Understanding the Current Rating
The Strong Sell rating assigned to Nagreeka Exports Ltd indicates a cautious stance for investors, signalling significant concerns across multiple evaluation parameters. This rating is derived from a comprehensive assessment of the company’s quality, valuation, financial trend, and technical outlook. While the rating was revised on 01 Dec 2025, it is essential to consider the latest data as of 24 December 2025 to understand the stock’s present condition and what it means for potential and existing investors.
Quality Assessment: Below Average Fundamentals
As of 24 December 2025, Nagreeka Exports Ltd exhibits below average quality metrics. The company’s long-term fundamental strength remains weak, with an average Return on Capital Employed (ROCE) of just 5.03%. This figure is modest, especially when compared to industry peers in the Garments & Apparels sector, where stronger capital efficiency is often expected. Furthermore, the company’s net sales have grown at a sluggish annual rate of 1.49% over the past five years, indicating limited top-line expansion and challenges in scaling operations effectively.
Additionally, the company’s ability to service debt is a concern, with a high Debt to EBITDA ratio of 8.22 times. This elevated leverage ratio suggests financial strain and potential difficulties in meeting interest and principal obligations, which can impact operational flexibility and investor confidence.
Valuation: Very Attractive but Reflective of Risks
Despite the weak fundamentals, Nagreeka Exports Ltd’s valuation is currently very attractive. This suggests that the stock price has adjusted downward to levels that may appeal to value-oriented investors seeking bargains. However, the low valuation is a reflection of the underlying risks and deteriorating financial health rather than an outright bargain. Investors should weigh the valuation against the company’s operational challenges and negative financial trends before considering any position.
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- - Fundamental Analysis
- - Technical Signals
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Financial Trend: Negative and Declining Performance
The latest data shows Nagreeka Exports Ltd has experienced a negative financial trend. The company has reported losses for five consecutive quarters, signalling persistent operational difficulties. For the nine months ended 24 December 2025, the Profit After Tax (PAT) stood at ₹1.80 crores, reflecting a steep decline of 64.84% compared to previous periods. Net sales for the same period were ₹328.84 crores, down by 26.51%, underscoring shrinking revenue streams.
Quarterly earnings before depreciation, interest, and taxes (PBDIT) have also hit a low of ₹5.78 crores, highlighting margin pressures and cost challenges. These negative trends have contributed to the stock’s underperformance relative to broader market indices such as the BSE500, where Nagreeka Exports Ltd has lagged over the past three years, one year, and three months.
Technical Outlook: Bearish Momentum
From a technical perspective, the stock is currently graded as bearish. Despite a modest 1-day gain of 1.04% and a 1-week increase of 2.75%, the medium to long-term price trajectory remains weak. Over the past three months, the stock has declined by 20.75%, and the year-to-date return is negative at -24.36%. The one-year return stands at -24.94%, signalling sustained downward pressure on the share price.
This bearish technical grade reflects investor sentiment and market dynamics that are not favourable for the stock in the near term. The combination of weak fundamentals and negative financial trends has likely contributed to this technical weakness.
Implications for Investors
The Strong Sell rating from MarketsMOJO serves as a cautionary signal for investors considering Nagreeka Exports Ltd. It suggests that the stock currently carries significant risks, including poor financial health, declining profitability, and negative market momentum. While the valuation appears attractive, it is important to recognise that this is largely due to the company’s deteriorating fundamentals rather than an undervaluation based on growth prospects.
Investors should carefully analyse their risk tolerance and investment horizon before engaging with this stock. Those with a preference for stable, quality companies may find better opportunities elsewhere, while value investors might consider waiting for signs of financial recovery and improved operational performance before entering a position.
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Summary
In summary, Nagreeka Exports Ltd’s current Strong Sell rating reflects a comprehensive evaluation of its below average quality, very attractive valuation tempered by significant risks, negative financial trends, and bearish technical indicators. The rating was updated on 01 Dec 2025, but all data and analysis presented here are current as of 24 December 2025, providing investors with the latest insights into the company’s position.
Given the ongoing challenges, investors should approach this stock with caution and consider the broader market context and their individual investment strategies before making decisions.
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