Amal Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO's Sell rating for Amal Ltd indicates a cautious stance towards the stock, suggesting that investors should consider reducing exposure or avoiding new purchases at this time. This recommendation is grounded in a comprehensive evaluation of the company's quality, valuation, financial trend, and technical indicators. While the rating was assigned on 01 December 2025, it remains relevant today given the company's ongoing fundamentals and market behaviour as of 14 January 2026.

Quality Assessment

As of 14 January 2026, Amal Ltd holds an average quality grade. This reflects a stable but unexceptional operational and financial profile. The company’s return on equity (ROE) stands at a robust 34.2%, signalling efficient use of shareholder capital. However, the average quality grade suggests that while profitability is strong, other factors such as earnings consistency, management effectiveness, or competitive positioning may not be sufficiently compelling to warrant a more favourable rating.

Valuation Considerations

The valuation grade for Amal Ltd is classified as very expensive. Currently, the stock trades at a price-to-book (P/B) ratio of 7, which is significantly higher than typical benchmarks for the specialty chemicals sector. Despite this, the stock is trading at a discount relative to its peers’ historical valuations, indicating some relative value within its segment. The company’s price-to-earnings-growth (PEG) ratio is an exceptionally low 0.1, reflecting rapid profit growth that may partially justify the elevated valuation. Nevertheless, the high absolute valuation level remains a key concern for investors, limiting upside potential and increasing risk.

Financial Trend and Performance

Financially, Amal Ltd shows a positive trend as of 14 January 2026. Over the past year, the company’s profits have surged by an impressive 349.9%, a remarkable growth rate that underscores strong operational momentum. Correspondingly, the stock has delivered a 21.06% return over the same period, outperforming many peers in the specialty chemicals sector. However, shorter-term returns have been more volatile, with a 3-month decline of 34.77% and a 6-month drop of 33.53%, reflecting recent market pressures or sector-specific challenges. Year-to-date, the stock has declined by 5.16%, and the most recent daily change was a modest fall of 0.39%.

Technical Analysis

The technical grade for Amal Ltd is mildly bearish as of the current date. This suggests that the stock’s price momentum and chart patterns are showing signs of weakness or downward pressure. Such technical signals often reflect investor sentiment and can precede further price corrections. For investors, this mild bearishness advises caution, especially when combined with the stock’s high valuation and average quality metrics.

Additional Market Insights

Amal Ltd is classified as a microcap company within the specialty chemicals sector. Despite its strong profit growth and decent returns, domestic mutual funds hold only a negligible 0.03% stake in the company. Given that mutual funds typically conduct thorough research and favour companies with sustainable business models and attractive valuations, this limited institutional interest may indicate reservations about the stock’s price or business fundamentals.

Overall, the Sell rating reflects a balanced view that, while Amal Ltd demonstrates strong profit growth and reasonable returns, the elevated valuation, average quality, and technical weakness present notable risks. Investors should weigh these factors carefully when considering their portfolio exposure to this stock.

What the Sell Rating Means for Investors

For investors, a Sell rating from MarketsMOJO is a signal to consider reducing holdings or avoiding new investments in Amal Ltd at the current juncture. The rating is not a call for immediate liquidation but rather a cautionary stance based on the company’s valuation and technical outlook. Investors should monitor the stock’s fundamentals and market conditions closely, especially given the company’s strong profit growth which could, over time, improve its quality and valuation metrics.

Sector and Market Context

Amal Ltd operates within the specialty chemicals sector, a space often characterised by cyclical demand and sensitivity to raw material costs. The company’s microcap status means it may be more susceptible to liquidity constraints and market volatility compared to larger peers. The current market environment, with mixed sector performance and cautious investor sentiment, further underscores the need for prudence when considering exposure to such stocks.

Summary of Key Metrics as of 14 January 2026

To summarise, the key data points supporting the current Sell rating include:

• Mojo Score: 41.0, reflecting a Sell grade


• Return on Equity: 34.2%, indicating strong profitability


• Price to Book Value: 7, signalling very expensive valuation


• Profit growth over one year: +349.9%


• Stock returns over one year: +21.06%


• Technical grade: mildly bearish


• Minimal institutional ownership by domestic mutual funds (0.03%)

These metrics collectively suggest that while Amal Ltd has demonstrated impressive profit growth and delivered positive returns over the past year, the stock’s high valuation and technical signals warrant a cautious approach.

Looking Ahead

Investors should continue to monitor Amal Ltd’s quarterly results, sector developments, and broader market trends. Improvements in quality metrics or a correction in valuation could alter the stock’s outlook favourably. Conversely, sustained technical weakness or valuation pressures may reinforce the current Sell stance.

In conclusion, the Sell rating assigned to Amal Ltd by MarketsMOJO as of 01 December 2025 remains pertinent today, reflecting a comprehensive assessment of the company’s current fundamentals and market position as of 14 January 2026.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →