Stock Price Movement and Market Context
On 21 Nov 2025, Universal Starch Chem Allied’s share price touched an intraday low of Rs.128, representing a fall of 4.44% on the day. The stock opened with a gap down of 2.2%, continuing a three-day losing streak that has resulted in a cumulative decline of 7.06% over this period. This recent price action places the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downward trend.
In comparison, the broader Sensex index opened lower at 85,347.40 points, down 0.33% from the previous close, but remains close to its 52-week high of 85,801.70, trading just 0.53% below that peak. The Sensex continues to trade above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish market environment contrasting with Universal Starch Chem Allied’s performance.
Performance Over the Past Year
Universal Starch Chem Allied’s one-year return stands at -24.88%, a stark contrast to the Sensex’s positive return of 10.63% 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.128. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index across one-year, three-month, and three-year timeframes.
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Financial and Operational Indicators
The company’s recent quarterly results for September 2025 reveal net sales of Rs.97.14 crore, reflecting a decline of 18.9% compared to the average of the previous four quarters. This contraction in sales contributes to the subdued financial performance observed in recent periods.
Over the last five years, Universal Starch Chem Allied has recorded a compound annual growth rate (CAGR) of 3.92% in operating profits, indicating modest growth. However, the company’s ability to service its debt remains constrained, with an average EBIT to interest coverage ratio of 1.67, suggesting limited buffer to meet interest obligations comfortably.
Valuation and Capital Efficiency
Despite the challenges, the company’s return on capital employed (ROCE) stands at 9.4%, which is considered attractive within its sector. Additionally, the enterprise value to capital employed ratio is 0.9, indicating that the stock is trading at a discount relative to its capital base. This valuation is lower than the historical averages observed among its peers in the Other Agricultural Products industry.
Interestingly, while the stock price has declined by nearly 25% over the past year, the company’s profits have increased by 351.8% during the same period. This divergence suggests a complex dynamic between market valuation and underlying profitability metrics. The price-to-earnings-growth (PEG) ratio is reported as zero, reflecting the current relationship between earnings growth and valuation.
Shareholding and Sector Placement
Universal Starch Chem Allied operates within the Other Agricultural Products sector, a segment characterised by diverse product lines and varying market conditions. The majority shareholding is held by promoters, indicating concentrated ownership and potential influence over strategic decisions.
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Summary of Key Market and Company Metrics
To summarise, Universal Starch Chem Allied’s stock has experienced a notable decline to Rs.128, its lowest level in the past 52 weeks. The stock’s performance contrasts with the broader market’s relative strength, as the Sensex remains near its yearly high. The company’s financial indicators show subdued sales growth and constrained debt servicing capacity, while valuation metrics suggest the stock is trading at a discount compared to peers.
These factors collectively contribute to the current market assessment of Universal Starch Chem Allied, reflecting a period of subdued investor confidence and challenging market conditions for the stock within its sector.
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