Current Rating and Its Significance
The Strong Sell rating assigned to Oswal Green Tech Ltd indicates a cautious stance for investors, suggesting that the stock is expected to underperform relative to the broader market and its 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 03 February 2026, Oswal Green Tech Ltd's quality grade is considered below average. This is primarily due to its weak long-term fundamental strength. The company reports an average Return on Equity (ROE) of just 1.03%, signalling limited profitability relative to shareholder equity. Furthermore, operating profit has declined at an annualised rate of -34.68%, reflecting challenges in sustaining growth and operational efficiency over recent years. Such metrics suggest that the company struggles to generate consistent returns, which is a critical consideration for long-term investors seeking stable earnings growth.
Valuation Perspective
Despite the weak quality metrics, the valuation of Oswal Green Tech Ltd presents a mixed picture. The stock is currently classified as expensive based on its valuation grade, with a Price to Book (P/B) ratio of 0.3. This indicates that the stock is trading at a discount compared to its peers' historical valuations, which might appear attractive at first glance. However, the company's ROE of 0.5% and a Price/Earnings to Growth (PEG) ratio of 1.9 suggest that the market is pricing in subdued growth prospects. Over the past year, the stock has delivered a return of -39.16%, while profits have increased by 31.3%, highlighting a disconnect between earnings growth and market sentiment.
Financial Trend Analysis
The financial trend for Oswal Green Tech Ltd is rated positive, reflecting some improvement in recent profitability despite broader challenges. The company’s profits have risen by 31.3% over the last year, which is a notable development given the overall negative returns. However, this positive trend is overshadowed by the stock’s underperformance relative to benchmarks such as the BSE500 index. The stock has generated negative returns across multiple time frames: -38.81% over one year, -33.11% over six months, and -26.84% over three months, indicating persistent weakness in market performance.
Technical Outlook
From a technical standpoint, Oswal Green Tech Ltd is currently rated bearish. The stock’s price movements have shown a downward trajectory, with a 1-day gain of 2.24% and a modest 1-week increase of 0.25% failing to offset significant declines over longer periods. The 1-month return stands at -17.53%, reinforcing the negative momentum. This bearish technical grade suggests that short-term market sentiment remains weak, and investors should exercise caution when considering entry points.
Stock Returns and Market Performance
As of 03 February 2026, the stock’s returns paint a challenging picture for investors. The year-to-date return is -16.39%, and the stock has consistently underperformed the broader market indices over the past three years, one year, and three months. This sustained underperformance highlights the risks associated with holding the stock in the current market environment. Investors should weigh these returns carefully against their risk tolerance and investment horizon.
Summary for Investors
In summary, Oswal Green Tech Ltd’s Strong Sell rating reflects a combination of weak fundamental quality, expensive valuation relative to earnings quality, a cautiously positive financial trend, and a bearish technical outlook. For investors, this rating signals the need for prudence, as the stock currently exhibits characteristics that may lead to further downside risk. Those considering exposure to this microcap NBFC should closely monitor developments in the company’s operational performance and market conditions before making investment decisions.
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Company Profile and Market Context
Oswal Green Tech Ltd operates within the Non Banking Financial Company (NBFC) sector and is classified as a microcap stock. This classification often implies higher volatility and risk compared to larger, more established companies. The company’s market capitalisation remains modest, which can contribute to liquidity challenges and wider price swings. Investors should consider these factors alongside the fundamental and technical assessments when evaluating the stock’s suitability for their portfolios.
Mojo Score and Rating Evolution
The company’s Mojo Score currently stands at 23.0, reflecting the Strong Sell grade assigned by MarketsMOJO. This score represents a decline of 10 points from the previous rating of 'Sell' recorded before 08 September 2025. The score encapsulates the combined effect of the company’s financial health, valuation, and market performance, providing a quantitative measure to guide investor decisions. While the score has deteriorated, it offers a transparent snapshot of the stock’s risk profile as of today.
Investor Takeaway
For investors, the key takeaway is that Oswal Green Tech Ltd currently exhibits multiple warning signs across fundamental and technical dimensions. The Strong Sell rating advises caution, suggesting that the stock may continue to face headwinds in the near term. Those holding the stock should reassess their positions in light of the latest data, while prospective investors might consider alternative opportunities with stronger fundamentals and more favourable valuations.
Looking Ahead
Monitoring the company’s quarterly results and sector developments will be crucial for any change in outlook. Improvements in operating profit growth, return on equity, and technical momentum could eventually warrant a reassessment of the rating. Until such signals emerge, the current recommendation remains firmly on the side of caution.
Conclusion
Oswal Green Tech Ltd’s Strong Sell rating as of 03 February 2026 reflects a comprehensive evaluation of its quality, valuation, financial trend, and technical outlook. Investors should interpret this rating as a signal to carefully evaluate the risks before committing capital, given the stock’s recent performance and underlying fundamentals.
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