Current Rating and Its Significance
MarketsMOJO currently assigns Manomay Tex India Ltd a 'Hold' rating, indicating a neutral stance on the stock. This suggests that investors should neither aggressively buy nor sell the shares at present, but rather monitor the company’s performance and market conditions closely. The 'Hold' rating reflects a balance between the company’s strengths and challenges as assessed through multiple parameters including quality, valuation, financial trend, and technical outlook.
Rating Update Context
The rating was revised from 'Sell' to 'Hold' on 12 January 2026, accompanied by a 10-point increase in the Mojo Score from 48 to 58. This improvement signals a more favourable view of the stock’s prospects compared to the previous assessment. However, it is important to note that the analysis below is based on the latest data as of 24 January 2026, providing an up-to-date perspective on the company’s financial health and market performance.
Quality Assessment
As of 24 January 2026, Manomay Tex India Ltd’s quality grade is assessed as average. The company operates in the Garments & Apparels sector and is classified as a microcap stock. Despite its niche market presence, the firm faces challenges in long-term growth, with net sales declining at an annualised rate of -1.58% over the past five years. The latest quarterly results for September 2025 showed net sales of ₹166.15 crores, reflecting a contraction of -5.86% compared to the previous period. This subdued sales performance tempers the overall quality outlook.
Valuation Perspective
Valuation metrics present a more attractive picture. The company’s return on capital employed (ROCE) stands at 10.9%, which is reasonable for its sector. Additionally, the enterprise value to capital employed ratio is a modest 1.5, indicating that the stock is trading at a discount relative to its peers’ historical valuations. This valuation attractiveness is further supported by a price-to-earnings-to-growth (PEG) ratio of 2.3, suggesting that the stock’s price growth is somewhat aligned with its earnings growth. Investors seeking value opportunities may find this aspect encouraging.
Financial Trend and Stability
The financial trend for Manomay Tex India Ltd is currently flat. The company’s ability to service debt is a concern, with a high Debt to EBITDA ratio of 4.25 times, signalling elevated leverage and potential risk in meeting financial obligations. Profit growth over the past year has been positive, with an 8.9% increase, while the stock has delivered a 6.02% return over the same period. Notably, the stock has outperformed the BSE500 index in each of the last three annual periods, demonstrating consistent returns despite the flat financial trend. However, the lack of robust sales growth and high leverage remain key considerations for investors.
Technical Outlook
From a technical standpoint, the stock exhibits a mildly bullish trend. Recent price movements show a 1-month gain of 5.29% and a 3-month gain of 7.71%, with a 6-month return of 35.34%. Year-to-date, the stock has appreciated by 8.99%, although it experienced a 2.5% decline on the most recent trading day. These technical signals suggest moderate positive momentum, which may support the 'Hold' rating by indicating potential for further gains balanced against short-term volatility.
Investor Implications
For investors, the 'Hold' rating on Manomay Tex India Ltd implies a cautious approach. The company’s attractive valuation and consistent returns provide some upside potential, but the average quality grade, flat financial trend, and high debt levels warrant prudence. Investors should consider monitoring quarterly results and debt servicing capacity closely, while also keeping an eye on sector developments in Garments & Apparels. The mildly bullish technical indicators may offer tactical entry or exit points, but a clear catalyst for sustained growth remains to be seen.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Shareholding and Market Capitalisation
Manomay Tex India Ltd is primarily promoter-owned, which often aligns management interests with those of shareholders. The company remains a microcap stock, which can imply higher volatility and liquidity considerations for investors. Market participants should weigh these factors alongside the company’s fundamentals and technical signals when making investment decisions.
Summary of Returns and Performance
The latest data shows that Manomay Tex India Ltd has delivered a 6.02% return over the past year, outperforming the BSE500 index consistently over the last three annual periods. Shorter-term returns are also positive, with a 6-month gain of 35.34% and a 3-month gain of 7.71%. Despite a recent 2.5% decline in a single day, the overall trend remains moderately positive. These returns reflect a stock that has managed to generate value for shareholders amid a challenging operating environment.
Conclusion
In conclusion, Manomay Tex India Ltd’s 'Hold' rating by MarketsMOJO reflects a balanced view of the company’s current position as of 24 January 2026. While valuation and technical indicators offer some encouragement, concerns around debt levels, flat financial trends, and modest quality metrics suggest that investors should adopt a measured approach. Monitoring ongoing performance and sector dynamics will be crucial for those holding or considering this stock in their portfolios.
Unlock special upgrade rates for a limited period. Start Saving Now →
