Recent Price Movement and Market Context
On 21 Jan 2026, Yarn Syndicate Ltd recorded its lowest price in the last 52 weeks at Rs.12.2, continuing a three-day losing streak that has resulted in an 8.3% decline over this period. Despite this, the stock marginally outperformed its sector, which fell by 2.25% on the same day. The company’s shares are trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
The broader market environment has also been challenging. The Sensex opened 385.82 points lower and was trading at 81,637.41, down 0.66% on the day. The index has experienced a three-week consecutive decline, losing 4.81% in that span. While the Sensex’s 50-day moving average remains above its 200-day average, the index itself is trading below the 50-day average, indicating some near-term weakness.
Financial Performance and Fundamental Assessment
Yarn Syndicate Ltd’s financial results have contributed to the stock’s subdued performance. The company reported flat quarterly results for the period ending September 2025, with net sales declining by 12.9% to Rs.15.94 crores compared to the previous four-quarter average. The profit after tax (PAT) was a loss of Rs.6.85 crores, representing a dramatic fall of 17,025% relative to the prior quarterly average. Earnings before interest, depreciation, taxes and amortisation (EBITDA) also remained negative, with a PBDIT of Rs.-4.60 crores, the lowest recorded in recent quarters.
This financial strain is reflected in the company’s debt servicing capacity. Yarn Syndicate’s debt to EBITDA ratio stands at -1.00 times, indicating a weak ability to manage its debt obligations effectively. The company’s long-term fundamental strength is assessed as weak, which has influenced its recent downgrade in rating from Sell to Strong Sell as of 26 Mar 2025. The current Mojo Score of 12.0 and a Market Cap Grade of 4 further underscore the stock’s challenging position.
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Comparative Performance and Valuation Concerns
Over the last twelve months, Yarn Syndicate Ltd’s stock has depreciated by 62.85%, a stark contrast to the Sensex’s positive return of 7.65% during the same period. The stock’s 52-week high was Rs.44.8, highlighting the extent of the decline. This underperformance extends beyond the short term; the company has lagged behind the BSE500 index over the past three years, one year, and three months.
The stock’s valuation metrics also raise concerns. It is trading at levels considered risky relative to its historical averages, with negative EBITDA contributing to the cautious outlook. Despite the negative returns, the company’s profits have shown a 129% increase over the past year, though this has not translated into positive stock performance.
Shareholding Pattern and Sector Dynamics
The majority of Yarn Syndicate Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company operates within the Trading & Distributors sector, which itself has experienced a decline of 2.25% recently, reflecting broader sectoral pressures.
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Summary of Key Metrics
To summarise, Yarn Syndicate Ltd’s stock is currently trading at Rs.12.2, its lowest level in a year, following a sustained decline of over 60% in the last twelve months. The company’s financial results have shown contraction in sales and significant losses at the PAT and EBITDA levels. Its debt servicing capacity remains constrained, and the stock trades below all major moving averages. The sector has also faced downward pressure, though the stock’s recent underperformance exceeds that of its peers.
While the company’s profits have increased over the past year, this has not been sufficient to reverse the negative trend in share price or improve its fundamental grading. The majority non-institutional shareholding and the stock’s valuation at risky levels add further context to its current market position.
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