Current Rating and Its Significance
MarketsMOJO’s Strong Sell rating for Nagreeka Exports Ltd indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market and its sector peers. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment appeal and risk profile.
Quality Assessment
As of 06 February 2026, Nagreeka Exports Ltd’s quality grade is assessed as below average. This reflects weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of just 5.03%. Such a low ROCE suggests the company is generating limited returns on the capital invested, which is a concern for sustainable profitability. Additionally, the company’s net sales have grown at a sluggish annual rate of 1.49% over the past five years, indicating minimal top-line expansion. This slow growth trajectory undermines confidence in the company’s ability to scale operations effectively.
Valuation Perspective
Despite the weak quality metrics, the valuation grade for Nagreeka Exports Ltd is currently very attractive. This suggests that the stock is trading at a price level that may offer value relative to its earnings and asset base. For value-oriented investors, this could present an opportunity to acquire shares at a discount. However, attractive valuation alone does not offset the risks posed by the company’s deteriorating fundamentals and financial health.
Financial Trend and Profitability
The financial grade is negative, reflecting ongoing challenges in profitability and cash flow. The company has reported negative results for five consecutive quarters, signalling persistent operational difficulties. As of the latest nine months, the Profit After Tax (PAT) stands at ₹1.80 crore, having declined sharply by 64.84%. Net sales for the most recent six months total ₹213.31 crore, down by 30.84%, highlighting a significant contraction in revenue. Quarterly Profit Before Depreciation, Interest, and Taxes (PBDIT) is at a low ₹5.78 crore, underscoring margin pressures. Furthermore, the company’s debt servicing capability is strained, with a high Debt to EBITDA ratio of 8.22 times, indicating elevated leverage and financial risk.
Technical Analysis
The technical grade is bearish, reflecting negative price momentum and weak market sentiment. The stock’s recent price performance shows mixed short-term gains but overall underperformance over longer periods. Specifically, as of 06 February 2026, the stock has delivered a 1-day gain of 2.23%, a 1-week gain of 7.91%, and a 1-month gain of 3.85%. However, these short-term gains are overshadowed by a 3-month decline of 8.72% and a 1-year loss of 24.92%. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, indicating sustained weakness relative to the broader market.
Stock Returns and Market Context
Investors should note that while the stock has shown some positive returns year-to-date (+7.31%), the longer-term trend remains negative. The 1-year return of -24.92% is a clear indication of the challenges faced by Nagreeka Exports Ltd in regaining investor confidence and market share. This performance is consistent with the company’s deteriorating fundamentals and bearish technical outlook.
Summary of Key Metrics as of 06 February 2026
- Mojo Score: 17.0 (Strong Sell grade)
- Market Capitalisation: Microcap segment
- Return on Capital Employed (ROCE): 5.03%
- Net Sales Growth (5-year CAGR): 1.49%
- Debt to EBITDA Ratio: 8.22 times
- Profit After Tax (9 months): ₹1.80 crore, down 64.84%
- Net Sales (latest 6 months): ₹213.31 crore, down 30.84%
- PBDIT (quarterly): ₹5.78 crore
- Stock Returns: 1Y -24.92%, YTD +7.31%, 3M -8.72%
Just made the cut! This Mid Cap from the Heavy Electrical Equipment sector entered our elite Top 1% list recently. Discover it before the crowd catches on!
- - Top-rated across platform
- - Strong price momentum
- - Near-term growth potential
What This Rating Means for Investors
For investors, the Strong Sell rating on Nagreeka Exports Ltd serves as a cautionary signal. It suggests that the stock currently carries significant risks due to weak operational performance, financial stress, and negative market sentiment. While the valuation appears attractive, this is largely reflective of the market pricing in the company’s challenges rather than an endorsement of its prospects. Investors should carefully consider these factors and the company’s ability to improve its fundamentals before committing capital.
Sector and Market Position
Nagreeka Exports operates within the Garments & Apparels sector, a space that demands strong operational efficiency and consistent growth to maintain competitiveness. The company’s microcap status and below-average quality metrics place it at a disadvantage compared to larger, more financially robust peers. The persistent negative financial trends and bearish technical signals further highlight the need for caution.
Outlook and Considerations
Looking ahead, the company’s ability to reverse its declining sales and profitability will be critical. Reducing leverage and improving cash flow generation are essential to stabilise its financial position. Until such improvements materialise, the stock is likely to remain under pressure. Investors seeking exposure to the Garments & Apparels sector may prefer to consider alternatives with stronger fundamentals and more positive technical momentum.
Conclusion
In summary, Nagreeka Exports Ltd’s Strong Sell rating as of 01 December 2025 reflects a comprehensive assessment of its current challenges and risks. The latest data as of 06 February 2026 confirms ongoing weaknesses in quality, financial health, and market performance, despite an attractive valuation. This rating advises investors to approach the stock with caution and to prioritise risk management in their portfolio decisions.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
