Current Rating and Its Significance
MarketsMOJO’s 'Buy' rating for Carysil Ltd indicates a positive outlook on the stock, suggesting that investors may consider adding it to their portfolios based on its present strengths. 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 potential.
Quality Assessment
As of 31 December 2025, Carysil Ltd demonstrates a strong quality profile. The company holds a 'good' quality grade, reflecting robust management efficiency and operational effectiveness. Notably, the return on capital employed (ROCE) stands at an impressive 17.99%, signalling efficient use of capital to generate profits. This high ROCE is a critical indicator of the company’s ability to deliver sustainable returns to shareholders.
Additionally, Carysil’s ability to service its debt is commendable, with a low Debt to EBITDA ratio of 1.36 times. This suggests a manageable debt burden relative to earnings, reducing financial risk and enhancing stability. The company’s consistent positive results over the last two quarters further reinforce its operational strength and management’s capability to navigate market challenges effectively.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Valuation Perspective
Currently, Carysil Ltd’s valuation is graded as 'fair'. The company’s ROCE of 15.5% combined with an enterprise value to capital employed ratio of 3.6 indicates that the stock is reasonably priced relative to its capital base. Importantly, the stock trades at a discount compared to its peers’ average historical valuations, offering potential value to investors seeking exposure in the Electronics & Appliances sector.
The price-to-earnings-to-growth (PEG) ratio of 1.1 further supports this view, suggesting that the stock’s price is aligned with its earnings growth prospects. Over the past year, Carysil has delivered a return of 17.69%, while profits have increased by 27.6%, highlighting a favourable growth-to-price relationship that investors often seek.
Financial Trend and Performance
The financial trend for Carysil Ltd is rated as 'very positive'. The company reported a net profit growth of 19.69% in the most recent quarter ending September 2025, underscoring strong earnings momentum. Operating profit to interest coverage ratio reached a high of 9.49 times, reflecting robust earnings relative to interest expenses and signalling financial resilience.
Profit before tax (PBT) excluding other income stood at ₹31.71 crores, growing by 47.6% compared to the previous four-quarter average. This surge in profitability is a key driver behind the positive financial grade and supports the stock’s current 'Buy' rating. The company’s consistent positive quarterly results demonstrate its ability to sustain growth and generate shareholder value.
Technical Analysis
From a technical standpoint, Carysil Ltd is rated as 'mildly bullish'. The stock’s price movement over recent months shows a mixed but generally positive trend. While the stock experienced a decline of 13.51% over the past month, it has gained 3.09% over three months and 1.19% over six months. The year-to-date return stands at a healthy 17.69%, indicating resilience and potential for further upside.
Despite a slight dip of 0.75% on the latest trading day, the overall technical signals suggest cautious optimism. Investors should consider this alongside fundamental strengths when evaluating the stock’s near-term prospects.
Shareholding and Market Capitalisation
Carysil Ltd is classified as a small-cap company within the Electronics & Appliances sector. The majority shareholders are non-institutional, which may imply a concentrated ownership structure. This factor can influence stock liquidity and volatility, aspects that investors should monitor closely.
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What This Rating Means for Investors
The 'Buy' rating assigned to Carysil Ltd by MarketsMOJO reflects a balanced and data-driven endorsement based on current company fundamentals and market conditions. For investors, this rating suggests that Carysil is positioned to deliver favourable returns relative to its risk profile, supported by strong management efficiency, sound financial health, reasonable valuation, and positive technical indicators.
Investors should note that while the rating was last updated on 03 Nov 2025, the financial metrics and returns discussed are current as of 31 December 2025, ensuring that the recommendation is grounded in the latest available data. This approach helps investors make informed decisions based on the company’s present-day performance rather than historical snapshots.
Given the company’s consistent profit growth, manageable debt levels, and attractive valuation compared to peers, Carysil Ltd presents a compelling opportunity for those seeking exposure in the Electronics & Appliances sector. However, as with all investments, potential investors should consider their individual risk tolerance and investment horizon before committing capital.
Summary
In summary, Carysil Ltd’s current 'Buy' rating by MarketsMOJO is supported by a combination of good quality metrics, fair valuation, very positive financial trends, and mildly bullish technical signals. The company’s strong ROCE, low leverage, and recent profit growth underpin this positive outlook. While the stock has experienced some short-term volatility, its year-to-date performance and fundamentals suggest it remains an attractive proposition for investors seeking growth in the small-cap segment of the Electronics & Appliances sector.
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