Understanding the Current Rating
The Strong Sell rating assigned to Caprihans India Ltd indicates a cautious stance for investors, suggesting that the stock is expected to underperform relative to the broader market and its peers. 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 appeal and risk profile.
Quality Assessment
As of 09 February 2026, Caprihans India Ltd’s quality grade remains below average. The company has struggled with long-term fundamental strength, reflected in a deeply negative compound annual growth rate (CAGR) of -215.74% in operating profits over the past five years. This steep decline signals persistent operational challenges and an inability to generate sustainable earnings growth. Additionally, the company’s average return on equity (ROE) stands at a modest 2.51%, indicating low profitability relative to shareholders’ funds. Such weak profitability metrics undermine investor confidence in the company’s core business operations.
Valuation Considerations
The valuation grade for Caprihans India Ltd is classified as risky. Despite the stock’s significant price depreciation, with a one-year return of -44.07% as of today, the company’s profits have shown a modest increase of 13.9% over the same period. This divergence suggests that the market is pricing in considerable risk, possibly due to the company’s negative operating profits and high leverage. The debt to EBITDA ratio is alarmingly high at 17.42 times, indicating a strained ability to service debt obligations. Such financial risk factors contribute to the stock’s unattractive valuation from an investment standpoint.
Financial Trend Analysis
The financial trend for Caprihans India Ltd is negative, with recent quarterly results underscoring ongoing difficulties. The latest quarterly profit before tax excluding other income (PBT LESS OI) was a loss of ₹29.63 crores, representing a 27.4% decline compared to the previous four-quarter average. Similarly, the quarterly profit after tax (PAT) plunged by 91.2% to a loss of ₹24.89 crores. Net sales for the quarter were also at a low ₹174.77 crores, reflecting subdued demand or operational inefficiencies. These figures highlight the company’s deteriorating financial health and reinforce the rationale behind the cautious rating.
Technical Outlook
From a technical perspective, Caprihans India Ltd is rated bearish. The stock’s price performance over various time frames reveals a downward trajectory. While the stock gained 2.15% on the most recent trading day and 5.18% over the past week, it has declined sharply over longer periods: -24.72% in three months, -33.16% in six months, and -44.07% over the past year. Year-to-date, the stock is down 2.65%. This persistent negative momentum suggests weak investor sentiment and limited near-term upside potential.
Comparative Performance
Caprihans India Ltd’s underperformance is further emphasised when compared to broader market indices. The stock has lagged the BSE500 index over the last three years, one year, and three months, indicating that it has not kept pace with the general market recovery or sectoral trends. This relative weakness adds to the concerns for investors seeking stable or growth-oriented investments within the industrial plastic products sector.
Implications for Investors
For investors, the Strong Sell rating serves as a clear signal to exercise caution. The combination of weak fundamentals, risky valuation, negative financial trends, and bearish technical indicators suggests that Caprihans India Ltd currently faces significant headwinds. Investors should carefully consider these factors before initiating or maintaining positions in the stock, as the outlook points to continued challenges and potential downside risk.
Here’s how the stock looks TODAY
As of 09 February 2026, the stock’s microcap status and sector classification within Plastic Products - Industrial provide context for its market positioning. The Mojo Score of 3.0 and the Strong Sell grade reflect a comprehensive assessment by MarketsMOJO’s proprietary scoring system, which integrates quantitative and qualitative data. Despite some short-term price gains, the overall trend remains negative, underscoring the importance of a cautious investment approach.
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Summary of Key Metrics
To summarise, Caprihans India Ltd’s key financial and market metrics as of 09 February 2026 are as follows:
- Operating profit CAGR (5 years): -215.74%
- Debt to EBITDA ratio: 17.42 times
- Average Return on Equity: 2.51%
- Latest quarterly PBT less other income: -₹29.63 crores (down 27.4%)
- Latest quarterly PAT: -₹24.89 crores (down 91.2%)
- Net sales (latest quarter): ₹174.77 crores
- Stock returns: 1D +2.15%, 1W +5.18%, 1M +2.52%, 3M -24.72%, 6M -33.16%, YTD -2.65%, 1Y -44.07%
Sector and Market Context
Operating within the Plastic Products - Industrial sector, Caprihans India Ltd faces sector-specific challenges including raw material price volatility and competitive pressures. The company’s microcap status further implies limited liquidity and higher volatility, which can amplify investment risks. Investors should weigh these sectoral and market factors alongside the company’s individual performance when making portfolio decisions.
Conclusion
In conclusion, the Strong Sell rating for Caprihans India Ltd reflects a comprehensive evaluation of its current financial health, valuation risks, operational challenges, and technical outlook. While the stock has shown some short-term price resilience, the broader picture remains unfavourable. Investors are advised to approach this stock with caution, considering the significant risks highlighted by the latest data as of 09 February 2026.
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