Recent Price Movement and Market Performance
Mysore Petro Chemicals Ltd closed at ₹101.10 on 13-Jan, down by ₹3.45 or 3.3% from the previous session. This decline continues a four-day losing streak during which the stock has fallen by 6.91%. The stock opened with a gap down of 3.11% and touched an intraday low at ₹101.10, hovering just 2.08% above its 52-week low of ₹99. This proximity to the annual low signals sustained selling pressure and investor caution.
Compared to the broader market, the stock has underperformed significantly. Over the past week, it declined by 4.89%, while the Sensex fell by only 1.69%. Year-to-date, the stock is down 6.00%, markedly worse than the Sensex’s 1.87% loss. Over the last year, the disparity is even more pronounced, with Mysore Petro Chemicals Ltd posting a steep 29.77% loss against the Sensex’s 9.56% gain. This underperformance extends to longer time horizons as well, with the stock lagging the BSE500 index over one and three years.
Technical Indicators and Trading Activity
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 bearish trend. Despite the price weakness, investor participation has increased, as evidenced by a 653.05% surge in delivery volume on 12-Jan compared to the five-day average. This heightened activity suggests that while some investors may be exiting positions, others could be accumulating at lower levels, though the overall sentiment remains negative.
Momentum building strong! This Mid Cap from NBFC is on our MomentumNow radar. Other investors are catching on – will you join?
- - Building momentum strength
- - Investor interest growing
- - Limited time advantage
Fundamental Weaknesses Driving the Decline
The primary reason behind the stock’s decline is the company’s weak long-term fundamentals. Mysore Petro Chemicals Ltd has been reporting operating losses, which severely undermine its financial health. The company’s ability to service debt is poor, with an average EBIT to interest ratio of -6.61, indicating that earnings before interest and tax are insufficient to cover interest expenses. This financial strain is further reflected in a negative return on capital employed (ROCE), signalling inefficient use of capital and weak profitability.
Recent financial results have been disappointing. For the six months ending September 2025, the company posted a net loss after tax (PAT) of ₹-0.30 crore, representing a decline of 46.68%. Quarterly net sales have also been low, with the latest figure at ₹5.03 crore, the lowest in recent periods. The half-year ROCE stands at a mere 3.30%, underscoring the company’s struggle to generate adequate returns on investments.
Moreover, the stock is considered risky due to negative EBITDA, which raises concerns about operational cash flow and sustainability. Despite a 65.7% rise in profits over the past year, the stock’s price has fallen sharply, resulting in a low PEG ratio of 0.1. This disconnect between profit growth and share price performance suggests that investors remain wary of the company’s prospects.
Mysore Petro or something better? Our SwitchER feature analyzes this Microcap Miscellaneous stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Long-Term Underperformance and Investor Sentiment
Over the medium to long term, Mysore Petro Chemicals Ltd has consistently underperformed key market indices. While the stock has delivered a positive 77.21% return over five years, this is only marginally better than the Sensex’s 68.97% gain and is overshadowed by negative returns over the last one and three years. The persistent underperformance relative to benchmarks and sector peers has likely contributed to subdued investor confidence.
Additionally, the stock’s liquidity profile is adequate, allowing for reasonable trade sizes, but this has not translated into price stability or upward momentum. The majority shareholding by promoters has not been sufficient to inspire market optimism amid ongoing losses and weak operational metrics.
In summary, Mysore Petro Chemicals Ltd’s share price decline is primarily driven by its weak financial fundamentals, negative earnings, poor debt servicing capacity, and sustained underperformance against market benchmarks. Despite some increase in trading volumes, the prevailing sentiment remains cautious, reflecting concerns over the company’s ability to return to profitability and generate shareholder value in the near term.
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 →
