Crest Ventures Ltd is Rated Strong Sell

Understanding the Current Rating

The Strong Sell rating assigned to Crest Ventures Ltd indicates a cautious stance for investors, signalling significant concerns about the company’s near-term prospects. This recommendation 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 and helps investors understand the risks and challenges facing the stock.

Quality Assessment

As of 11 January 2026, Crest Ventures Ltd holds an average quality grade. This suggests that while the company maintains some operational stability, it is not demonstrating strong fundamentals that would inspire confidence. The recent financial results have been disappointing, with the company reporting a decline in net sales by 16.51% in the quarter ending September 2025. Additionally, the company has posted negative results for three consecutive quarters, highlighting ongoing operational challenges.

The quarterly profit after tax (PAT) has fallen sharply by 78.3%, standing at ₹3.72 crores, which is a significant contraction in profitability. Return on Capital Employed (ROCE) is notably low at 5.61%, indicating inefficient use of capital. Furthermore, the operating profit to interest coverage ratio is at a concerning low of 2.38 times, signalling potential difficulties in servicing debt obligations comfortably.

Valuation Perspective

Currently, Crest Ventures Ltd is considered very expensive relative to its earnings and growth prospects. Despite a Price to Book Value of 0.8, which suggests the stock trades at a discount compared to some peers, the valuation grade remains very expensive due to the company’s weak profitability and subdued returns. The Return on Equity (ROE) is only 4.1%, which is low for a financial services company, especially in the Non-Banking Financial Company (NBFC) sector.

The stock’s valuation does not appear justified given the deteriorating financial performance. Over the past year, the stock has generated a negative return of 10.72%, underperforming the broader market benchmark BSE500, which has delivered a positive 6.14% return over the same period. This divergence highlights investor concerns about the company’s growth and earnings sustainability.

Financial Trend Analysis

The financial trend for Crest Ventures Ltd is very negative as of 11 January 2026. The company’s earnings have contracted by 43.4% over the past year, reflecting operational headwinds and a challenging business environment. The persistent decline in net sales and profits over multiple quarters points to structural issues that have yet to be resolved.

Moreover, the company’s microcap status and limited institutional interest add to the cautionary outlook. Domestic mutual funds hold no stake in Crest Ventures Ltd, which may indicate a lack of confidence from professional investors who typically conduct thorough due diligence. This absence of institutional backing can affect liquidity and market perception negatively.

Technical Outlook

From a technical standpoint, the stock is mildly bearish. The recent price action shows a 3.11% decline on the day of 11 January 2026, with a one-week loss of 5.61%. Although the stock has posted some gains over the past month (+5.01%) and three months (+7.32%), these have not been sufficient to offset the six-month decline of 4.39% and the one-year negative return of 10.72%. This mixed technical picture suggests short-term volatility with a prevailing downward bias.

Investors should be cautious as the technical indicators do not currently support a strong recovery, and the stock’s momentum remains weak relative to the broader market and sector peers.

Sector and Market Context

Crest Ventures Ltd operates within the NBFC sector, which has faced heightened scrutiny and regulatory challenges in recent years. The company’s microcap status further exposes it to market volatility and liquidity constraints. Compared to the broader NBFC sector, which has seen pockets of recovery and growth, Crest Ventures Ltd’s performance has lagged significantly, underscoring the risks inherent in its current business model and financial health.

What This Rating Means for Investors

The Strong Sell rating on Crest Ventures Ltd serves as a clear warning to investors about the risks associated with holding or acquiring this stock at present. It reflects a combination of weak financial performance, expensive valuation relative to earnings quality, and a subdued technical outlook. Investors should carefully consider these factors before making investment decisions.

For those currently holding the stock, the rating suggests a need to reassess exposure and possibly reduce holdings to limit downside risk. Prospective investors are advised to exercise caution and seek alternative opportunities with stronger fundamentals and more favourable valuations.

It is important to note that while the rating was updated on 31 December 2025, all financial data and returns discussed here are current as of 11 January 2026, ensuring that the analysis reflects the latest available information.

Summary of Key Metrics as of 11 January 2026

• Mojo Score: 24.0 (Strong Sell)


• Market Capitalisation: Microcap segment


• Net Sales decline (latest quarter): -16.51%


• Quarterly PAT decline: -78.3%, at ₹3.72 crores


• ROCE (Half Year): 5.61%


• Operating Profit to Interest Coverage: 2.38 times


• ROE: 4.1%


• Price to Book Value: 0.8


• Stock Returns: 1D -3.11%, 1W -5.61%, 1M +5.01%, 3M +7.32%, 6M -4.39%, YTD -1.84%, 1Y -10.72%


• BSE500 1Y Return Benchmark: +6.14%

Given these metrics, the Strong Sell rating is a reflection of the company’s current challenges and the cautious outlook from MarketsMOJO’s analytical framework.

Investor Takeaway

Investors should prioritise companies with stronger financial trends, reasonable valuations, and positive technical momentum. Crest Ventures Ltd’s current profile does not meet these criteria, making it a less attractive option in the NBFC sector at this time. Monitoring future quarterly results and any strategic initiatives by the company will be essential to reassess its investment potential going forward.

Conclusion

Crest Ventures Ltd’s Strong Sell rating as of 31 December 2025, supported by current data as of 11 January 2026, highlights significant concerns across quality, valuation, financial trend, and technical parameters. Investors are advised to approach this stock with caution and consider the broader market context and sector dynamics before making investment decisions.

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