Anzen India Energy Yield Plus Trust is Rated Sell

Current Rating Overview

MarketsMOJO’s current rating of 'Sell' for Anzen India Energy Yield Plus Trust is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was revised on 15 Dec 2025, when the Mojo Score declined from 51 to 42, signalling a shift from a 'Hold' to a 'Sell' stance. This score reflects the company’s deteriorating fundamentals and valuation concerns amid a challenging financial environment.

Quality Assessment

As of 11 January 2026, the company’s quality grade is assessed as average. A critical metric underpinning this evaluation is the Return on Capital Employed (ROCE), which stands at a modest 2.77%. This low ROCE indicates that the company generates limited profitability relative to the capital invested, suggesting inefficiencies in capital utilisation. Additionally, the company has reported negative Return on Equity (ROE), reflecting losses and poor shareholder returns. These factors collectively weigh on the company’s quality profile and contribute to the cautious rating.

Valuation Considerations

Valuation remains a significant concern for investors. The stock is currently graded as 'very expensive' based on its valuation metrics. Despite trading at a discount relative to its peers’ historical averages, the company’s Enterprise Value to Capital Employed ratio is 1.3, which is high given the subdued profitability. The stock’s dividend yield is relatively attractive at 3.7%, but this yield must be weighed against the company’s earnings decline and financial risks. Over the past year, the stock has delivered a 16.06% return, yet profits have fallen by approximately 1%, signalling that price appreciation may not be supported by underlying earnings growth.

Financial Trend Analysis

The financial trend for Anzen India Energy Yield Plus Trust is flat, indicating stagnation in key financial metrics. The company’s ability to service debt is notably weak, with a Debt to EBITDA ratio of 4.33 times, highlighting elevated leverage and potential liquidity pressures. Interest expenses have surged, with a 122.68% increase in interest costs over the nine months ending September 2025, reaching ₹107.02 crores. Meanwhile, the quarterly Profit After Tax (PAT) has deteriorated sharply, falling by 601.5% to a loss of ₹8.05 crores compared to the previous four-quarter average. Operating profit to interest coverage has also declined to a low of 2.00 times, underscoring the strain on operational cash flows to meet interest obligations. These trends suggest financial stress and limited growth momentum.

Technical Outlook

The technical grade for the stock is not explicitly stated, but the recent price movements provide some insight. The stock has been relatively flat in the short term, with no change over the past day, week, or month. It has experienced a mild decline of 1.83% over three months but rebounded with a 3.33% gain over six months. Year-to-date performance is flat, indicating a lack of strong directional momentum. While the stock’s 16.06% return over the past year is positive, the absence of significant technical strength combined with fundamental weaknesses supports the cautious 'Sell' rating.

What This Rating Means for Investors

A 'Sell' rating from MarketsMOJO suggests that investors should consider reducing their exposure to Anzen India Energy Yield Plus Trust. The rating reflects concerns about the company’s profitability, high leverage, expensive valuation, and subdued financial trends. Investors are advised to weigh these factors carefully against their risk tolerance and portfolio objectives. While the stock has shown some price appreciation, the underlying financial challenges and limited capital efficiency indicate potential downside risks ahead.

Summary of Key Metrics as of 11 January 2026

• Mojo Score: 42.0 (Sell grade)


• Return on Capital Employed (ROCE): 2.77%


• Debt to EBITDA Ratio: 4.33 times


• Interest Expense (9M Sep 2025): ₹107.02 crores (up 122.68%)


• Quarterly PAT: -₹8.05 crores (down 601.5%)


• Operating Profit to Interest Coverage (Quarterly): 2.00 times


• Enterprise Value to Capital Employed: 1.3


• Dividend Yield: 3.7%


• Stock Returns: 1 Year +16.06%, 6 Months +3.33%, 3 Months -1.83%

Investor Considerations and Outlook

Given the current financial landscape, investors should approach Anzen India Energy Yield Plus Trust with caution. The company’s low capital efficiency and high debt burden raise concerns about its ability to generate sustainable returns. The flat financial trend and weak profitability metrics suggest limited near-term growth prospects. Although the stock’s dividend yield offers some income appeal, the underlying losses and interest cost pressures may constrain future dividend sustainability.

From a valuation standpoint, the stock’s premium relative to its capital employed and the lack of robust earnings growth imply that the current price may not fully reflect the risks involved. Technical indicators do not signal strong momentum, reinforcing the need for prudence.

Investors seeking exposure to the energy or trust sectors might consider alternative opportunities with stronger fundamentals and healthier financial trends. Monitoring the company’s quarterly results and debt servicing capabilities will be crucial for reassessing the investment thesis in the coming months.

Conclusion

In summary, Anzen India Energy Yield Plus Trust’s 'Sell' rating by MarketsMOJO as of 15 Dec 2025 is supported by its current financial and operational profile as of 11 January 2026. The combination of average quality, very expensive valuation, flat financial trends, and subdued technical signals suggests that the stock may face headwinds ahead. Investors should carefully evaluate these factors in the context of their portfolios and consider risk mitigation strategies accordingly.

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