Current Rating and Its Significance
MarketsMOJO assigns Manugraph India Ltd a 'Strong Sell' rating, reflecting a cautious stance on the stock's near- and long-term prospects. This rating indicates that investors should consider reducing or avoiding exposure to the stock based on its present financial health, valuation, and market behaviour. The 'Strong Sell' grade is derived from a composite Mojo Score of 29.0, which is notably below average and signals significant concerns across multiple evaluation parameters.
Quality Assessment: Below Average Fundamentals
As of 14 January 2026, Manugraph India Ltd exhibits below average quality metrics. The company has been grappling with operating losses, which undermines its long-term fundamental strength. Over the past five years, net sales have grown at a modest annual rate of 2.30%, while operating profit has declined by 15.05%, signalling operational challenges. Furthermore, the company’s ability to service debt remains weak, with an average EBIT to interest ratio of -5.23, indicating that earnings before interest and taxes are insufficient to cover interest expenses. This financial strain raises concerns about the sustainability of the company’s operations and its capacity to generate consistent profits.
Valuation: Expensive Despite Discounted Price-to-Book
Currently, Manugraph India Ltd is considered expensive relative to its earnings and returns. The stock trades at a price-to-book value of 0.8, which is a discount compared to its peers’ historical valuations. However, this apparent discount masks underlying issues, as the company’s return on equity (ROE) stands at a negative -1.7%, reflecting losses rather than shareholder value creation. Despite the stock’s 21.21% negative return over the past year, the company’s profits have risen by 94.1%, suggesting some operational improvements that have yet to translate into positive returns for investors. This mixed picture complicates valuation assessments and warrants caution.
Financial Trend: Positive Yet Fragile
The latest data shows a very positive financial grade for Manugraph India Ltd, indicating some improvement in financial metrics. However, this positive trend is fragile and overshadowed by the company’s weak long-term fundamentals and operational losses. The stock’s performance over various time frames has been disappointing, with a 32.00% decline over three months and a 25.71% drop over six months. Year-to-date, the stock has fallen 6.31%, and over the last year, it has underperformed the BSE500 index, delivering a -21.21% return. These figures highlight the challenges the company faces in regaining investor confidence and market momentum.
Technical Analysis: Bearish Outlook
From a technical perspective, Manugraph India Ltd is rated bearish. The stock’s price action reflects sustained downward pressure, with no clear signs of reversal in the near term. This bearish technical grade aligns with the negative returns and weak fundamentals, reinforcing the rationale behind the 'Strong Sell' rating. Investors relying on technical indicators should be wary of entering positions until a more positive trend emerges.
Stock Returns and Market Performance
As of 14 January 2026, Manugraph India Ltd’s stock returns have been underwhelming across multiple periods. The one-day change is flat at 0.00%, but the one-week return is down 2.50%, and the one-month return has declined by 5.40%. The three-month and six-month returns are significantly negative at -32.00% and -25.71%, respectively. Year-to-date, the stock has lost 6.31%, and over the past year, it has delivered a -21.21% return. This sustained underperformance relative to broader market indices and sector peers underscores the challenges facing the company and supports the cautious investment stance.
Sector Context and Market Capitalisation
Manugraph India Ltd operates within the industrial manufacturing sector, a space that has seen mixed performance amid evolving economic conditions. The company is classified as a microcap, which typically entails higher volatility and risk compared to larger, more established firms. Investors should consider these sector and market capitalisation factors when evaluating the stock’s risk profile and potential for recovery.
From struggle to strength! This Small Cap from Textile - Machinery is showing early turnaround signals that look promising. Position yourself now for explosive growth potential ahead!
- - Early turnaround signals
- - Explosive growth potential
- - Textile - Machinery recovery play
Position for Explosive Growth →
What the Strong Sell Rating Means for Investors
For investors, the 'Strong Sell' rating on Manugraph India Ltd signals a recommendation to reduce or exit holdings in the stock. This rating reflects a convergence of weak quality metrics, expensive valuation relative to returns, a fragile financial trend, and bearish technical indicators. While some financial improvements are noted, the overall outlook remains negative, suggesting that the stock may continue to face downward pressure in the near term.
Investors should carefully weigh the risks associated with the company’s operational losses and weak debt servicing ability against any potential turnaround signals. Given the stock’s microcap status and sector dynamics, volatility is likely to persist. Those considering exposure to Manugraph India Ltd should monitor developments closely and consider alternative opportunities with stronger fundamentals and more favourable technical setups.
Summary
In summary, Manugraph India Ltd’s current 'Strong Sell' rating by MarketsMOJO, updated on 06 January 2026, is supported by a comprehensive analysis of its quality, valuation, financial trend, and technical outlook as of 14 January 2026. The company’s below average fundamentals, expensive valuation despite negative returns, fragile financial improvements, and bearish technical stance collectively justify a cautious approach. Investors are advised to consider this rating seriously when making portfolio decisions.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
