Understanding the Current Rating
The Strong Sell rating assigned to Crest Ventures Ltd indicates a cautious stance for investors, signalling significant concerns across multiple dimensions of the company’s profile. 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 and helps investors understand the risks and challenges the stock currently faces.
Quality Assessment
As of 22 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 negative outcomes for three consecutive quarters. Notably, the net sales for the quarter ending September 2025 fell by 16.51% to ₹29.54 crores, and the profit after tax (PAT) dropped sharply by 78.3% to ₹3.72 crores. Such declines highlight operational challenges and pressure on earnings quality.
Valuation Perspective
The valuation grade for Crest Ventures Ltd is classified as very expensive. Despite the company’s microcap status, the stock trades at a price-to-book value of 0.8, which is a discount relative to its peers’ historical valuations. However, this discount does not fully compensate for the underlying financial weaknesses. The return on equity (ROE) stands at a modest 4.1%, which is low for a financial services company, and the return on capital employed (ROCE) for the half-year period is at a concerning 5.61%. These metrics suggest that the company is not generating sufficient returns to justify its current market price, reinforcing the valuation concerns.
Financial Trend Analysis
The financial trend for Crest Ventures Ltd is very negative as of today. The company’s profitability has deteriorated significantly over the past year, with profits falling by 43.4%. The stock’s returns over various time frames also reflect this downtrend: a 12-month return of -12.93%, a 6-month return of -3.97%, and a 1-month decline of 6.54%. The year-to-date return is negative at -2.94%. These figures underscore the ongoing financial stress and lack of positive momentum in earnings or stock price performance.
Technical Outlook
From a technical standpoint, Crest Ventures Ltd is mildly bearish. The stock’s short-term price movements show weakness, with a 1-week decline of 1.65% and only a slight positive movement over three months (+1.34%). The day change as of 22 January 2026 is a marginal gain of 0.12%, indicating limited buying interest. This technical profile aligns with the broader negative sentiment reflected in the fundamental and valuation assessments.
Additional Market Insights
Another noteworthy aspect is the absence of domestic mutual fund holdings in Crest Ventures Ltd. As of today, mutual funds hold 0% of the company’s shares. Given that domestic mutual funds typically conduct thorough research and invest in companies with strong prospects, their lack of participation may signal concerns about the company’s business model, valuation, or growth potential at current prices.
Implications for Investors
The Strong Sell rating from MarketsMOJO serves as a cautionary signal for investors considering Crest Ventures Ltd. It reflects a combination of average operational quality, expensive valuation relative to returns, deteriorating financial trends, and a weak technical outlook. Investors should carefully weigh these factors against their risk tolerance and investment horizon. The current data as of 22 January 2026 suggests that the stock faces significant headwinds, and potential buyers may want to exercise prudence or seek alternative opportunities with stronger fundamentals and growth prospects.
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Summary of Key Metrics as of 22 January 2026
The latest data shows Crest Ventures Ltd’s stock has delivered a 12-month return of -12.93%, reflecting the challenging market environment and company-specific issues. The company’s net sales have declined by 16.51% in the most recent quarter, while profitability has contracted sharply with PAT down 78.3%. The ROCE and ROE metrics remain subdued at 5.61% and 4.1% respectively, indicating limited efficiency in capital utilisation. The valuation remains stretched despite a slight discount in price-to-book value compared to peers, and technical indicators suggest a mildly bearish trend.
Sector and Market Context
Crest Ventures Ltd operates within the Non Banking Financial Company (NBFC) sector, which has faced heightened scrutiny and volatility in recent years. The company’s microcap status adds an additional layer of risk due to lower liquidity and potentially higher price volatility. Investors should consider these sector-specific challenges alongside the company’s individual performance metrics when making investment decisions.
Conclusion
In conclusion, the Strong Sell rating assigned to Crest Ventures Ltd by MarketsMOJO reflects a comprehensive evaluation of the company’s current financial health, valuation, and market sentiment as of 22 January 2026. The combination of average quality, very expensive valuation, very negative financial trends, and mildly bearish technicals suggests that the stock is facing considerable headwinds. Investors are advised to approach this stock with caution and consider the broader market and sector dynamics before committing capital.
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