Stock Price Movement and Market Context
On 20 Jan 2026, Vinyl Chemicals (I) Ltd recorded an intraday low of Rs.212, down 2.77% from its previous close, while the intraday high stood at Rs.223, a modest 2.27% gain. The stock’s day change was negative at -1.40%, aligning with the broader sector’s decline of -2.74%. Over the last three days, the stock has lost 7.24% in value, underscoring a persistent bearish sentiment.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downtrend. This technical positioning suggests that the stock has yet to find a stable support level in the near term.
In comparison, the Sensex opened flat but later declined by 611.84 points (-0.78%) to close at 82,595.54, remaining 4.31% below its 52-week high of 86,159.02. The benchmark index has experienced a three-week consecutive fall, losing 3.69% in that period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, signalling mixed technical signals for the broader market.
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Financial Performance and Valuation Metrics
Vinyl Chemicals (I) Ltd’s one-year performance has been notably weak, with the stock declining by 35.74%, in stark contrast to the Sensex’s positive return of 7.18% over the same period. The stock’s 52-week high was Rs.356.90, highlighting the extent of the recent correction.
The company’s operating profit has grown at an annualised rate of 19.54% over the past five years, which, while positive, has not translated into consistent shareholder returns. The latest six-month period ending September 2025 saw a decline in profit after tax (PAT) by 27.06%, with PAT reported at Rs.7.33 crores. This contraction in profitability has contributed to the stock’s subdued performance.
Return on Capital Employed (ROCE) for the half-year period is at a low 21.94%, while the Debtors Turnover Ratio stands at 0.69 times, indicating slower collection cycles. These metrics reflect operational pressures that have weighed on the company’s financial health.
Despite these challenges, the company maintains a low average debt-to-equity ratio of zero, signalling a conservative capital structure. Return on Equity (ROE) is relatively attractive at 16.2%, and the stock trades at a Price to Book Value of 3.3, suggesting valuation levels that are fair when compared to historical peer averages.
Sector and Market Positioning
Vinyl Chemicals operates within the miscellaneous industry and sector, where trading activity has declined by 2.74% today. The stock’s performance has consistently lagged behind the BSE500 index over the past three years, with annual returns underperforming the benchmark in each period. Over the last year, the stock generated a negative return of 34.58%, further emphasising its relative weakness.
The company’s promoter group remains the majority shareholder, maintaining control over strategic decisions. The stock currently offers a dividend yield of 3.18%, which is relatively high given the prevailing price levels, providing some income cushion for shareholders.
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Mojo Score and Ratings
MarketsMOJO assigns Vinyl Chemicals (I) Ltd a Mojo Score of 28.0, categorising it as a Strong Sell. This rating was upgraded from a Sell to Strong Sell on 18 Aug 2025, reflecting deteriorating fundamentals and market sentiment. The company’s market capitalisation grade is rated 4, indicating a mid-sized market cap within its sector.
The downgrade in rating aligns with the company’s consistent underperformance, declining profitability, and technical weakness. These factors collectively contribute to the cautious stance reflected in the Mojo Grade.
Summary of Key Metrics
To summarise, Vinyl Chemicals (I) Ltd’s recent fall to Rs.212 marks a significant 52-week low, driven by a combination of subdued profit growth, declining returns, and technical weakness. The stock’s performance over the past year has been markedly below benchmark indices, and its financial ratios indicate areas of concern, particularly in profitability and asset turnover.
While the company maintains a conservative debt profile and offers a reasonable dividend yield, these positives have not been sufficient to offset the broader challenges faced by the stock in the current market environment.
Conclusion
Vinyl Chemicals (I) Ltd’s decline to its 52-week low price of Rs.212 reflects ongoing pressures in its financial and market performance. The stock’s technical indicators and fundamental metrics suggest that it remains in a phase of weakness relative to its peers and the broader market. Investors and analysts will continue to monitor the company’s financial disclosures and market developments for further clarity on its trajectory.
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