Indiabulls Limited is Rated Hold by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Indiabulls Limited indicates a neutral stance on the stock, suggesting that investors should neither aggressively buy nor sell at this juncture. This rating reflects a balanced view of the company’s prospects, considering its strengths and challenges across multiple parameters. The rating was adjusted on 08 December 2025, when the Mojo Score declined from 75 to 68, moving the grade from 'Buy' to 'Hold'. This change signals a more cautious outlook, urging investors to monitor developments closely while recognising the stock’s mixed signals.

Here’s How Indiabulls Limited Looks Today

As of 05 January 2026, Indiabulls Limited operates within the Diversified Commercial Services sector and is classified as a microcap company. The stock has experienced a modest decline recently, with a one-day drop of 3.35% and a one-month fall of 16.32%. Despite these short-term fluctuations, the stock’s one-year return remains nearly flat at +0.06%, reflecting a period of relative stability amid volatility.

Quality Assessment

The company’s quality grade is assessed as average. This reflects a mixed operational profile where certain financial indicators show strength, but others highlight areas of concern. Notably, Indiabulls has a low ability to service its debt, evidenced by a Debt to EBITDA ratio of -1.00 times, which is a negative indicator for long-term financial health. Additionally, the average Return on Equity (ROE) stands at a low 0.16%, signalling limited profitability relative to shareholders’ funds. These factors suggest that while the company maintains operational continuity, its efficiency in generating shareholder value remains subdued.

Valuation Considerations

Valuation is a key factor influencing the 'Hold' rating. Currently, Indiabulls is considered very expensive, trading at a Price to Book Value ratio of 1.4, which is above the average for its peer group. This premium valuation is not fully supported by the company’s profitability metrics, as the ROE remains modest at 0.6%. The stock’s Price/Earnings to Growth (PEG) ratio of 2.1 further indicates that the market prices in significant growth expectations, which may not be fully justified given the company’s current fundamentals. Investors should be cautious about the premium they pay relative to the underlying earnings and growth prospects.

Financial Trend and Growth Dynamics

Indiabulls Limited exhibits an outstanding financial grade, driven by robust growth in key operational metrics. The company’s operating profit has surged at an annualised rate of 70.61%, a remarkable performance that underscores strong operational leverage. Quarterly net sales have also shown exceptional growth, rising by 357.6% compared to the previous four-quarter average, reaching ₹236.27 crores. This surge in sales and profitability was reflected in the company’s September 2025 results, which were described as outstanding.

Moreover, the company’s operating profit to interest coverage ratio stands at a healthy 7.30 times, indicating a strong ability to meet interest obligations from operating earnings. The debtors turnover ratio of 8.47 times further suggests efficient management of receivables, contributing positively to cash flow dynamics. These trends highlight a company that is improving its core financial health despite challenges in other areas.

Technical Outlook

The technical grade for Indiabulls Limited is mildly bullish, reflecting some positive momentum in the stock price despite recent declines. Over the past year, the stock has delivered a near-flat return of +0.06%, but the recent downward trend over one month (-16.32%) and one week (-7.94%) indicates short-term pressure. Investors should weigh these technical signals alongside fundamental factors to gauge entry or exit points effectively.

Summary for Investors

In summary, the 'Hold' rating for Indiabulls Limited reflects a nuanced view of the company’s current position. While the firm demonstrates outstanding financial growth and operational improvements, concerns around valuation and debt servicing capacity temper enthusiasm. The stock’s premium valuation relative to modest profitability metrics suggests limited upside potential at present, making it prudent for investors to maintain a cautious stance.

Investors should monitor the company’s ability to sustain its impressive operating profit growth and improve its debt metrics. Additionally, keeping an eye on market sentiment and technical indicators will be important to identify potential shifts in momentum. For those already holding the stock, the 'Hold' rating advises patience and close observation rather than immediate action.

Key Metrics at a Glance (As of 05 January 2026)

• Mojo Score: 68.0 (Hold)

• Market Capitalisation: Microcap segment

• Debt to EBITDA Ratio: -1.00 times (indicating challenges in debt servicing)

• Return on Equity (average): 0.16%

• Price to Book Value: 1.4 (very expensive valuation)

• PEG Ratio: 2.1 (suggesting growth expectations priced in)

• Operating Profit Growth (annualised): 70.61%

• Net Sales Quarterly Growth: 357.6% vs previous 4Q average

• Operating Profit to Interest Coverage: 7.30 times

• Debtors Turnover Ratio (Half Year): 8.47 times

• Stock Returns: 1D: -3.35%, 1W: -7.94%, 1M: -16.32%, 3M: -8.57%, 6M: -4.91%, YTD: -7.88%, 1Y: +0.06%

These figures collectively illustrate a company with strong operational momentum but facing valuation and leverage headwinds, justifying the current 'Hold' stance.

Conclusion

Indiabulls Limited’s current 'Hold' rating by MarketsMOJO reflects a balanced assessment of its financial and market position as of early January 2026. Investors should consider the company’s strong operating profit growth and improving cash flow metrics alongside its expensive valuation and debt servicing challenges. This rating advises a measured approach, encouraging investors to stay informed and evaluate future developments before making significant portfolio moves.

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