Unichem Laboratories Ltd Stock Falls to 52-Week Low of Rs.352.6

Stock Performance and Market Context

On 23 Feb 2026, Unichem Laboratories Ltd’s stock touched an intraday low of Rs.352.6, representing a 4.43% decline for the day and a 2.30% drop compared to the previous close. This performance lagged the Pharmaceuticals & Biotechnology sector by 2.44%. The stock is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In contrast, the broader market showed resilience, with the Sensex rising 286.14 points (0.46%) to close at 83,192.97, just 3.57% shy of its 52-week high of 86,159.02. Mega-cap stocks led the market rally, while Unichem’s small-cap status and sector-specific pressures contributed to its relative weakness.

Long-Term Price Trends and Valuation

Over the past year, Unichem Laboratories Ltd’s stock has declined by 47.16%, a stark contrast to the Sensex’s 10.47% gain during the same period. The stock’s 52-week high was Rs.727.95, underscoring the extent of the recent price erosion. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the last three years, one year, and three months.

Despite the price decline, the company’s valuation metrics present a mixed picture. The Return on Capital Employed (ROCE) stands at 4.9%, and the Enterprise Value to Capital Employed ratio is an attractive 1.1, indicating the stock is trading at a discount relative to its capital base. Additionally, the company’s PEG ratio is 0.8, reflecting profit growth relative to its price decline.

Financial Performance and Profitability Metrics

Unichem Laboratories Ltd’s recent quarterly results highlight some areas of concern. Profit Before Tax (PBT) excluding other income for the December 2025 quarter stood at Rs.6.11 crores, a sharp decline of 77.2% compared to the previous four-quarter average. Similarly, Profit After Tax (PAT) for the quarter was Rs.16.13 crores, down 56.0% from the prior four-quarter average. These figures indicate a contraction in profitability in the near term.

Interest expenses have also increased, with the latest six-month figure rising by 30.50% to Rs.15.66 crores. This elevated interest burden is reflected in the company’s high Debt to EBITDA ratio of 4.87 times, signalling a relatively low capacity to service debt obligations. The average Return on Equity (ROE) is modest at 1.44%, suggesting limited profitability generated per unit of shareholders’ funds.

Growth Trends and Operational Highlights

On a positive note, the company has demonstrated healthy long-term growth in operating profit, which has increased at an annual rate of 148.09%. Net sales have grown at a compound annual rate of 11.95% over the past five years, indicating steady revenue expansion despite recent earnings pressures.

Profit growth over the past year has been notable, with profits rising by 29.9% even as the stock price declined. This divergence between earnings and share price is reflected in the company’s PEG ratio of 0.8, which may suggest the market is discounting future challenges more heavily than current profit trends might warrant.

Shareholding and Market Position

The majority shareholding in Unichem Laboratories Ltd remains with the promoters, maintaining a stable ownership structure. The company operates within the Pharmaceuticals & Biotechnology sector, which continues to be a dynamic and competitive industry segment.

Despite the stock’s recent decline and underperformance relative to broader indices and sector peers, the company’s fundamentals reveal a complex picture of challenges and strengths. While profitability metrics and debt servicing capacity are areas of concern, steady revenue growth and operating profit expansion provide some counterbalance.

Summary of Key Metrics

To summarise, Unichem Laboratories Ltd’s stock has reached a 52-week low of Rs.352.6, reflecting a 47.16% decline over the past year. The company’s Debt to EBITDA ratio stands at 4.87 times, with interest expenses rising by 30.50% in the latest six months. Profitability has contracted recently, with PBT and PAT falling significantly in the December 2025 quarter. However, operating profit growth remains robust at 148.09% annually, and net sales have grown at nearly 12% per annum over five years. The stock trades below all major moving averages and has a Mojo Score of 31.0 with a Sell grade, downgraded from Strong Sell on 16 Feb 2026.

These factors collectively illustrate the current market sentiment and financial standing of Unichem Laboratories Ltd as it navigates a challenging phase within a generally rising market environment.

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