Understanding the Current Rating
The Strong Sell rating assigned to Bodhtree Consulting Ltd indicates a cautious stance for investors, suggesting that the stock currently exhibits significant risks and challenges. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment appeal and risk profile.
Quality Assessment
As of 24 December 2025, Bodhtree Consulting Ltd’s quality grade is classified as below average. The company continues to report operating losses, which undermines its long-term fundamental strength. Its ability to service debt remains weak, with an average EBIT to interest ratio of -3.44, signalling that earnings before interest and taxes are insufficient to cover interest expenses. Additionally, the return on equity (ROE) stands at a modest 6.68%, reflecting low profitability relative to shareholders’ funds. These indicators highlight ongoing operational challenges and limited efficiency in generating shareholder value.
Valuation Considerations
The valuation grade for Bodhtree Consulting Ltd is currently deemed risky. The stock trades at valuations that are less favourable compared to its historical averages, raising concerns about potential overvaluation or market scepticism. Despite this, the latest data shows that profits have risen by 134.8% over the past year, although this has not translated into positive stock returns, which remain flat at 0.00% over the same period. This divergence suggests that the market may be cautious about the sustainability of profit growth or other underlying risks.
Financial Trend Analysis
The financial grade is flat, indicating a lack of significant improvement or deterioration in recent performance. The company’s net sales for the nine months ended September 2025 stood at ₹6.14 crores, representing a sharp decline of 54.62% compared to the previous period. Correspondingly, the profit after tax (PAT) for the same period was a loss of ₹0.10 crores, also down by 54.62%. These figures underscore the company’s struggle to generate revenue growth and profitability, which weighs heavily on its financial outlook.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Technical Outlook
The technical grade for Bodhtree Consulting Ltd is mildly bearish. Recent price movements show some short-term volatility, with the stock gaining 4.98% in the last trading day and 3.76% over the past week. However, the one-month and three-month returns are negative at -6.00% and -17.63% respectively, reflecting downward momentum. This technical profile suggests that while there may be occasional rallies, the overall trend remains weak, cautioning investors about potential further declines.
Stock Returns and Market Performance
As of 24 December 2025, the stock’s returns over various time frames present a mixed picture. The one-day gain of 4.98% and one-week increase of 3.76% contrast with the negative returns over one and three months. The absence of data for six months, year-to-date, and one-year returns limits a full assessment of longer-term performance. Nonetheless, the flat one-year return alongside significant profit growth indicates a disconnect between earnings and market valuation, which investors should carefully consider.
Implications for Investors
The Strong Sell rating signals that investors should exercise caution with Bodhtree Consulting Ltd at this juncture. The company’s below-average quality, risky valuation, flat financial trend, and mildly bearish technicals collectively point to elevated risks and uncertain prospects. Investors seeking stability and growth may find more attractive opportunities elsewhere, while those considering exposure to this stock should be prepared for volatility and potential further downside.
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Company Profile and Market Context
Bodhtree Consulting Ltd operates within the Computers - Software & Consulting sector and is classified as a microcap company. Its modest market capitalisation and sector positioning contribute to its risk profile, as smaller companies often face greater volatility and operational challenges. The company’s current financial and operational difficulties, as reflected in its recent results and ratings, highlight the need for investors to carefully evaluate its prospects in the context of sector dynamics and broader market conditions.
Summary
In summary, Bodhtree Consulting Ltd’s Strong Sell rating by MarketsMOJO, last updated on 01 Dec 2025, reflects a comprehensive assessment of its current challenges and risks. The company’s below-average quality, risky valuation, flat financial trend, and mildly bearish technical outlook combine to suggest a cautious approach for investors. The latest data as of 24 December 2025 confirms ongoing operational losses, declining sales, and volatile price performance, underscoring the need for careful consideration before investing in this stock.
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