Rating Overview and Context
On 06 October 2025, ASM Technologies Ltd’s rating was revised from 'Buy' to 'Hold' by MarketsMOJO, accompanied by a decrease in its Mojo Score from 75 to 68. This adjustment reflects a recalibration of the stock’s outlook based on a comprehensive assessment of its quality, valuation, financial trend, and technical indicators. It is important to note that while the rating change occurred in early October, the data and analysis presented here are current as of 21 January 2026, ensuring investors receive the latest insights.
Here’s How ASM Technologies Ltd Looks Today
As of 21 January 2026, ASM Technologies Ltd remains a small-cap player in the Computers - Software & Consulting sector. The stock has experienced notable volatility recently, with a one-day decline of 1.65%, a one-week drop of 6.06%, and a one-month fall of 14.14%. Over the last three months, the stock has corrected by 26.18%, while the six-month decline stands at 13.46%. Year-to-date, the stock is down 17.69%. Despite these short-term setbacks, the stock has delivered a remarkable 92.87% return over the past year, significantly outperforming the broader market benchmark, BSE500, which returned 6.32% in the same period.
Quality Assessment
The company’s quality grade is assessed as average. ASM Technologies Ltd has demonstrated healthy long-term growth, with net sales increasing at an annualised rate of 33.61% and operating profit growing at an even more impressive 49.25%. The firm has consistently declared positive results for six consecutive quarters, underscoring operational stability. Key metrics such as operating profit to interest ratio stand at a robust 14.31 times, while the return on capital employed (ROCE) for the half-year is a strong 25.23%. These figures indicate a solid operational foundation and efficient capital utilisation, which are positive indicators for investors seeking quality in their holdings.
Valuation Considerations
Valuation remains a critical factor in the current rating. ASM Technologies Ltd is classified as very expensive, trading at a price-to-book value of 13.6, which is high relative to typical benchmarks. The return on equity (ROE) is 18.8%, reflecting strong profitability, but the elevated valuation suggests that much of this performance is already priced into the stock. Interestingly, despite the high valuation, the stock trades at a discount compared to its peers’ average historical valuations, which may offer some relative comfort. The price/earnings to growth (PEG) ratio is exceptionally low at 0.1, signalling that the stock’s earnings growth is not fully reflected in its price, a nuance that investors should weigh carefully.
Financial Trend and Performance
The financial grade for ASM Technologies Ltd is outstanding, supported by robust growth and profitability metrics. The company’s net sales for the latest quarter reached a record Rs 154.46 crores, with a quarter-on-quarter sales growth of 25.66%. Profitability has surged, with profits rising by an extraordinary 805.7% over the past year. This rapid expansion in earnings, combined with consistent positive quarterly results, highlights a strong upward financial trajectory. Such performance metrics are encouraging for investors looking for companies with solid growth momentum and improving financial health.
Technical Analysis
From a technical perspective, the stock is mildly bullish. While recent price corrections have been notable, the overall trend suggests some underlying strength. The stock’s ability to outperform the market over the last year by a wide margin supports this mild bullish stance. However, the recent short-term declines indicate that investors should remain cautious and monitor price action closely for confirmation of sustained upward momentum.
What the 'Hold' Rating Means for Investors
The 'Hold' rating assigned to ASM Technologies Ltd by MarketsMOJO suggests a balanced outlook. It indicates that while the stock exhibits strong financial performance and growth potential, its current valuation and recent price volatility warrant a cautious approach. Investors are advised to maintain their existing positions rather than initiate new purchases or sales at this time. The rating reflects a view that the stock is fairly valued relative to its prospects and that further upside may be limited in the near term without additional catalysts.
Summary
In summary, ASM Technologies Ltd presents a compelling growth story with outstanding financial trends and solid quality metrics. However, its very expensive valuation and recent price corrections temper enthusiasm, resulting in a 'Hold' rating. Investors should consider these factors carefully, recognising the stock’s strong long-term growth potential alongside the risks posed by its current price level and market fluctuations.
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Investor Takeaway
For investors, the current 'Hold' rating on ASM Technologies Ltd signals a need for prudence. The company’s outstanding financial growth and market-beating returns over the past year are impressive, yet the stock’s elevated valuation and recent price softness suggest that the risk-reward balance is currently neutral. Those holding the stock may choose to retain their positions to benefit from ongoing growth, while prospective buyers might wait for more attractive valuations or clearer technical signals before committing fresh capital.
Sector and Market Context
Operating within the Computers - Software & Consulting sector, ASM Technologies Ltd’s performance stands out in a competitive landscape. The sector has witnessed varied performance amid evolving technology trends and market dynamics. ASM’s ability to sustain high growth rates and profitability in this environment is noteworthy. However, investors should also consider broader sector valuations and market conditions when evaluating the stock’s prospects.
Conclusion
ASM Technologies Ltd’s current 'Hold' rating by MarketsMOJO reflects a nuanced view that balances strong financial fundamentals and growth with valuation concerns and recent price volatility. As of 21 January 2026, the stock remains a compelling story for long-term investors who can tolerate short-term fluctuations, but it does not currently present a clear buy opportunity at prevailing prices. Continuous monitoring of the company’s financial results, valuation metrics, and technical trends will be essential for informed investment decisions going forward.
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