Creative Eye Ltd is Rated Strong Sell

Current Rating and Its Implications

MarketsMOJO’s Strong Sell rating on Creative Eye Ltd indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market and its peers. 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 and risk profile.

Quality Assessment

As of 03 January 2026, Creative Eye Ltd’s quality grade remains below average. The company has not declared financial results in the last six months, which raises concerns about transparency and operational momentum. Over the past five years, net sales have declined at an annualised rate of -32.41%, indicating persistent challenges in revenue growth. Additionally, the company’s ability to service its debt is weak, with an average EBIT to interest ratio of -2.10, suggesting that earnings before interest and tax are insufficient to cover interest expenses. This weak fundamental strength undermines investor confidence in the company’s long-term viability.

Valuation Considerations

Creative Eye Ltd is currently classified as risky from a valuation standpoint. The stock’s negative EBITDA highlights operational difficulties, and its trading multiples are unfavourable compared to historical averages. Despite a 67.1% increase in profits over the past year, the stock has delivered a negative return of -9.74% during the same period, reflecting market scepticism about the sustainability of earnings growth. This disparity between profit improvement and share price performance suggests that investors remain cautious about the company’s valuation and future prospects.

Financial Trend Analysis

The financial trend for Creative Eye Ltd is currently flat, indicating stagnation in key financial metrics. The company’s recent results, including those reported in June 2025, showed no significant negative triggers but also lacked positive momentum. This flat trend, combined with weak long-term fundamentals, suggests limited growth prospects in the near term. Investors should note that the company’s underperformance relative to the BSE500 index over the last three years, one year, and three months further emphasises the subdued financial trajectory.

Technical Outlook

From a technical perspective, Creative Eye Ltd is rated bearish. The stock has experienced consistent declines across multiple time frames: a 4.66% drop in the last day, 2.93% over the past week, 5.18% in the last month, and a steep 28.57% fall over six months. This downward momentum reflects negative market sentiment and weak price support levels. The bearish technical grade reinforces the Strong Sell rating, signalling that the stock may continue to face selling pressure in the short to medium term.

Stock Returns and Market Performance

As of 03 January 2026, Creative Eye Ltd has delivered negative returns across all key periods. The stock’s one-year return stands at -9.74%, underperforming the broader market benchmarks. Year-to-date, the stock has declined by 4.79%, and the six-month return is a significant -28.57%. These figures highlight the challenges faced by the company in regaining investor confidence and market share. The consistent underperformance relative to the BSE500 index underscores the stock’s current risk profile.

What This Rating Means for Investors

Investors should interpret the Strong Sell rating on Creative Eye Ltd as a clear indication to exercise caution. The combination of weak quality metrics, risky valuation, flat financial trends, and bearish technical signals suggests that the stock carries elevated risk and limited upside potential at present. For those holding the stock, it may be prudent to reassess their exposure and consider risk mitigation strategies. Prospective investors should carefully evaluate whether the current market price adequately compensates for the risks involved.

Sector and Market Context

Operating within the Media & Entertainment sector, Creative Eye Ltd’s microcap status adds an additional layer of volatility and liquidity risk. The sector itself has seen mixed performance recently, with some companies benefiting from digital transformation trends while others struggle with legacy business models. Creative Eye Ltd’s ongoing challenges and lack of recent financial disclosures place it at a disadvantage compared to more stable peers. This context further supports the cautious stance reflected in the Strong Sell rating.

Summary

In summary, Creative Eye Ltd’s current Strong Sell rating by MarketsMOJO, updated on 22 December 2025, is grounded in a thorough analysis of the company’s present-day fundamentals as of 03 January 2026. The below-average quality, risky valuation, flat financial trend, and bearish technical outlook collectively justify this recommendation. Investors should remain vigilant and consider these factors carefully when making portfolio decisions involving this stock.

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