Understanding the Current Rating
The 'Hold' rating assigned to Handson Global Management (HGM) Ltd indicates a neutral stance for investors. It suggests that while the stock may not be an immediate buy, it is not a sell either, reflecting a balanced view of the company's prospects. This rating is derived from a comprehensive analysis of four key parameters: Quality, Valuation, Financial Trend, and Technicals.
Quality Assessment
As of 25 December 2025, the company’s quality grade is below average. This reflects certain operational or structural challenges that may affect long-term stability or growth potential. Despite this, the company maintains a low debt-to-equity ratio of 0.07 times, indicating a conservative capital structure and limited financial risk from leverage. The consistent declaration of positive results over the last seven consecutive quarters further supports the company’s operational resilience.
Valuation Perspective
Valuation remains one of the more attractive aspects of Handson Global Management (HGM) Ltd. The stock trades at a fair value relative to its peers, with an enterprise value to capital employed ratio of 2.9 and a return on capital employed (ROCE) of 11.7%. These metrics suggest that the company is efficiently utilising its capital base. Additionally, the PEG ratio stands at a low 0.3, signalling that the stock’s price is reasonable compared to its earnings growth potential. This valuation attractiveness is a key factor supporting the 'Hold' rating.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend and Performance
The financial trend for Handson Global Management (HGM) Ltd is positive, reflecting healthy growth in key metrics. As of 25 December 2025, net sales have grown at an annual rate of 33.39%, demonstrating robust top-line expansion. Profit after tax (PAT) for the nine months stands at ₹3.55 crores, growing at an impressive 48.54%. Cash and cash equivalents have reached a high of ₹15.02 crores in the half-year period, indicating strong liquidity. Quarterly net sales have also peaked at ₹18.95 crores, underscoring operational momentum.
However, despite these encouraging fundamentals, the stock’s price performance has been mixed. Over the past year, the stock has delivered a return of -5.06%, underperforming the broader BSE500 index over one year, three years, and three months. This divergence between rising profits and subdued share price performance may reflect market concerns about the company’s below-average quality grade or sector-specific headwinds.
Technical Analysis
Technically, the stock is mildly bullish. This suggests that while there is some positive momentum in price action, it is not strong enough to warrant a more aggressive rating. The recent day change of -6.25% and one-month decline of -5.40% indicate short-term volatility, but the six-month gain of 24.40% shows that the stock has experienced periods of strength. Investors should consider this technical context alongside fundamental factors when making decisions.
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What This Means for Investors
For investors, the 'Hold' rating on Handson Global Management (HGM) Ltd suggests a cautious approach. The company’s attractive valuation and positive financial trends provide a foundation for potential future gains. However, the below-average quality grade and recent underperformance relative to broader indices indicate risks that should not be overlooked.
Investors may consider maintaining existing positions while monitoring developments in the company’s operational quality and market conditions. Those seeking higher conviction may wait for clearer signs of improvement in quality metrics or stronger technical momentum before increasing exposure.
Company Profile and Market Context
Handson Global Management (HGM) Ltd operates within the Computers - Software & Consulting sector and is classified as a microcap company. The majority shareholding is held by promoters, which often implies stable management control. The company’s recent financial results and growth trajectory highlight its potential within a competitive sector, but the microcap status also suggests higher volatility and risk compared to larger peers.
Overall, the current 'Hold' rating reflects a balanced view that recognises both the strengths and challenges facing Handson Global Management (HGM) Ltd as of 25 December 2025.
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