Current Rating Overview
MarketsMOJO currently assigns Electronics Mart India Ltd a 'Sell' rating, reflecting a cautious stance on the stock. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The company’s Mojo Score stands at 31.0, an improvement from the previous 23.0 score when it was rated 'Strong Sell' earlier, but still firmly within the sell territory. This score indicates that while some aspects have marginally improved, significant concerns remain that warrant a conservative investment approach.
Quality Assessment
As of 28 December 2025, Electronics Mart India Ltd’s quality grade is assessed as average. This suggests that the company maintains a moderate level of operational efficiency and business stability, but lacks the robustness seen in higher-quality peers. The company’s ability to generate consistent profits and maintain operational discipline is under pressure, as evidenced by its recent financial results. Investors should note that average quality does not imply strong growth potential, but rather a middling position that requires careful monitoring.
Valuation Perspective
The valuation grade for Electronics Mart India Ltd is currently attractive. This indicates that the stock is trading at a price level that may offer value relative to its earnings and asset base. Despite the negative performance trends, the market price has adjusted downward, potentially presenting an entry point for value-oriented investors. However, attractive valuation alone does not guarantee positive returns, especially when other fundamental and technical factors are weak.
Financial Trend Analysis
The financial trend for Electronics Mart India Ltd is very negative as of today. The company has reported a decline in net sales by 8.53% in the latest quarter, continuing a streak of five consecutive quarters with negative results. Operating profit has contracted at an annual rate of -0.35% over the past five years, signalling long-term stagnation or decline. Additionally, the company’s ability to service its debt is low, with a high Debt to EBITDA ratio of 3.55 times, and interest expenses rising by 38.76% over the past nine months. The quarterly profit after tax (PAT) has fallen sharply by 82.4% compared to the previous four-quarter average, underscoring the financial strain. These factors collectively weigh heavily on the stock’s outlook.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Technical Outlook
The technical grade for Electronics Mart India Ltd is bearish, reflecting negative momentum in the stock price and weak market sentiment. The stock has underperformed key benchmarks such as the BSE500 index over the past three years, one year, and three months. Specifically, the stock has delivered a 39.61% loss over the last year and a 37.08% decline year-to-date as of 28 December 2025. Short-term technical indicators also show downward pressure, with the stock falling 15.10% in the past month and 1.01% on the last trading day. This bearish technical profile suggests limited near-term upside and heightened risk for investors.
Stock Returns and Market Performance
Currently, Electronics Mart India Ltd’s stock returns paint a challenging picture. The one-day change is -1.01%, and the one-week return is -1.15%. Over longer periods, the stock has experienced significant declines: -15.10% in one month, -29.57% in three months, and -30.49% over six months. The year-to-date return stands at -37.08%, while the one-year return is -39.61%. These figures highlight sustained underperformance relative to the broader market and sector peers, reinforcing the cautious stance reflected in the 'Sell' rating.
Implications for Investors
For investors, the 'Sell' rating on Electronics Mart India Ltd signals a recommendation to reduce or avoid exposure to this stock at present. The combination of average quality, attractive valuation, very negative financial trends, and bearish technicals suggests that the company faces significant headwinds. While the valuation may appear tempting, the ongoing deterioration in profitability, rising debt servicing costs, and weak price momentum imply elevated risk. Investors should carefully weigh these factors against their risk tolerance and portfolio objectives before considering any position in this stock.
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Summary
In summary, Electronics Mart India Ltd’s current 'Sell' rating by MarketsMOJO, updated on 22 December 2025, reflects a comprehensive assessment of the company’s present-day fundamentals and market conditions as of 28 December 2025. The stock’s average quality and attractive valuation are overshadowed by very negative financial trends and bearish technical signals. The company’s ongoing challenges in profitability, debt servicing, and market performance suggest that investors should exercise caution. This rating serves as a guide for investors to consider reducing exposure or avoiding new investments in the stock until there is a clear improvement in its financial health and market outlook.
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