Kriti Nutrients Ltd Upgraded to Hold by MarketsMOJO on Technical and Valuation Improvements

Technical Trend Shift Spurs Upgrade

The primary catalyst for Kriti Nutrients’ rating upgrade lies in its technical trend improvement. The technical grade has shifted from bearish to mildly bearish, indicating a less negative momentum in the stock’s price action. Key technical indicators present a mixed but cautiously positive picture. The Moving Average Convergence Divergence (MACD) on a weekly basis has turned mildly bullish, suggesting potential upward momentum in the near term, although the monthly MACD remains bearish, reflecting longer-term caution.

Other technical signals such as the Relative Strength Index (RSI) show no clear signal on both weekly and monthly charts, while Bollinger Bands remain mildly bearish across weekly and monthly timeframes. Daily moving averages also indicate a mildly bearish stance, consistent with a cautious market sentiment. The Know Sure Thing (KST) oscillator and Dow Theory assessments remain bearish on both weekly and monthly scales, underscoring that the stock has yet to fully reverse its downtrend.

Despite these mixed signals, the overall technical environment has improved enough to warrant a rating upgrade, reflecting a stabilisation in price action. The stock closed at ₹74.15 on 29 January 2026, up 2.47% from the previous close of ₹72.36, with a 52-week low of ₹63.71 and a high of ₹137.00, indicating significant volatility but recent resilience.

Valuation Remains Attractive Despite Premium Pricing

Kriti Nutrients’ valuation metrics continue to support the Hold rating. The company’s Price to Book Value ratio stands at 1.6, which is considered very attractive relative to its sector peers, despite trading at a premium compared to historical averages. This premium reflects investor confidence in the company’s management efficiency and dividend yield, which currently stands at a robust 4.5%, offering income appeal amid market volatility.

The company’s Return on Equity (ROE) is a strong 16.66%, signalling effective capital utilisation by management. This is complemented by a low average Debt to Equity ratio of 0.06 times, indicating a conservative capital structure with minimal leverage risk. Such financial discipline is a positive sign for investors seeking stability in the edible oil sector, which often faces commodity price fluctuations and margin pressures.

Financial Trend: Flat Performance Amidst Profit Declines

Despite the positive technical and valuation signals, Kriti Nutrients’ recent financial performance has been largely flat, which tempers enthusiasm. The company reported flat results in Q2 FY25-26, with profits declining by 32.4% over the past year. The Profit After Tax (PAT) for the first nine months stands at ₹23.39 crores, reflecting a contraction of 28.21% year-on-year. Operating profit growth over the last five years has been modest at 10.13% annually, while net sales have grown at a 7.55% annual rate, indicating subdued top-line momentum.

Return on Capital Employed (ROCE) for the half-year period is at a relatively low 18.32%, signalling limited efficiency in generating returns from capital investments. These factors contribute to the cautious stance on the stock, as the company has underperformed the broader market significantly. Over the last year, Kriti Nutrients has delivered a negative return of -39.12%, compared to the BSE500 index’s positive 9.89% return, highlighting the stock’s relative weakness.

Long-Term Performance and Market Comparison

Looking at longer-term returns, Kriti Nutrients has shown mixed results. Over three years, the stock has appreciated by 56.60%, outperforming the Sensex’s 38.79% gain in the same period. However, over five and ten years, the stock’s returns of 66.82% and 158.36% respectively lag behind the Sensex’s 75.67% and 236.52% returns, indicating inconsistent long-term growth relative to the broader market.

This uneven performance underscores the challenges the company faces in sustaining growth and profitability in a competitive edible oil industry. The majority shareholding by promoters provides stability but also concentrates control, which investors should monitor for governance and strategic direction.

Summary: Balanced Outlook with Cautious Optimism

The upgrade of Kriti Nutrients Ltd’s investment rating from Sell to Hold reflects a balanced assessment of its current position. The technical indicators have improved sufficiently to reduce bearish sentiment, while valuation metrics and management efficiency remain attractive. However, the company’s flat financial performance, declining profits, and underperformance relative to the market over the past year warrant caution.

Investors should weigh the stock’s high dividend yield and low leverage against its subdued growth prospects and recent earnings volatility. The Hold rating suggests that while the stock is no longer a sell, it does not yet merit a Buy recommendation until clearer signs of sustained financial improvement and stronger technical momentum emerge.

Given the edible oil sector’s inherent cyclicality and competitive pressures, Kriti Nutrients’ future performance will depend on its ability to revive growth, improve profitability, and maintain operational efficiency. Monitoring quarterly results and technical trends will be crucial for investors considering exposure to this stock.

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