Current Rating and Its Significance
The Strong Sell rating assigned to Caprihans India Ltd indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market. This rating is based on 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 potential and risk profile.
Quality Assessment
As of 06 January 2026, Caprihans India Ltd’s quality grade remains below average. The company has struggled with profitability and operational efficiency over recent years. Its average Return on Equity (ROE) stands at a modest 2.51%, reflecting limited returns generated on shareholders’ funds. Furthermore, the company’s operating profit growth has been deeply negative, with a compound annual growth rate (CAGR) of -215.74% over the last five years. This weak fundamental strength highlights challenges in sustaining profitable operations and generating shareholder value.
Valuation Perspective
The valuation grade for Caprihans India Ltd is currently classified as risky. Despite the stock’s depressed price levels, the company’s negative operating profits and high leverage raise concerns about its financial stability. The Debt to EBITDA ratio is alarmingly high at 17.42 times, indicating significant debt servicing challenges. Investors should be wary of the risk embedded in the stock’s valuation, as the market appears to price in considerable uncertainty regarding future earnings and cash flows.
Financial Trend and Recent Performance
The financial trend for Caprihans India Ltd is negative, with recent quarterly results underscoring ongoing difficulties. The latest quarterly Profit Before Tax (PBT) excluding other income was a loss of ₹29.63 crores, down 27.4% compared to the previous four-quarter average. Similarly, the Profit After Tax (PAT) for the quarter was a loss of ₹24.89 crores, a steep decline of 91.2%. Net sales for the quarter were the lowest in recent periods at ₹174.77 crores. These figures illustrate the company’s deteriorating earnings quality and operational challenges.
Technical Analysis
From a technical standpoint, Caprihans India Ltd is rated bearish. The stock has underperformed significantly over multiple time frames. As of 06 January 2026, the stock has delivered a negative return of 44.29% over the past year and has declined by 30.84% over the last three months. This downtrend is further confirmed by the stock’s underperformance relative to the BSE500 index over the last three years, one year, and three months. The bearish technical grade suggests limited near-term upside potential and heightened downside risk.
Register here to know the latest call on Caprihans India Ltd
- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Stock Returns and Market Performance
Examining the stock’s recent price movements, Caprihans India Ltd has experienced significant volatility and negative returns. As of 06 January 2026, the stock’s one-day gain was 1.32%, but this short-term uptick contrasts with longer-term declines. Over the past week, the stock fell by 2.15%, and over one month, it declined by 0.86%. More notably, the three-month and six-month returns stand at -30.84% and -31.78%, respectively. Year-to-date, the stock is down 2.65%, while the one-year return is a substantial negative 44.29%. This performance reflects persistent investor concerns and weak market sentiment.
Debt and Profitability Challenges
Caprihans India Ltd’s financial health is further strained by its high leverage and poor profitability metrics. The company’s Debt to EBITDA ratio of 17.42 times signals a heavy debt burden relative to earnings, raising questions about its ability to meet interest and principal repayments comfortably. Despite some profit growth of 13.9% over the past year, the overall operating profits remain negative, contributing to the risky valuation grade. Investors should consider these factors carefully when evaluating the stock’s risk-reward profile.
Long-Term Outlook and Investor Considerations
The long-term outlook for Caprihans India Ltd remains challenging. The company’s weak fundamentals, negative financial trends, and bearish technical indicators suggest that investors should approach the stock with caution. The Strong Sell rating reflects these concerns and advises that the stock may continue to underperform unless there is a significant turnaround in operational performance and financial health. For investors, this rating serves as a warning to reassess exposure and consider alternative opportunities with stronger fundamentals and growth prospects.
Perfect timing to enter! This Small Cap from IT - Software just turned profitable with growth momentum clearly building up. Get in before the broader market notices!
- - New profitability achieved
- - Growth momentum building
- - Under-the-radar entry
Summary for Investors
In summary, Caprihans India Ltd’s Strong Sell rating by MarketsMOJO, last updated on 12 February 2025, is supported by the company’s current financial and market realities as of 06 January 2026. The below-average quality, risky valuation, negative financial trends, and bearish technical outlook collectively justify this cautious stance. Investors should weigh these factors carefully and consider the stock’s elevated risk profile before making investment decisions.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →
