Milestone Global Ltd is Rated Sell

Current Rating and Its Implications for Investors

MarketsMOJO’s 'Sell' rating on Milestone Global Ltd indicates a cautious stance towards the stock, suggesting that investors should consider reducing exposure or avoiding new purchases at this time. This rating reflects a combination of factors including the company’s quality, valuation, financial trend, and technical outlook. It is important to understand that this recommendation is based on a comprehensive evaluation of the stock’s current fundamentals and market behaviour as of today, rather than solely on past performance or historical data.

Quality Assessment: Below Average Fundamentals

As of 26 December 2025, Milestone Global Ltd’s quality grade remains below average. The company continues to face operational challenges, evidenced by persistent operating losses and weak long-term fundamental strength. Its ability to service debt is notably strained, with an average EBIT to interest ratio of just 0.43, signalling insufficient earnings before interest and taxes to comfortably cover interest expenses. Additionally, the company’s return on equity (ROE) averages 6.36%, which is modest and indicates limited profitability generated from shareholders’ funds. These factors collectively suggest that the company’s core business operations are under pressure, impacting its overall financial health.

Valuation Perspective: Risky Investment Profile

The valuation grade assigned to Milestone Global Ltd is classified as risky. Currently, the stock trades at valuations that are less favourable compared to its historical averages, reflecting investor concerns about its earnings prospects and financial stability. Over the past year, the stock has delivered a negative return of -26.76%, while profits have declined by approximately 10%. This combination of falling profitability and negative returns contributes to the cautious valuation stance. Investors should be aware that the stock’s price may be vulnerable to further downside if operational improvements do not materialise.

Financial Trend: Flat to Negative Performance

The financial trend for Milestone Global Ltd is currently flat, reflecting a lack of significant improvement or deterioration in recent quarters. The latest quarterly results as of September 2025 show operating losses with PBDIT (profit before depreciation, interest and taxes) at a low of Rs -0.12 crore and PBT (profit before tax) less other income at Rs -0.21 crore. Earnings per share (EPS) also remain negative at Rs -0.20. These figures highlight ongoing challenges in generating positive earnings and improving profitability. The company’s flat financial trend, combined with negative returns over multiple time frames—including a 1-month decline of -16.71% and a 6-month drop of -12.16%—suggests limited momentum in reversing its performance trajectory.

Technical Outlook: Mildly Bullish but Insufficient to Offset Risks

Technically, Milestone Global Ltd exhibits a mildly bullish grade, indicating some positive signals in price movement or trading patterns. However, this technical optimism is tempered by the broader fundamental and valuation concerns. The stock’s recent price action includes a 1-day decline of -4.99% and a 1-week drop of -8.28%, reflecting volatility and investor caution. While technical indicators may offer short-term trading opportunities, they do not currently outweigh the risks posed by weak fundamentals and risky valuation. Investors should therefore approach the stock with prudence, considering technical signals as supplementary rather than primary decision drivers.

Comparative Performance and Market Context

Milestone Global Ltd’s performance has lagged behind broader market benchmarks such as the BSE500 index over the last three years, one year, and three months. This underperformance underscores the company’s struggles relative to its peers and the wider market. The microcap status of the company also adds an element of liquidity risk and heightened volatility, factors that investors must weigh carefully. The combination of weak long-term fundamentals, risky valuation, flat financial trends, and only mild technical support justifies the current 'Sell' rating, signalling that the stock may not be suitable for risk-averse investors or those seeking stable returns.

What This Means for Investors

For investors, the 'Sell' rating on Milestone Global Ltd serves as a cautionary signal. It suggests that the stock currently carries elevated risks due to weak operational performance, unfavourable valuation, and flat financial trends. While the mildly bullish technical grade may offer some short-term trading interest, it does not compensate for the underlying challenges. Investors should carefully assess their risk tolerance and portfolio objectives before considering exposure to this stock. Those holding the stock may want to evaluate exit strategies or reduce their positions, while prospective buyers should await clearer signs of fundamental improvement and financial stability.

Summary of Key Metrics as of 26 December 2025

To summarise, the latest data shows:

• Mojo Score: 33.0, corresponding to a 'Sell' grade


• Operating losses persist with PBDIT at Rs -0.12 crore and EPS at Rs -0.20


• Return on Equity averages 6.36%, indicating low profitability


• Stock returns over the past year stand at -26.76%


• Valuation remains risky compared to historical averages


• Technical indicators mildly bullish but insufficient to offset risks

These figures collectively underpin the current recommendation and provide a comprehensive view of the stock’s status in the market today.

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