Thirumalai Chemicals Ltd Falls to 52-Week Low of Rs.197.05 Amid Continued Downtrend

Stock Performance and Market Context

On 20 Jan 2026, Thirumalai Chemicals Ltd (Stock ID: 375519), operating in the Commodity Chemicals sector, recorded an intraday low of Rs.197.05, representing a 2.67% drop on the day. This decline contributed to an 11-day consecutive losing streak, during which the stock has depreciated by 15.46%. The day’s closing price reflected a 2.49% decrease, underperforming its sector by 1.67%.

The stock’s current price is substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex opened flat but later fell by 277.70 points (-0.38%) to 82,929.68. Despite this, the Sensex remains 3.89% shy of its 52-week high of 86,159.02, though it has experienced a 3.3% decline over the past three weeks.

Over the last year, Thirumalai Chemicals Ltd’s stock has delivered a negative return of 36.63%, markedly underperforming the Sensex’s positive 7.60% gain during the same period. The stock’s 52-week high was Rs.328.70, highlighting the extent of the recent decline.

Financial Performance and Profitability Trends

Thirumalai Chemicals Ltd’s financial results have reflected a challenging environment. The company reported a decline in net sales by 1.04% in the September 2025 quarter, contributing to a series of four consecutive quarters with negative results. Operating profit has contracted sharply, with an annualised decline rate of 276.45% over the past five years, indicating persistent difficulties in generating sustainable earnings growth.

Profit before tax (PBT) excluding other income for the latest quarter stood at a loss of Rs.52.16 crores, a 53.8% decrease compared to the average of the previous four quarters. Similarly, the net profit after tax (PAT) was negative at Rs.33.38 crores, down 20.1% relative to the prior four-quarter average. These figures underscore the ongoing pressure on the company’s profitability.

Interest expenses have risen significantly, with the latest six-month figure at Rs.43.91 crores, representing a 48.24% increase. This escalation in financial costs adds to the strain on earnings and cash flow.

The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) remain negative, further highlighting the risk profile associated with the stock. Over the past year, profits have declined by 346.6%, a stark contrast to the broader market’s performance.

Valuation and Market Sentiment

Thirumalai Chemicals Ltd is currently graded as a Strong Sell with a Mojo Score of 15.0, reflecting the market’s cautious stance. This rating was upgraded from Sell on 29 Oct 2025, signalling a further deterioration in the company’s outlook. The market capitalisation grade stands at 3, indicating a relatively modest size within its sector.

The stock’s valuation metrics suggest it is trading at levels considered risky compared to its historical averages. Its underperformance extends beyond the last year, with returns lagging the BSE500 index over the past three years, one year, and three months.

Despite these challenges, promoter confidence appears to be strengthening. 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 reflect a commitment to the business despite the current headwinds.

Summary of Key Metrics

To summarise, Thirumalai Chemicals Ltd’s stock has reached a new 52-week low of Rs.197.05, reflecting a sustained decline over recent months. The stock’s performance has been notably weaker than the broader market and its sector peers. Financial indicators reveal a contraction in sales and profitability, with rising interest costs and negative EBITDA contributing to a challenging financial profile.

While the Sensex has experienced some volatility, it remains significantly above its recent lows, contrasting with the stock’s downward trajectory. The company’s Mojo Grade of Strong Sell and low Mojo Score further illustrate the cautious market sentiment.

Promoter stake increases provide a counterpoint to the prevailing trends, indicating some level of confidence in the company’s prospects despite the current valuation and performance concerns.

Market and Sector Overview

The Commodity Chemicals sector, in which Thirumalai Chemicals Ltd operates, has faced headwinds amid fluctuating raw material costs and demand uncertainties. The stock’s underperformance relative to its sector peers and the broader market highlights the specific challenges faced by the company within this environment.

Technical indicators, including the stock trading below all major moving averages, suggest continued pressure on the price. The broader market’s mixed signals, with the Sensex below its 50-day moving average but the 50DMA above the 200DMA, reflect a cautious but not uniformly negative environment.

Conclusion

Thirumalai Chemicals Ltd’s fall to a 52-week low of Rs.197.05 encapsulates a period of financial strain and market underperformance. The company’s recent quarterly results, declining profitability, and elevated interest expenses have contributed to this trend. While promoter shareholding has increased, the stock’s valuation and performance metrics remain subdued relative to historical levels and market benchmarks.

Investors and market participants will continue to monitor the stock’s trajectory in the context of sector dynamics and broader market movements.

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