Hazoor Multi Projects Ltd Downgraded to Strong Sell Amid Deteriorating Fundamentals and Bearish Technicals

Quality Assessment: Financial Performance Deteriorates Sharply

Hazoor Multi Projects Ltd’s financial quality has markedly declined, with the company reporting very negative results in Q2 FY25-26. Net sales fell by 15.22% year-on-year, continuing a troubling trend of eight consecutive quarters of negative earnings. The quarterly profit after tax (PAT) plunged to a loss of ₹9.93 crores, representing a staggering 189.6% decline compared to the previous four-quarter average. Operating cash flow for the year has also hit a low of ₹-49.46 crores, underscoring liquidity pressures.

Operating profit growth has contracted at an annualised rate of -22.46% over the past five years, signalling poor long-term growth prospects. The operating profit to interest coverage ratio has deteriorated to -0.67 times, indicating the company’s earnings are insufficient to cover interest expenses, a red flag for creditworthiness. Despite these challenges, the company maintains a relatively low Debt to EBITDA ratio of 0.63 times, suggesting manageable leverage but limited earnings cushion.

Valuation: Attractive on Paper but Reflective of Underperformance

From a valuation standpoint, Hazoor Multi Projects Ltd appears attractively priced with a Return on Capital Employed (ROCE) of 7.7% and an Enterprise Value to Capital Employed ratio of 1.4. These metrics suggest the stock trades at a discount relative to its peers’ historical valuations. However, this valuation discount is largely a reflection of the company’s sustained underperformance and deteriorating fundamentals.

Over the past year, the stock has generated a negative return of -32.46%, significantly underperforming the BSE500 index, which posted a positive 6.41% return over the same period. Profitability has also declined sharply, with profits falling by 37% year-on-year. This disconnect between valuation and performance highlights the risks investors face, as the market prices in the company’s ongoing struggles.

Financial Trend: Persistent Weakness and Negative Momentum

The financial trend for Hazoor Multi Projects Ltd remains deeply negative. The company’s quarterly results have consistently disappointed, with declining sales and profitability. The year-to-date and one-year returns of -32.46% starkly contrast with the Sensex’s positive 9.06% return, highlighting the stock’s underperformance in a generally bullish market environment.

Operating cash flows have been negative, and the company’s inability to generate positive earnings over multiple quarters raises concerns about its operational viability. Despite a strong institutional holding of 24.67%, which increased by 1.56% in the previous quarter, the fundamental trends do not support a turnaround in the near term.

Technical Analysis: Shift to Bearish Sentiment

The downgrade to Strong Sell is largely driven by a deterioration in technical indicators. The technical grade shifted from mildly bearish to outright bearish, reflecting increasing negative momentum. Key technical signals include:

• Moving averages on the daily chart are bearish, indicating downward price pressure.


• Bollinger Bands on both weekly and monthly charts show bearish trends, suggesting volatility skewed to the downside.


• MACD readings are mixed, mildly bullish on the weekly but mildly bearish on the monthly timeframe, indicating short-term indecision but longer-term weakness.


• RSI on weekly and monthly charts shows no clear signal, reflecting a lack of strong momentum either way.


• KST (Know Sure Thing) oscillators are mildly bullish weekly but mildly bearish monthly, reinforcing the mixed but overall negative technical outlook.


• Dow Theory analysis confirms a mildly bearish stance on both weekly and monthly scales.

Price action has been weak, with the stock closing at ₹34.97 on 1 Jan 2026, down 5.13% from the previous close of ₹36.86. The 52-week high stands at ₹57.80, while the low is ₹26.80, indicating a wide trading range but recent weakness near the lower end.

Comparative Performance and Market Context

Over longer horizons, Hazoor Multi Projects Ltd has delivered exceptional returns, with a 3-year return of 390.10%, a 5-year return of 11,752.83%, and a 10-year return of 21,912.40%, vastly outperforming the Sensex’s respective returns of 40.07%, 78.47%, and 226.30%. This historical outperformance contrasts sharply with recent underperformance, signalling a significant shift in the company’s trajectory.

However, the recent negative trends in financial results and technical indicators have overshadowed this legacy, prompting a reassessment of the stock’s investment merit.

Institutional Confidence Amidst Challenges

Despite the downgrade and weak fundamentals, institutional investors hold a significant stake of 24.67% in Hazoor Multi Projects Ltd, having increased their holdings by 1.56% in the previous quarter. This suggests some level of confidence or strategic positioning by sophisticated investors who may be anticipating a recovery or value opportunity at current depressed levels.

Nevertheless, the overall investment grade of Strong Sell reflects the consensus view that risks currently outweigh potential rewards, especially given the company’s poor recent financial trends and bearish technical outlook.

Conclusion: Caution Advised for Investors

The downgrade of Hazoor Multi Projects Ltd to Strong Sell is a clear signal for investors to exercise caution. The company’s deteriorating financial performance, negative earnings trajectory, and bearish technical indicators combine to create a challenging investment environment. While valuation metrics appear attractive, they are overshadowed by fundamental weaknesses and sustained underperformance relative to the broader market.

Investors should closely monitor upcoming quarterly results and technical developments before considering exposure to this Realty sector stock. Given the current outlook, alternative investment opportunities with stronger financial health and positive technical momentum may offer superior risk-adjusted returns.

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