HB Portfolio Ltd is Rated Strong Sell

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HB Portfolio Ltd is rated Strong Sell by MarketsMojo. This rating was last updated on 27 February 2025. However, the analysis and financial metrics discussed here reflect the stock’s current position as of 25 December 2025, providing investors with the latest insights into the company’s performance and outlook.

Current Rating and Its Significance

The Strong Sell rating assigned to HB Portfolio Ltd indicates a clear recommendation for investors to avoid holding or to consider exiting the stock. This rating reflects a combination of weak fundamentals, expensive valuation, deteriorating financial trends, and unfavourable technical indicators. It serves as a cautionary signal, suggesting that the stock is expected to underperform relative to the broader market and its peers in the near to medium term.

Here’s How HB Portfolio Ltd Looks Today

As of 25 December 2025, HB Portfolio Ltd remains a microcap player in the Non-Banking Financial Company (NBFC) sector. The company’s Mojo Score currently stands at 7.0, which corresponds to the Strong Sell grade. This score reflects a significant decline from its previous Sell rating, with a drop of 26 points since the rating change on 27 February 2025.

Quality Assessment

The company’s quality grade is below average, signalling concerns about its operational and financial robustness. The average Return on Equity (ROE) is a mere 2.02%, indicating limited profitability relative to shareholder equity. More troubling is the negative ROE of -0.6% reported recently, which highlights losses eroding shareholder value. The company has reported negative results for four consecutive quarters, underscoring persistent challenges in generating sustainable earnings.

Valuation Perspective

HB Portfolio Ltd is currently valued as very expensive relative to its fundamentals. Despite its weak earnings, the stock trades at a Price to Book (P/B) ratio of 0.2, which is a premium compared to its peers’ historical valuations. This disconnect between price and underlying value suggests that the market is pricing in expectations that may not be supported by the company’s financial health. Investors should be wary of this overvaluation, especially given the company’s deteriorating profitability and cash position.

Financial Trend Analysis

The financial trend for HB Portfolio Ltd is negative. The company’s net sales for the nine months ended recently stand at ₹15.93 crores, reflecting a steep decline of 68.84% compared to prior periods. Profit After Tax (PAT) has also contracted sharply, with a loss of ₹0.80 crores over the same period, marking a 68.84% decrease. Cash and cash equivalents have dwindled to ₹4.84 crores, the lowest level recorded in recent half-yearly reports. These figures illustrate a company struggling to maintain operational momentum and financial stability.

Technical Outlook

Technically, the stock is graded as bearish. The price has shown consistent weakness, with a one-day decline of 2.36%, a one-month drop of 10.08%, and a six-month fall of 33.70%. Year-to-date, the stock has lost 39.23%, and over the past year, it has underperformed the broader market significantly. While the BSE500 index has delivered a positive return of 6.20% over the last 12 months, HB Portfolio Ltd has generated a negative return of 39.38%, highlighting its relative weakness and lack of investor confidence.

Implications for Investors

For investors, the Strong Sell rating signals caution. The combination of weak quality metrics, expensive valuation, deteriorating financial trends, and bearish technical signals suggests that the stock is likely to continue facing headwinds. Investors should carefully consider the risks of holding this stock, especially given its underperformance relative to the market and peers. The current data as of 25 December 2025 indicates that HB Portfolio Ltd is not positioned favourably for near-term recovery or growth.

Summary of Key Metrics as of 25 December 2025

Mojo Score: 7.0 (Strong Sell)

Quality Grade: Below Average

Valuation Grade: Very Expensive

Financial Grade: Negative

Technical Grade: Bearish

ROE: 2.02% average; -0.6% recent

Net Sales (9M): ₹15.93 crores, down 68.84%

PAT (9M): -₹0.80 crores, down 68.84%

Cash & Cash Equivalents (HY): ₹4.84 crores

1 Year Stock Return: -39.38%

BSE500 1 Year Return: +6.20%

Conclusion

HB Portfolio Ltd’s current Strong Sell rating by MarketsMOJO reflects a comprehensive assessment of its weak fundamentals, stretched valuation, negative financial trends, and bearish technical outlook. Investors should approach this stock with caution, recognising the risks inherent in its current profile. While the company operates in the NBFC sector, its recent performance and financial health do not support a positive investment stance at this time. Monitoring future developments and quarterly results will be essential for any reconsideration of this rating.

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