosion in value over the last twelve months.

Financial Performance and Ratings

The company’s financial metrics have deteriorated notably. Operating profit has contracted at an annualised rate of -276.45% over the last five years, reflecting persistent challenges in generating sustainable earnings growth. Net sales fell by 1.04% in the most recent quarter, contributing to a series of four consecutive quarters with negative results.

Interest expenses have increased substantially, rising 48.24% over the past six months to Rs 43.91 crores. Profit before tax excluding other income (PBT less OI) declined by 53.8% to a loss of Rs 52.16 crores compared to the previous four-quarter average. Similarly, net profit after tax (PAT) fell by 20.1% to a loss of Rs 33.38 crores in the latest quarter.

The company’s EBITDA remains negative, signalling ongoing operational difficulties and cash flow constraints. This financial profile has led to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 29 Oct 2025, with a current Mojo Score of 15.0. The Market Cap Grade stands at 3, reflecting a relatively modest market capitalisation compared to peers.

Long-Term and Recent Trends

Thirumalai Chemicals Ltd’s performance over the last three years has been below par relative to the BSE500 index, with negative returns recorded over one year, three months, and three years. The stock’s profitability has deteriorated sharply, with profits falling by 346.6% over the past year, further emphasising the challenges faced by the company.

The stock’s valuation appears risky compared to its historical averages, reflecting investor caution amid the company’s financial trajectory. The persistent negative earnings and declining sales have contributed to this cautious stance.

Promoter Activity

Despite the stock’s recent performance, promoters have increased their stake by 1% over the previous quarter, now holding 37.13% of the company’s equity. This rise in promoter shareholding may indicate a degree of confidence in the company’s longer-term prospects, even as the stock trades near its 52-week low.

Summary of Key Metrics

To summarise, Thirumalai Chemicals Ltd’s stock closed near its 52-week low of Rs 187.85, reflecting a 37.91% decline over the past year. The company’s financial results have been consistently negative, with operating profit shrinking at an annualised rate of -276.45% over five years and net sales declining recently. Interest costs have risen sharply, and profitability metrics such as PBT and PAT remain in negative territory.

The stock’s trading below all major moving averages and its downgrade to a Strong Sell grade underline the challenges faced. However, the increase in promoter shareholding suggests some level of internal confidence despite the current market valuation and performance.

Market and Sector Overview

The commodity chemicals sector continues to face headwinds, as evidenced by the underperformance of Thirumalai Chemicals Ltd and the broader market indices. The Sensex’s fall below its 50-day moving average, despite the 50DMA remaining above the 200DMA, indicates a cautious market environment. The sector’s volatility and the company’s financial trends have contributed to the stock’s recent lows.

Technical Indicators

Technically, the stock’s position below all key moving averages signals a bearish trend. The intraday low of Rs 188.2 on 23 Jan 2026 marks a critical support level near the 52-week low. The reversal after two days of gains suggests that short-term buying interest has been overwhelmed by selling pressure.

Conclusion

Thirumalai Chemicals Ltd’s fall to a 52-week low is the culmination of sustained financial underperformance and sectoral pressures. The company’s negative earnings trajectory, rising interest expenses, and declining sales have weighed heavily on the stock price. While promoter stake increases may reflect internal confidence, the stock’s current valuation and technical indicators highlight the challenges faced by the company in the prevailing market environment.

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