Stock Price Movement and Market Context
On 24 Nov 2025, Universal Starch Chem Allied’s stock opened and traded steadily at Rs.125, the lowest level recorded in the past year. The stock has experienced a cumulative return of -9.94% over the last four trading sessions, reflecting a sustained downward trend. This decline contrasts with the broader market, where the Sensex opened 88.12 points higher and was trading at 85,389.42, up 0.18% on the day. The Sensex is currently 0.48% below its 52-week high of 85,801.70 and has been on a three-week consecutive rise, gaining 2.61% during this period.
Universal Starch Chem Allied’s performance today was in line with its sector, Other Agricultural Products, which also showed modest movement. However, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent weakness in price momentum.
Recent Performance and Historical Comparison
Over the past year, Universal Starch Chem Allied has recorded a return of -28.47%, significantly underperforming the Sensex, which has shown a positive return of 7.93% over the same period. The stock’s 52-week high was Rs.208, highlighting the extent of the decline to the current low of Rs.125. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
The stock’s recent four-day decline of nearly 10% adds to the broader trend of subdued returns, reflecting challenges faced by the company in maintaining investor confidence and market valuation.
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Financial Metrics and Profitability Trends
Universal Starch Chem Allied’s quarterly net sales stood at Rs.97.14 crore in the most recent quarter, reflecting a decline of 18.9% compared to the previous four-quarter average. This contraction in sales revenue is a key factor contributing to the stock’s subdued performance.
Over the last five years, the company’s operating profits have shown a compound annual growth rate (CAGR) of 3.92%, indicating modest growth in earnings before interest and taxes. However, the company’s ability to service its debt remains constrained, with an average EBIT to interest ratio of 1.67, suggesting limited coverage of interest expenses by operating earnings.
Valuation and Capital Efficiency
Despite the challenges in revenue and profitability, Universal Starch Chem Allied presents a valuation that some may find attractive. The company’s return on capital employed (ROCE) is 9.4%, and it has an enterprise value to capital employed ratio of 0.9, indicating a relatively low valuation compared to its capital base. This valuation is below the average historical valuations of its peers within the Other Agricultural Products sector.
Interestingly, while the stock has generated a negative return of 28.47% over the past year, the company’s profits have risen by 351.8% during the same period. This divergence between profit growth and stock price performance may reflect market concerns about sustainability or other underlying factors.
Shareholding and Market Position
The majority of Universal Starch Chem Allied’s shares are held by promoters, indicating concentrated ownership. The company operates within the Other Agricultural Products industry and sector, which has seen mixed performance relative to broader market indices.
Holding Universal Starch Chem Allied from Other Agricultural Products? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Sector and Market Environment
The broader market environment remains positive, with the Sensex trading above its 50-day moving average and the 50-day average itself positioned above the 200-day moving average, signalling a bullish trend for the benchmark index. Mid-cap stocks have been leading gains, with the BSE Mid Cap index rising by 0.2% on the day.
In contrast, Universal Starch Chem Allied’s stock price trajectory diverges from this positive market momentum, reflecting company-specific factors that have weighed on investor sentiment and valuation.
Summary of Key Price and Performance Data
The stock’s current price of Rs.125 represents a significant decline from its 52-week high of Rs.208. The four-day consecutive fall has resulted in a near 10% loss in value during this short period. The stock’s position below all major moving averages further emphasises the prevailing downward trend.
While the company’s financial metrics show some areas of strength, such as ROCE and valuation ratios, the recent sales contraction and limited debt servicing capacity remain points of concern. The divergence between profit growth and stock price performance highlights the complexity of the company’s current market standing.
Investors and market participants will continue to monitor Universal Starch Chem Allied’s performance in the context of sector trends and broader market conditions.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
