Quality Assessment: Mixed Financial Performance Amid Operational Struggles
Antony Waste Handling Cell Ltd operates within the Other Utilities sector, classified under Miscellaneous industries. The company’s quality metrics reveal a complex picture. While management efficiency remains robust, evidenced by a strong Return on Capital Employed (ROCE) of 16.42%, recent quarterly financial results have been disappointing. The Q2 FY25-26 operating profit to interest ratio has deteriorated to a low of 3.23 times, signalling increased pressure on earnings to cover interest obligations.
Profit after tax (PAT) for the quarter stood at ₹13.65 crores, marking a decline of 13.2% compared to the previous four-quarter average. Additionally, the debtors turnover ratio for the half-year period has fallen to 3.12 times, indicating slower collection efficiency. These factors collectively suggest that while the company maintains operational competence, its recent financial trend is negative, raising concerns about sustainable growth.
Valuation: Attractive Yet Reflective of Market Caution
From a valuation standpoint, Antony Waste Handling Cell Ltd presents an intriguing case. The company’s ROCE of 12.2% combined with an Enterprise Value to Capital Employed (EV/CE) ratio of 1.7 suggests that the stock is trading at a discount relative to its historical peer valuations. This discount may appeal to value investors seeking exposure to the Other Utilities sector at a lower entry price.
However, the stock’s market capitalisation grade remains modest at 3, reflecting its small-cap status and limited liquidity. The share price currently trades at ₹490.00, down slightly from the previous close of ₹492.70, and significantly below its 52-week high of ₹692.05. This subdued valuation is partly justified by the company’s underperformance over the past year, with a negative return of 22.99% compared to the BSE500’s positive 5.68% return.
Momentum just kicked in! This Small Cap from the Auto - Trucks sector entered our list with explosive short-term signals. Catch the wave while it's still building!
- - Fresh momentum detected
- - Explosive short-term signals
- - Early wave positioning
Financial Trend: Negative Growth with Debt Under Control
Examining the financial trend, Antony Waste Handling Cell Ltd has experienced a subdued growth trajectory. Operating profit has grown at an annualised rate of just 9.66% over the past five years, which is modest for a company in the utilities sector. The latest quarterly results reinforce this trend, with profits falling by 7.7% over the last year.
Despite these challenges, the company demonstrates a strong ability to service its debt, with a low Debt to EBITDA ratio of 1.45 times. This prudent leverage management provides some cushion against financial stress, although the declining profitability and slower debtor turnover remain areas of concern for investors.
Technical Analysis: Shift from Bearish to Mildly Bearish Signals
The primary catalyst for the upgrade from Strong Sell to Sell is the improvement in technical indicators. The technical grade has shifted from bearish to mildly bearish, reflecting a subtle change in market momentum. Weekly Moving Average Convergence Divergence (MACD) readings have turned mildly bullish, although monthly MACD remains mildly bearish, indicating mixed signals across timeframes.
Relative Strength Index (RSI) on both weekly and monthly charts shows no clear signal, while Bollinger Bands suggest a bearish trend on the weekly scale and mildly bearish on the monthly. Daily moving averages remain mildly bearish, and the Know Sure Thing (KST) indicator is bearish weekly and mildly bearish monthly. Dow Theory and On-Balance Volume (OBV) indicators show no definitive trend, underscoring the market’s indecision.
These technical nuances suggest that while the stock is not yet in a strong recovery phase, the worst of the downtrend may be stabilising, prompting a cautious upgrade in rating.
Comparative Performance: Underperformance Against Benchmarks
Over the last year, Antony Waste Handling Cell Ltd has significantly underperformed the broader market. The stock posted a negative return of 22.99%, in stark contrast to the Sensex’s 7.85% gain and the BSE500’s 5.68% rise. However, over longer horizons, the company has delivered mixed results. It outperformed the Sensex over three years with a 56.67% return versus 41.57%, but lagged over five years with a 34.26% gain compared to the Sensex’s 76.39%.
This uneven performance highlights the stock’s volatility and the importance of monitoring both short-term technical signals and long-term fundamentals when considering investment decisions.
Antony Waste Handling Cell Ltd or something better? Our SwitchER feature analyzes this small-cap Other Utilities stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Outlook and Investment Considerations
Antony Waste Handling Cell Ltd’s upgrade to a Sell rating reflects a cautious optimism driven by technical improvements, yet tempered by ongoing financial and operational challenges. Investors should weigh the company’s strong management efficiency and debt servicing capability against its declining profitability and underwhelming market performance.
The stock’s valuation discount may offer an entry point for value-oriented investors, but the modest growth outlook and mixed technical signals suggest that patience and close monitoring are warranted. Given the company’s small-cap status and sector-specific risks, a balanced approach incorporating both fundamental and technical analysis is advisable.
Majority ownership by promoters provides some stability, but the stock’s recent price volatility and negative returns over the past year highlight the need for careful risk assessment.
Summary of Ratings and Scores
As of 5 January 2026, Antony Waste Handling Cell Ltd holds a Mojo Score of 34.0 with a Mojo Grade of Sell, upgraded from Strong Sell. The market cap grade remains at 3, reflecting its small-cap classification. Technical indicators have improved from bearish to mildly bearish, while financial trends remain negative. Valuation metrics suggest the stock trades at a discount, but operational challenges persist.
Investors should consider these multi-dimensional factors when evaluating Antony Waste Handling Cell Ltd as part of their portfolio strategy.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →
