Acme Resources Ltd is Rated Strong Sell

Understanding the Current Rating

The Strong Sell rating assigned to Acme Resources Ltd indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market and its peers. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment appeal and risk profile.

Quality Assessment

As of 06 January 2026, Acme Resources Ltd’s quality grade is considered below average. The company’s long-term fundamental strength remains weak, with an average Return on Equity (ROE) of just 3.37%. This low ROE suggests that the company is generating limited returns on shareholders’ equity, which is a critical measure of operational efficiency and profitability. Furthermore, the company has experienced negative growth in net sales, declining at an annual rate of -5.35%, while operating profit has contracted even more sharply at -12.38% per annum. These figures highlight ongoing challenges in sustaining revenue growth and profitability, which weigh heavily on the quality assessment.

Valuation Considerations

Currently, Acme Resources Ltd is classified as very expensive relative to its fundamentals. The stock trades at a Price to Book (P/B) ratio of approximately 0.7, which is high given the company’s subdued profitability and flat financial performance. This valuation premium is notable because it contrasts with the company’s weak earnings trajectory and below-average returns. Over the past year, the stock has delivered a negative return of -18.88%, underperforming the broader market indices such as the BSE500, which has generated positive returns of 5.68% over the same period. The disparity between valuation and performance suggests that investors are paying a premium despite the company’s deteriorating fundamentals, which is a key factor behind the Strong Sell rating.

Financial Trend Analysis

The financial trend for Acme Resources Ltd is currently flat, indicating stagnation in key financial metrics. The latest quarterly results for September 2025 show a significant decline in profit before tax (PBT), which fell by 68.49% to ₹0.69 crore. This sharp drop in profitability underscores the company’s ongoing operational challenges. Additionally, the company’s net sales and operating profit have been shrinking over the long term, reflecting a lack of growth momentum. The flat financial trend suggests that the company has not been able to reverse these negative patterns, which further supports the cautious investment stance.

Technical Outlook

From a technical perspective, Acme Resources Ltd is rated bearish. The stock’s price performance over various time frames confirms this outlook: it has declined by 0.82% over the past week, 3.12% over the past month, and 7.78% over the past six months. The year-to-date return is also negative at -0.57%, while the one-year return stands at -18.88%. This consistent downward trend in price action indicates weak investor sentiment and selling pressure, which aligns with the Strong Sell rating. The bearish technical grade suggests that the stock may continue to face resistance in regaining positive momentum in the near term.

Market Comparison and Investor Implications

When compared to the broader market, Acme Resources Ltd has underperformed significantly. While the BSE500 index has delivered a positive return of 5.68% over the past year, the stock has generated a negative return of -18.88%. This underperformance highlights the relative weakness of the company’s stock and reinforces the rationale behind the Strong Sell rating. For investors, this rating serves as a cautionary signal to avoid initiating or increasing exposure to the stock until there is clear evidence of improvement in the company’s fundamentals, valuation, financial trends, and technical indicators.

Summary for Investors

In summary, Acme Resources Ltd’s current Strong Sell rating reflects a combination of weak quality metrics, expensive valuation relative to fundamentals, flat financial trends, and bearish technical signals. As of 06 January 2026, the company continues to face significant headwinds, including declining sales, shrinking profits, and underwhelming returns to shareholders. The stock’s persistent underperformance relative to the broader market further emphasises the risks involved. Investors should carefully consider these factors and exercise caution, favouring more robust opportunities until Acme Resources Ltd demonstrates a clear turnaround in its financial and operational performance.

About MarketsMOJO Ratings

MarketsMOJO’s rating system integrates multiple dimensions of stock analysis to provide a holistic view of investment potential. The Strong Sell rating is assigned when a stock exhibits multiple weaknesses across quality, valuation, financial trends, and technical outlook, signalling that it is likely to underperform and may carry elevated risk. This rating helps investors make informed decisions by highlighting stocks that currently lack favourable investment characteristics.

Key Metrics at a Glance (As of 06 January 2026)

• Mojo Score: 16.0 (Strong Sell)


• Market Capitalisation: Microcap


• Return on Equity (ROE): 3.37%


• Net Sales Growth (Annual): -5.35%


• Operating Profit Growth (Annual): -12.38%


• Price to Book Value: 0.7 (Very Expensive)


• Profit Before Tax (Sep 2025 Quarter): ₹0.69 crore (-68.49%)


• Stock Returns: 1 Year -18.88%, 6 Months -7.78%, 1 Month -3.12%


• Sector: Non Banking Financial Company (NBFC)

Investors should monitor these metrics closely for any signs of improvement that could alter the stock’s outlook.

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