Current Rating Overview
On 14 Nov 2025, IST Ltd’s rating was revised to Strong Sell by MarketsMOJO, reflecting a significant reassessment of the company’s prospects. The Mojo Score dropped sharply from 41 to 21, signalling heightened concerns about the stock’s risk and return profile. This Strong Sell rating indicates that investors should exercise caution, as the stock currently exhibits multiple weaknesses across key evaluation parameters.
Here’s How IST Ltd Looks Today
As of 03 February 2026, IST Ltd remains a microcap player in the Auto Components & Equipments sector, with a market capitalisation reflecting its relatively small size. The stock’s recent price movements show a modest positive change of 1.02% on the day, but over longer periods, the trend is decidedly negative. The stock has declined by 8.55% over the past month and 18.79% over the last year, underperforming the broader market benchmark BSE500, which has delivered a 9.01% return in the same period.
Quality Assessment
The company’s quality grade is assessed as average, but several indicators point to operational challenges. The Return on Equity (ROE) stands at a low 9.47%, signalling limited profitability generated from shareholders’ funds. Additionally, the Return on Capital Employed (ROCE) is weak at 11.52%, indicating suboptimal utilisation of capital resources. The quarterly Profit After Tax (PAT) has declined sharply by 28.2% compared to the previous four-quarter average, highlighting recent earnings pressure. Inventory turnover is also low at 9.10 times, suggesting potential inefficiencies in managing stock levels.
Valuation Considerations
IST Ltd’s valuation is currently rated as very expensive. Despite the company’s modest ROE of 8.8%, the stock trades at a Price to Book (P/B) ratio of approximately 0.5, which may appear low but is considered high relative to its earnings and growth prospects. This valuation disconnect implies that investors are paying a premium for a stock with deteriorating fundamentals. The stock’s negative returns of nearly 19.5% over the past year, coupled with a 10% decline in profits, further underscore the valuation risks.
Financial Trend Analysis
The financial trend for IST Ltd is negative. Over the last five years, net sales have contracted at an annual rate of 2.00%, while operating profit has declined by 2.39% annually. This persistent shrinkage in top-line and operating profitability points to structural challenges in the business. The latest quarterly PAT figure of ₹28.63 crores reflects a significant downturn, and the company’s inability to generate consistent growth raises concerns about its long-term viability.
Technical Outlook
The technical grade for IST Ltd is bearish, reflecting weak price momentum and negative market sentiment. The stock’s performance over multiple time frames confirms this trend, with losses of 19.33% over three months and 22.78% over six months. The lack of support from institutional investors is notable, as domestic mutual funds hold no stake in the company. This absence of institutional backing often signals a lack of confidence in the stock’s near-term prospects.
Implications for Investors
The Strong Sell rating from MarketsMOJO suggests that investors should approach IST Ltd with caution. The combination of average quality, very expensive valuation, negative financial trends, and bearish technical indicators paints a challenging picture. Investors seeking exposure to the Auto Components & Equipments sector may find better risk-adjusted opportunities elsewhere, given IST Ltd’s underperformance relative to the broader market and peers.
Summary of Key Metrics as of 03 February 2026
- Mojo Score: 21.0 (Strong Sell)
- Market Cap: Microcap
- ROE: 9.47%
- ROCE: 11.52%
- Price to Book Value: ~0.5
- 1-Year Stock Return: -18.79%
- 5-Year Net Sales Growth: -2.00% CAGR
- 5-Year Operating Profit Growth: -2.39% CAGR
- Quarterly PAT: ₹28.63 crores (down 28.2%)
- Inventory Turnover Ratio: 9.10 times
- Domestic Mutual Fund Holding: 0%
Transformation in full progress! This Micro Cap from Auto Ancillary just achieved sustainable profitability after tough times. Be early to witness this powerful comeback story!
- - Sustainable profitability reached
- - Post-turnaround strength
- - Comeback story unfolding
Conclusion
IST Ltd’s current Strong Sell rating reflects a confluence of factors that weigh heavily against the stock’s attractiveness. The company’s average operational quality is overshadowed by a very expensive valuation and deteriorating financial trends. Technical indicators reinforce the bearish outlook, while the absence of institutional support further dampens confidence. Investors should carefully consider these elements before allocating capital to IST Ltd, as the stock faces significant headwinds in the near to medium term.
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