Current Rating and Its Significance
MarketsMOJO currently assigns Assam Entrade Ltd a 'Sell' rating, reflecting a cautious stance towards the stock. This rating indicates that, based on a comprehensive evaluation of the company's fundamentals, valuation, financial trends, and technical indicators, the stock is expected to underperform relative to the broader market or its sector peers. Investors should consider this recommendation as a signal to either reduce exposure or avoid initiating new positions until the outlook improves.
Rating Update Context
The rating was revised from 'Strong Sell' to 'Sell' on 15 Oct 2025, accompanied by a notable increase in the Mojo Score from 28 to 44 points. This shift suggests some improvement in the company's outlook, though the overall assessment remains negative. It is important to note that all subsequent data and analysis are based on the most recent information available as of 06 January 2026, ensuring that investors receive an up-to-date perspective.
Here’s How Assam Entrade Ltd Looks Today
As of 06 January 2026, Assam Entrade Ltd remains a microcap player within the Non Banking Financial Company (NBFC) sector. The stock’s recent price movements show a mixed performance: a flat day change of 0.00%, a modest 1-month gain of 1.70%, and a more robust 3-month return of 13.26%. Over the past year, the stock has delivered a positive return of 17.11%, indicating some resilience despite underlying challenges.
Quality Assessment
The company’s quality grade is assessed as below average. This is primarily due to weak long-term fundamental strength, with an average Return on Equity (ROE) of just 2.88%. Such a low ROE suggests limited efficiency in generating profits from shareholders’ equity. Furthermore, operating profit has declined at an annualised rate of -7.53%, signalling deteriorating core business performance over time. These factors weigh heavily on the stock’s overall quality rating.
Valuation Considerations
Assam Entrade Ltd is currently considered very expensive relative to its fundamentals. The valuation grade reflects this, with a Price to Book Value ratio of 1.7, which is high compared to peers and historical averages. Despite the stock’s positive return of 11.50% over the past year, profits have fallen sharply by -49.2%, indicating that the market price may be disconnected from the company’s earnings reality. Investors should be cautious about paying a premium for a stock with declining profitability.
Financial Trend Analysis
The financial grade is flat, reflecting a lack of significant improvement or deterioration in recent results. The company reported flat results in September 2025, underscoring a period of stagnation rather than growth. This stagnation, combined with weak profitability metrics, suggests limited momentum in the company’s financial health at present.
Technical Outlook
Technically, Assam Entrade Ltd is mildly bullish. This indicates that short-term price trends show some positive momentum, which may be driven by market sentiment or speculative interest. However, this technical strength is not sufficient to offset the fundamental and valuation concerns that underpin the 'Sell' rating.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Implications for Investors
For investors, the 'Sell' rating on Assam Entrade Ltd signals caution. The combination of weak quality metrics, expensive valuation, flat financial trends, and only mild technical support suggests that the stock may face headwinds in delivering strong returns going forward. While the stock has shown some positive price appreciation over the past year, the underlying fundamentals do not support a confident bullish stance.
Sector and Market Context
Operating within the NBFC sector, Assam Entrade Ltd faces competitive pressures and regulatory challenges that can impact profitability and growth prospects. The microcap status of the company also implies higher volatility and liquidity risk compared to larger peers. Investors should weigh these sector-specific factors alongside the company’s individual performance when considering portfolio allocation.
Summary of Key Metrics as of 06 January 2026
The latest data shows:
- Return on Equity (ROE): 2.88%
- Operating profit growth: -7.53% annualised decline
- Price to Book Value: 1.7 (very expensive)
- Profit decline over past year: -49.2%
- Stock returns over 1 year: +17.11%
- Technical grade: mildly bullish
These figures collectively justify the current 'Sell' rating, highlighting the disconnect between market price and fundamental performance.
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Conclusion
Assam Entrade Ltd’s current 'Sell' rating by MarketsMOJO reflects a balanced assessment of its present-day fundamentals, valuation, financial trends, and technical outlook. While the stock has shown some price appreciation recently, the underlying business challenges and expensive valuation warrant a cautious approach. Investors should monitor the company’s future earnings trajectory and sector developments closely before considering any new investment.
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