Creative Newtech Ltd is Rated Hold by MarketsMOJO

Current Rating Overview

On 01 February 2026, Creative Newtech Ltd’s rating was revised to 'Hold' from a previous 'Sell' status, reflecting an improvement in its overall assessment. The company’s Mojo Score increased by 6 points, moving from 48 to 54, signalling a moderate enhancement in its investment appeal. This 'Hold' rating suggests that investors should maintain their existing positions rather than aggressively buying or selling, as the stock currently presents a balanced risk-reward profile.

Understanding the 'Hold' Rating

The 'Hold' recommendation indicates that while the stock shows signs of stability and some positive momentum, it does not yet exhibit the strong fundamentals or valuation metrics that would justify a 'Buy' rating. Investors are advised to monitor the stock closely for further developments that could influence its trajectory. This rating is particularly relevant for those seeking to avoid excessive risk while maintaining exposure to potential growth opportunities.

Here’s How the Stock Looks TODAY

As of 08 February 2026, Creative Newtech Ltd displays a mixed but cautiously optimistic profile across four key parameters: Quality, Valuation, Financial Trend, and Technicals. These factors collectively underpin the current 'Hold' rating and provide insight into the company’s investment potential.

Quality Assessment

The company’s quality grade is assessed as average. This reflects steady operational performance without significant volatility or exceptional competitive advantages. Creative Newtech Ltd has demonstrated healthy long-term growth, with net sales expanding at an annual rate of 37.10% and operating profit growing at 35.17%. These figures indicate a solid business model capable of generating consistent revenue and earnings growth, albeit without standout industry leadership.

Valuation Metrics

Valuation is one of the more attractive aspects of Creative Newtech Ltd’s current profile. The stock trades at a discount relative to its peers’ historical valuations, supported by an enterprise value to capital employed ratio of 2.7. Additionally, the company’s return on capital employed (ROCE) stands at a respectable 13.4%, signalling efficient use of capital to generate profits. Despite these positives, the price-to-earnings-to-growth (PEG) ratio of 3.8 suggests that the stock is somewhat expensive relative to its earnings growth, tempering enthusiasm for a more bullish rating.

Financial Trend

The financial trend for Creative Newtech Ltd is positive. The latest quarterly results for December 2025 highlight record-breaking figures, with net sales reaching ₹914 crore, PBDIT at ₹26.50 crore, and profit before tax less other income at ₹20.16 crore. Over the past year, profits have increased by 10.9%, while the stock itself has delivered a flat return of 0.00%. This divergence suggests that while the company is improving its profitability, the market has yet to fully price in this progress.

Technical Analysis

From a technical perspective, the stock is currently exhibiting sideways movement. The recent one-day price change was a decline of 4.46%, while the one-week return was a modest gain of 3.02%. The one-month performance shows a slight dip of 4.30%, and the year-to-date return stands at -3.51%. This pattern indicates a lack of strong directional momentum, reinforcing the 'Hold' stance as investors await clearer signals of upward or downward trends.

Additional Market Insights

Despite its microcap status and positive financial indicators, Creative Newtech Ltd has negligible domestic mutual fund ownership, with funds holding 0% of the company. This absence of institutional backing may reflect cautious sentiment or limited research coverage, which could impact liquidity and investor confidence. For investors, this highlights the importance of conducting thorough due diligence before increasing exposure.

Implications for Investors

For investors, the 'Hold' rating on Creative Newtech Ltd suggests a cautious approach. The company’s solid growth in sales and profits, combined with an attractive valuation relative to peers, provides a foundation for potential future gains. However, the sideways technical trend and limited institutional interest imply that the stock may not yet be poised for significant upward momentum.

Investors should consider maintaining existing positions while monitoring upcoming quarterly results and market developments. The current financial strength and valuation metrics offer a degree of safety, but the absence of strong technical signals and institutional support warrants prudence.

Summary

In summary, Creative Newtech Ltd’s 'Hold' rating reflects a balanced view of its current investment profile. The company exhibits healthy growth and attractive valuation, yet the technical outlook and market participation suggest a wait-and-watch stance. As of 08 February 2026, investors are advised to keep a close eye on the stock’s evolving fundamentals and price action before making significant portfolio adjustments.

Company Profile and Market Capitalisation

Creative Newtech Ltd operates within the miscellaneous sector and is classified as a microcap company. Its market capitalisation remains modest, which can contribute to higher volatility and lower liquidity compared to larger peers. This factor should be considered by investors when assessing risk tolerance and portfolio diversification.

Stock Performance Overview

The stock’s recent performance has been mixed. While the one-week return of +3.02% indicates some short-term buying interest, the one-day decline of -4.46% and one-month drop of -4.30% highlight ongoing volatility. The year-to-date return of -3.51% further emphasises the lack of clear upward momentum. These fluctuations underscore the importance of a measured investment approach aligned with the 'Hold' rating.

Conclusion

Creative Newtech Ltd’s current 'Hold' rating by MarketsMOJO, updated on 01 February 2026, is supported by a combination of average quality, attractive valuation, positive financial trends, and sideways technical movement as of 08 February 2026. This balanced assessment encourages investors to maintain their positions while remaining vigilant for future developments that could alter the stock’s outlook.

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