Manoj Vaibhav Gems N Jewellers Ltd Upgraded to Hold on Technical and Financial Improvements

Technical Trends Signal Mild Optimism

The primary catalyst for the upgrade lies in the technical assessment of the stock, which has moved from a bearish to a mildly bearish stance. Key technical indicators present a complex but improving picture. The Moving Average Convergence Divergence (MACD) remains bearish on a weekly basis, signalling some lingering downward momentum, though monthly data is inconclusive. The Relative Strength Index (RSI) shows no clear signal on both weekly and monthly charts, indicating a neutral momentum phase.

Bollinger Bands on the weekly chart have turned bullish, suggesting increased price volatility with upward bias, while the monthly view remains mildly bearish. Daily moving averages are mildly bearish, reflecting short-term caution among traders. The Know Sure Thing (KST) indicator is bearish weekly, but Dow Theory readings have improved to mildly bullish on a weekly basis, hinting at a potential trend reversal. On-balance volume (OBV) remains neutral, showing no significant accumulation or distribution.

These mixed signals collectively justify a cautious upgrade, recognising that while the stock is not yet in a strong uptrend, the technical deterioration has slowed and some positive momentum is building.

Valuation Remains Attractive Despite Past Underperformance

From a valuation standpoint, Manoj Vaibhav Gems N Jewellers Ltd is trading at a discount relative to its peers’ historical averages. The company’s Return on Capital Employed (ROCE) stands at a respectable 14.4%, underscoring efficient use of capital. The Enterprise Value to Capital Employed ratio is a low 1.1, signalling that the stock is reasonably priced given its asset base and earnings potential.

Despite a challenging year with the stock price declining 23% over the last 12 months, the company’s Price/Earnings to Growth (PEG) ratio is a modest 0.5, indicating undervaluation relative to earnings growth. This valuation appeal is tempered by the stock’s 52-week high of ₹280.80 and a current price of ₹187.10, suggesting some recovery potential but also room for volatility.

Financial Trends Show Mixed Signals with Recent Quarterly Strength

Financially, the company has demonstrated encouraging signs in the recent quarter Q2 FY25-26. Net sales surged to ₹755.82 crores, marking a 26.3% growth compared to the previous four-quarter average. Operating profit before depreciation, interest, and taxes (PBDIT) reached a quarterly high of ₹55.43 crores, while the operating profit to interest coverage ratio improved significantly to 5.90 times, indicating enhanced ability to service debt.

However, long-term growth remains subdued. Over the past five years, net sales have grown at an annualised rate of 8.42%, and operating profit has increased by only 5.75% annually. This slow growth trajectory partly explains the stock’s underperformance relative to benchmarks such as the BSE500 and Sensex, with Manoj Vaibhav Gems delivering a negative 23% return over the last year compared to Sensex’s 7.97% gain.

Profit growth of 18.6% over the past year contrasts with the stock price decline, suggesting a disconnect between fundamentals and market sentiment. The PEG ratio of 0.5 further supports the notion that the stock may be undervalued relative to earnings growth potential.

Quality Assessment Reflects Moderate Strength Amid Market Skepticism

The company’s overall quality rating remains moderate, reflected in a Mojo Score of 51.0 and a Mojo Grade upgrade from Sell to Hold as of 9 February 2026. The market capitalisation grade stands at 4, indicating a mid-cap status with moderate liquidity and investor interest.

One notable concern is the absence of domestic mutual fund holdings, which remain at 0%. Given that mutual funds typically conduct rigorous on-the-ground research, their lack of exposure may signal reservations about the company’s price or business model. This lack of institutional endorsement weighs on the quality assessment despite recent operational improvements.

Additionally, the stock’s returns over various periods highlight underperformance: a 1-week return of 11.4% outpaces the Sensex’s 2.94%, and a 1-month return of 5.14% also exceeds the benchmark’s 0.59%. Yet, the year-to-date return is a modest 3.48% against a Sensex decline of 1.36%, and the one-year return remains deeply negative at -23%. This volatility and inconsistency in returns contribute to the Hold rating rather than a more bullish stance.

Market Performance and Price Action

On 10 February 2026, Manoj Vaibhav Gems N Jewellers Ltd closed at ₹187.10, up 8.03% from the previous close of ₹173.20. The stock traded within a range of ₹177.00 to ₹189.85 during the day, showing intraday strength. Despite this recent rally, the stock remains well below its 52-week high of ₹280.80 and above its 52-week low of ₹158.20.

Comparing returns with the Sensex reveals a mixed picture. Manoj Vaibhav outperformed the Sensex over short-term periods such as one week (11.4% vs 2.94%) and one month (5.14% vs 0.59%), but lagged significantly over the one-year horizon (-23% vs 7.97%). Longer-term data for three, five, and ten years is not available for the stock, but the Sensex’s robust gains over these periods highlight the company’s relative underperformance.

Outlook and Investor Considerations

The upgrade to Hold reflects a cautious optimism. Manoj Vaibhav Gems N Jewellers Ltd has demonstrated improved technical signals and encouraging quarterly financial results, particularly in sales growth and profitability metrics. Valuation remains attractive relative to peers, supported by a low PEG ratio and solid ROCE.

However, the company’s long-term growth rates remain modest, and the lack of institutional ownership raises questions about broader market confidence. The stock’s recent price volatility and underperformance against major indices suggest investors should remain vigilant.

For investors considering Manoj Vaibhav, the Hold rating implies that while the stock is no longer a sell, it does not yet warrant a Buy recommendation. Monitoring upcoming quarterly results, technical developments, and any shifts in institutional interest will be critical to reassessing the stock’s potential.

Summary of Ratings and Scores

As of 9 February 2026, the company’s Mojo Score stands at 51.0, with a Mojo Grade upgraded to Hold from Sell. The Market Cap Grade is 4, reflecting mid-cap status. Technical grades have improved from bearish to mildly bearish, while financial trends show positive quarterly momentum but subdued long-term growth. Valuation metrics remain attractive, and quality assessments are moderate due to limited institutional participation.

Overall, Manoj Vaibhav Gems N Jewellers Ltd presents a mixed investment case with recent improvements justifying a Hold rating, but with caution warranted given the company’s historical underperformance and market scepticism.

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