Rating Overview and Context
On 13 November 2025, MarketsMOJO revised its rating for ACS Technologies Ltd from 'Sell' to 'Hold', reflecting a significant improvement in the company’s overall mojo score, which rose by 20 points from 44 to 64. This shift indicates a more balanced outlook on the stock, suggesting that while it may not be a strong buy, it is no longer considered a sell. The 'Hold' rating implies that investors should maintain their current positions and monitor the stock closely for further developments.
Here’s How ACS Technologies Ltd Looks Today
As of 18 February 2026, the company’s financial metrics and market performance present a nuanced picture. The mojo score of 64.0 places ACS Technologies Ltd in the 'Hold' category, signalling moderate confidence in its prospects. The stock’s day change stands at +0.65%, with a one-month decline of -9.98% but a robust six-month gain of +63.60%. Year-to-date, the stock has slightly declined by -0.93%, while the one-year return is not available. These figures suggest some volatility but also highlight recent positive momentum.
Quality Assessment
The quality grade for ACS Technologies Ltd is assessed as average. This reflects a stable operational performance with some areas of strength and others requiring attention. The company has demonstrated consistent growth in net sales, with a notable 42.16% increase reported in the December 2025 quarter. This growth is supported by the highest quarterly net sales of ₹67.14 crores and a PBDIT of ₹7.32 crores, marking the company’s strongest quarterly operating profit to net sales ratio at 10.90%. These figures indicate operational efficiency and a capacity to generate profits from sales, which are positive indicators for investors.
Valuation Considerations
Despite the positive sales and profit trends, ACS Technologies Ltd is currently considered expensive based on valuation metrics. The company’s return on capital employed (ROCE) stands at 5.3%, which is modest relative to its valuation multiple. The enterprise value to capital employed ratio is 2, suggesting that the market is pricing the stock at a premium compared to the capital invested in the business. This elevated valuation may reflect expectations of future growth but also warrants caution, as it limits the margin of safety for investors.
Financial Trend Analysis
The financial grade for ACS Technologies Ltd is very positive, underpinned by strong recent results and improving profitability. The company has declared positive results for two consecutive quarters, signalling a favourable earnings trajectory. Profits have increased by 9% over the past year, demonstrating resilience despite market challenges. However, it is important to note that the stock has underperformed the broader market over the last year, which may temper investor enthusiasm.
Technical Outlook
From a technical perspective, the stock exhibits a mildly bullish trend. The recent six-month return of +63.60% supports this view, indicating that the stock has gained significant ground in the medium term. However, shorter-term performance has been mixed, with a one-month decline of nearly 10%. This suggests some volatility and potential resistance levels that investors should monitor closely. The technical grade reflects cautious optimism, recommending a watchful approach rather than aggressive accumulation.
Additional Market Insights
One notable concern is the reduction in promoter confidence, as promoters have decreased their stake by 0.72% in the previous quarter, now holding 43.37% of the company. This decline in promoter holding may signal reduced conviction in the company’s near-term prospects, which could influence market sentiment. Investors should consider this factor alongside the company’s operational and financial performance when making decisions.
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What the Hold Rating Means for Investors
The 'Hold' rating assigned to ACS Technologies Ltd by MarketsMOJO suggests that the stock currently offers a balanced risk-reward profile. Investors holding the stock are advised to maintain their positions, as the company shows signs of operational improvement and financial strength, but valuation concerns and promoter stake reduction warrant caution. New investors might consider waiting for clearer signals of sustained growth or a more attractive valuation before initiating positions.
Summary of Key Metrics as of 18 February 2026
To summarise, ACS Technologies Ltd’s key metrics as of today include:
- Mojo Score: 64.0 (Hold)
- Net Sales Growth (Quarterly): +42.16%
- Highest Quarterly Net Sales: ₹67.14 crores
- Highest Quarterly PBDIT: ₹7.32 crores
- Operating Profit to Net Sales Ratio: 10.90%
- Return on Capital Employed (ROCE): 5.3%
- Enterprise Value to Capital Employed: 2
- Promoter Holding: 43.37% (down 0.72% from previous quarter)
- Stock Returns: 1D +0.65%, 1M -9.98%, 3M +4.48%, 6M +63.60%, YTD -0.93%
These figures provide a comprehensive snapshot of the company’s current standing and help investors gauge the stock’s potential within their portfolios.
Looking Ahead
Investors should continue to monitor ACS Technologies Ltd’s quarterly results and market developments closely. The company’s ability to sustain sales growth and improve profitability will be critical in justifying its current valuation. Additionally, any changes in promoter confidence or shifts in technical momentum could influence the stock’s trajectory. For now, the 'Hold' rating reflects a cautious but constructive stance, encouraging investors to stay informed and patient.
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