Current Rating and Its Significance
MarketsMOJO’s 'Hold' rating for Creative Newtech Ltd indicates a balanced view of the stock’s prospects. It suggests that investors should maintain their existing positions rather than aggressively buying or selling at this stage. This rating reflects a moderate confidence in the company’s fundamentals, valuation, financial trends, and technical outlook, signalling neither strong bullishness nor bearishness.
Quality Assessment
As of 05 January 2026, Creative Newtech Ltd holds an average quality grade. The company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 37.10% and operating profit growing at 35.17%. These figures highlight a robust operational performance and an ability to expand its business steadily. The positive quarterly results reported in September 2025 further reinforce this quality assessment, with profit before tax (excluding other income) rising by 83.64% to ₹17.96 crores and net sales surging 59.39% to ₹655.75 crores. Operating profit before depreciation and interest (PBDIT) also reached a record ₹22.88 crores, underscoring operational efficiency improvements.
Valuation Perspective
The valuation grade for Creative Newtech Ltd is currently attractive. The company’s return on capital employed (ROCE) stands at a respectable 13.4%, which is a positive indicator of capital efficiency. Moreover, the stock trades at an enterprise value to capital employed ratio of 2.8, suggesting it is priced at a discount relative to its peers’ historical averages. This valuation appeal is tempered by a price-to-earnings-to-growth (PEG) ratio of 4.7, which indicates that while growth prospects are strong, the stock may not be undervalued on a growth-adjusted basis. Investors should consider this balance when evaluating the stock’s price relative to its earnings growth potential.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend and Profitability
Financially, Creative Newtech Ltd is showing positive trends. The company’s profits have increased by 10.5% over the past year, reflecting steady earnings growth. Despite the stock price remaining flat over the same period, this divergence suggests underlying business strength not yet fully reflected in the market valuation. The company’s microcap status means it may be less liquid and more volatile, but the consistent upward trajectory in sales and profits is a reassuring sign for investors seeking growth potential.
Technical Outlook
From a technical standpoint, the stock is mildly bullish. The recent price movements show stability, with a day change of 0.00% and a year-to-date gain of 1.01% as of 05 January 2026. While short-term price data such as one-month and three-month returns are not available, the mild bullishness suggests a cautious optimism among traders. This technical grade complements the fundamental and valuation assessments, supporting the 'Hold' rating as a prudent stance for investors.
Institutional Participation
One notable factor influencing the stock’s outlook is the declining participation of institutional investors. Over the previous quarter, institutional holdings decreased by 0.62%, with these investors now collectively holding only 1.35% of the company. Institutional investors typically have greater resources and expertise to analyse company fundamentals, so their reduced stake may signal caution or a shift in investment priorities. Retail investors should weigh this trend carefully, considering the potential implications for liquidity and market sentiment.
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Implications for Investors
For investors, the 'Hold' rating on Creative Newtech Ltd suggests maintaining current positions while monitoring the company’s progress closely. The attractive valuation and positive financial trends provide a foundation for potential future gains, but the average quality grade and mild technical signals counsel caution. The reduced institutional interest adds an additional layer of risk, emphasising the need for careful portfolio management and diversification.
Investors should also consider the company’s microcap status, which can lead to higher volatility and less market liquidity. Those with a higher risk tolerance and a long-term investment horizon may find the stock’s growth prospects appealing, while more conservative investors might prefer to wait for clearer signs of sustained momentum or improved institutional confidence.
Summary
In summary, Creative Newtech Ltd’s current 'Hold' rating by MarketsMOJO, updated on 11 December 2025, reflects a balanced view of the company’s prospects as of 05 January 2026. The stock exhibits solid growth fundamentals, an attractive valuation relative to peers, positive financial trends, and a mildly bullish technical outlook. However, average quality metrics and declining institutional participation suggest a cautious approach. Investors should weigh these factors carefully when considering their exposure to this microcap stock.
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