Jayabharat Credit Ltd is Rated Sell

Current Rating and Its Implications for Investors

MarketsMOJO’s 'Sell' rating on Jayabharat Credit Ltd indicates a cautious stance towards the stock, suggesting that investors should consider reducing exposure or avoiding new positions at this time. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was revised from 'Hold' to 'Sell' on 26 November 2025, reflecting a significant reassessment of the company’s prospects. Despite this change, it is crucial to understand the stock’s present-day fundamentals and market behaviour as of 26 December 2025 to make informed investment decisions.

Here’s How Jayabharat Credit Ltd Looks Today

As of 26 December 2025, Jayabharat Credit Ltd remains a microcap player in the Non Banking Financial Company (NBFC) sector. The company’s Mojo Score currently stands at 33.0, categorised under the 'Sell' grade, down from a previous score of 54. This 21-point decline in the Mojo Score underscores the challenges the company faces in maintaining robust financial health and investor confidence.

Quality Assessment: Below Average Fundamentals

The quality grade assigned to Jayabharat Credit Ltd is below average, signalling concerns about the company’s long-term fundamental strength. Notably, the company reports a negative book value, which is a critical red flag for investors as it implies that liabilities exceed assets on the balance sheet. This weak capital structure raises questions about the sustainability of operations and the ability to weather financial stress.

Moreover, the company’s net sales have declined at an annualised rate of -18.90%, indicating shrinking top-line performance. Operating profit has remained flat, showing no growth momentum. These factors collectively point to a lack of robust growth drivers and operational efficiency, which are essential for a healthy NBFC in a competitive market.

Valuation: Risky Territory

Jayabharat Credit Ltd’s valuation is currently classified as risky. The stock trades at levels that are elevated compared to its historical averages, despite the company’s negative EBITDA. This disconnect between price and earnings quality suggests that the market may be pricing in expectations that are not fully supported by the company’s financial performance.

Investors should be wary of this valuation risk, as it implies a higher probability of price corrections if the company fails to improve its profitability or operational metrics. The risky valuation grade reinforces the 'Sell' rating, signalling that the stock may not offer adequate margin of safety at current levels.

Financial Trend: Flat Performance with Mixed Signals

The financial grade for Jayabharat Credit Ltd is flat, reflecting a lack of significant improvement or deterioration in recent results. The company reported flat results in September 2025, with no key negative triggers identified in the latest quarter. However, the longer-term trend remains concerning due to weak sales growth and negative EBITDA.

Despite these challenges, the stock has delivered strong returns over the past year, with a 1-year return of +75.93% and a year-to-date gain of +68.27% as of 26 December 2025. This divergence between stock price performance and fundamental health suggests speculative interest or market optimism that may not be fully justified by the company’s earnings trajectory, which has only risen by 5% over the same period.

Technical Outlook: Mildly Bullish but Cautious

Technically, Jayabharat Credit Ltd holds a mildly bullish grade. The stock has shown positive momentum in the short to medium term, with gains of +20.13% over three months and +72.73% over six months. However, the one-day change of -4.20% on 26 December 2025 indicates some volatility and potential profit-taking.

While technical indicators may offer some short-term trading opportunities, the overall 'Sell' rating reflects that these signals are insufficient to outweigh the fundamental and valuation concerns. Investors should approach the stock with caution, balancing technical optimism against underlying risks.

What This Means for Investors

For investors, the 'Sell' rating on Jayabharat Credit Ltd serves as a cautionary signal. The combination of below-average quality, risky valuation, flat financial trends, and only mildly bullish technicals suggests that the stock carries elevated risk without commensurate reward potential at present.

Investors holding the stock should consider reviewing their positions in light of these factors, especially given the company’s negative book value and declining sales. Prospective buyers are advised to exercise restraint until there is clear evidence of fundamental improvement and a more attractive valuation.

In summary, while the stock has shown impressive price gains recently, the underlying financial and operational metrics do not support a positive outlook. The 'Sell' rating reflects a prudent stance aimed at protecting investor capital amid uncertain prospects.

Summary of Key Metrics as of 26 December 2025

• Mojo Score: 33.0 (Sell Grade)


• Market Capitalisation: Microcap


• Quality Grade: Below Average


• Valuation Grade: Risky


• Financial Grade: Flat


• Technical Grade: Mildly Bullish


• Stock Returns: 1D -4.20%, 1W +9.51%, 1M +1.69%, 3M +20.13%, 6M +72.73%, YTD +68.27%, 1Y +75.93%


• Net Sales Growth (Annualised): -18.90%


• Operating Profit Growth: 0%


• Profit Growth (1 Year): +5%

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