Current Rating and Its Significance
MarketsMOJO’s 'Sell' rating for Future Supply indicates a cautious stance towards the stock, suggesting that investors should consider reducing exposure or avoiding new purchases at this time. This rating is based on a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical indicators. While the rating was revised on 15 October 2025, the following discussion focuses on the stock’s present fundamentals and market behaviour as of 29 December 2025.
Quality Assessment
As of 29 December 2025, Future Supply’s quality grade remains below average. This reflects ongoing challenges in operational efficiency and profitability. The company reported a net profit of INR -4,171.36 million in the half-year ending June 2022, marking a significant decline of 577.98% year-on-year. Such losses highlight structural issues that have yet to be fully addressed. Additionally, raw material costs have increased by 16.1% year-on-year, exerting further pressure on margins. These factors contribute to the cautious quality assessment and weigh heavily on the overall rating.
Valuation Considerations
Future Supply’s valuation is currently classified as risky. The stock trades at levels that are elevated relative to its historical averages, raising concerns about potential overvaluation. Despite this, the stock has delivered strong returns recently, with a 69.94% gain year-to-date and a 62.43% increase over the past year as of 29 December 2025. This divergence between price performance and fundamental risk suggests that the market may be pricing in expectations of future improvement, but investors should remain wary given the underlying financial challenges.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial trend for Future Supply is currently flat, indicating limited improvement in key financial metrics over recent periods. The company has not released results in the last six months, which adds an element of uncertainty for investors. Despite this, profits have reportedly risen by 92.3% over the past year, suggesting some recovery from previous lows. However, the flat financial grade reflects that this improvement has not yet translated into consistent, sustainable growth or profitability.
Technical Indicators
Technically, the stock’s grade is neutral, with no strong signals either for buying or selling. The stock price has remained stable in the short term, showing no change over the past day, week, or month as of 29 December 2025. However, it has recorded notable gains over the medium term, with a 20.49% increase over three months and a 31.84% rise over six months. These trends indicate some positive momentum but are tempered by the underlying fundamental risks.
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Investor Implications
For investors, the 'Sell' rating on Future Supply suggests prudence. While the stock has shown impressive price appreciation recently, the underlying financial and operational challenges present significant risks. The below-average quality grade and risky valuation imply that the company’s current market price may not fully reflect its fundamental weaknesses. The flat financial trend and neutral technical signals further reinforce the need for caution.
Investors should carefully weigh these factors against their risk tolerance and investment horizon. Those seeking exposure to the transport services sector might consider alternative stocks with stronger fundamentals and more favourable valuations. Meanwhile, existing shareholders may want to monitor upcoming financial disclosures closely to assess whether the company can sustain its recent momentum and improve profitability.
Summary
In summary, Future Supply’s 'Sell' rating by MarketsMOJO, last updated on 15 October 2025, reflects a balanced view of the company’s current challenges and market performance. As of 29 December 2025, the stock exhibits strong recent returns but remains burdened by below-average quality, risky valuation, flat financial trends, and neutral technical indicators. This comprehensive assessment provides investors with a clear understanding of the stock’s present standing and the rationale behind the recommendation.
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