Rating Overview and Context
On 01 October 2025, MarketsMOJO revised Maxgrow India Ltd’s rating from 'Sell' to 'Hold', reflecting a notable improvement in the company’s overall mojo score, which increased by 20 points from 40 to 60. This shift indicates a more balanced outlook on the stock, suggesting that while it may not be a strong buy, it is no longer considered a sell. The 'Hold' rating implies that investors should maintain their current positions and monitor the stock closely for further developments.
It is important to emphasise that all financial data, returns, and fundamental indicators referenced in this article are current as of 03 February 2026, ensuring that readers receive the most relevant and timely information for their investment decisions.
Quality Assessment
As of 03 February 2026, Maxgrow India Ltd’s quality grade remains below average. The company has struggled with operating losses and exhibits weak long-term fundamental strength. Over the past five years, net sales growth has been negligible, and operating profit has remained stagnant at 0%. This lack of consistent growth and profitability weighs on the company’s quality rating, signalling caution for investors seeking stable earnings and robust business models.
Additionally, the company’s ability to service its debt is limited, with an average EBIT to interest ratio of zero, indicating that earnings before interest and taxes are insufficient to cover interest expenses. This financial weakness further contributes to the below-average quality grade and suggests that Maxgrow India Ltd faces challenges in sustaining its operations without additional capital or restructuring.
Valuation Perspective
Despite the quality concerns, Maxgrow India Ltd’s valuation is currently very attractive. The stock trades at a price-to-book value of just 0.1, which is significantly low and indicates that the market values the company at a fraction of its book value. This valuation metric may appeal to value investors who seek opportunities in undervalued stocks with potential for price appreciation.
The company’s return on equity (ROE) stands at 3%, which, while modest, supports the notion that the stock is undervalued relative to its earnings capacity. The low valuation combined with a positive ROE suggests that the market may be pricing in risks related to the company’s operational challenges but that there could be upside if these issues are addressed.
Financial Trend and Recent Performance
Currently, Maxgrow India Ltd shows positive financial trends. The latest quarterly results for September 2025 reveal a significant surge in net sales, which reached ₹5,304.87 crores, representing a remarkable 236.4% increase compared to the previous four-quarter average. This spike in sales is accompanied by the highest quarterly profit after tax (PAT) of ₹94.53 crores and a peak PBDIT (profit before depreciation, interest, and taxes) of ₹94.84 crores.
These figures indicate a strong operational performance in the recent quarter, which may signal a turnaround or a successful execution of growth initiatives. However, it is worth noting that over the past year, the stock’s returns have been flat at 0.00%, and profits have not shown significant growth, reflecting some volatility and uncertainty in the company’s financial trajectory.
Technical Outlook
The technical grade for Maxgrow India Ltd is bullish as of 03 February 2026. The stock has demonstrated strong momentum in recent trading sessions, with a one-day gain of 4.99%, a one-week increase of 15.72%, and a one-month surge of 40.59%. Over the past six months, the stock has delivered an extraordinary return of 705.46%, highlighting significant investor interest and positive market sentiment.
This bullish technical trend suggests that the stock is currently in an upward trajectory, supported by strong buying pressure. However, investors should remain cautious given the company’s fundamental challenges and monitor technical signals for any signs of reversal.
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What the Hold Rating Means for Investors
The 'Hold' rating assigned to Maxgrow India Ltd by MarketsMOJO reflects a balanced view of the stock’s prospects. It suggests that while the company is not currently a compelling buy due to its below-average quality and operational challenges, it is also not a sell given its attractive valuation and recent positive financial trends.
Investors should interpret this rating as a signal to maintain existing positions rather than initiate new ones aggressively. The stock’s very low price-to-book ratio and recent quarterly performance improvements offer potential upside, but the weak long-term fundamentals and debt servicing concerns warrant caution.
For those considering Maxgrow India Ltd, it is advisable to monitor upcoming quarterly results and market developments closely. Improvements in profitability, sustained sales growth, and better debt management could eventually justify a more positive rating. Conversely, any deterioration in these areas might prompt a reassessment of the stock’s outlook.
Summary of Key Metrics as of 03 February 2026
To recap, the current data shows:
- Mojo Score: 60.0, corresponding to a 'Hold' grade
- Quality Grade: Below average, reflecting operational and debt servicing challenges
- Valuation Grade: Very attractive, with a price-to-book value of 0.1 and ROE of 3%
- Financial Grade: Positive, supported by strong recent quarterly sales and profit growth
- Technical Grade: Bullish, with significant recent price gains including a 705.46% return over six months
These metrics collectively underpin the current 'Hold' rating and provide a comprehensive picture of Maxgrow India Ltd’s investment profile.
Investor Considerations
Given the mixed signals from quality and valuation perspectives, investors should weigh their risk tolerance carefully. The stock’s microcap status may also contribute to higher volatility and liquidity risks. Those with a longer-term horizon and a value investing approach might find the current valuation compelling, provided they are comfortable with the company’s operational risks.
In contrast, investors seeking stable earnings growth and strong fundamentals may prefer to wait for clearer signs of sustained improvement before increasing exposure to Maxgrow India Ltd.
Conclusion
Maxgrow India Ltd’s 'Hold' rating by MarketsMOJO, last updated on 01 October 2025, reflects a nuanced assessment of the company’s current standing as of 03 February 2026. While the stock benefits from an attractive valuation and recent positive financial trends, ongoing quality concerns and debt servicing weaknesses temper enthusiasm. Investors are advised to maintain positions with caution and monitor future developments closely to reassess the stock’s potential.
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