Understanding the Current Rating
MarketsMOJO’s Strong Sell rating for PMC Fincorp Ltd indicates a cautious stance towards the stock, signalling significant concerns across multiple evaluation parameters. This rating was assigned following a comprehensive review of the company’s fundamentals, valuation, financial trends, and technical indicators. The downgrade from Sell to Strong Sell on 29 May 2025 reflected a notable deterioration in the company’s outlook, with the Mojo Score dropping from 37 to 23, underscoring heightened risks for investors.
Here’s How PMC Fincorp Looks Today
As of 20 February 2026, PMC Fincorp Ltd remains a microcap entity within the Non Banking Financial Company (NBFC) sector. The company’s current Mojo Grade is Strong Sell, supported by a low Mojo Score of 23. This score reflects a combination of weak fundamentals, challenging financial trends, and subdued technical signals, despite an attractive valuation.
Quality Assessment
The quality grade for PMC Fincorp is below average, signalling concerns about the company’s operational and earnings stability. The latest data shows a weak long-term fundamental strength, with an average Return on Equity (ROE) of just 6.05%. This level of ROE is modest for the NBFC sector, where investors typically seek higher returns to compensate for sector-specific risks. Furthermore, the company has reported negative results for four consecutive quarters, highlighting ongoing challenges in profitability and operational efficiency.
Valuation Perspective
Despite the weak fundamentals, PMC Fincorp’s valuation grade is very attractive. This suggests that the stock is trading at a price level that could appeal to value-oriented investors seeking potential turnaround opportunities. However, the attractive valuation alone does not offset the risks posed by deteriorating financial performance and negative earnings trends. Investors should weigh the valuation benefits against the broader risk profile before considering exposure.
Financial Trend Analysis
The financial grade is negative, reflecting a downward trajectory in key profitability metrics. As of 20 February 2026, the company’s Profit After Tax (PAT) for the latest quarter stood at ₹0.52 crore, representing a sharp decline of 80.5% compared to the average of the previous four quarters. Additionally, Profit Before Depreciation, Interest, and Taxes (PBDIT) has reached a low of ₹1.92 crore, while Profit Before Tax excluding Other Income (PBT less OI) is at ₹1.01 crore, also at its lowest level. These figures indicate sustained pressure on earnings and operational cash flows, which have contributed to the negative financial trend assessment.
Technical Outlook
The technical grade is mildly bearish, reflecting subdued market sentiment and price action. The stock’s recent price movements show a mixed pattern, with a 1-day change of 0.00%, a 1-week decline of 1.69%, and a 1-month gain of 2.34%. However, over longer periods, the stock has underperformed significantly, with a 3-month decline of 3.31%, a 6-month drop of 17.45%, and a year-to-date loss of 2.23%. Most notably, the stock has delivered a negative return of 34.94% over the past year, underperforming the BSE500 benchmark consistently over the last three annual periods. This persistent underperformance reinforces the bearish technical outlook.
Investment Implications
For investors, the Strong Sell rating on PMC Fincorp Ltd serves as a cautionary signal. The combination of below-average quality, negative financial trends, and bearish technical indicators outweighs the appeal of the stock’s attractive valuation. The company’s ongoing struggles with profitability and consistent underperformance against benchmarks suggest that the stock carries elevated risk in the current market environment. Investors should carefully consider these factors and their risk tolerance before initiating or maintaining positions in PMC Fincorp.
Sector and Market Context
Operating within the NBFC sector, PMC Fincorp faces sector-specific challenges including regulatory pressures, credit risk concerns, and competitive dynamics. The microcap status of the company adds an additional layer of volatility and liquidity risk. Compared to peers and broader market indices, PMC Fincorp’s performance metrics and financial health remain subdued, which is reflected in the current Strong Sell rating.
Our current monthly pick, this Mid Cap from Automobile Two & Three Wheelers, survived rigorous evaluation against dozens of contenders. See why experts are backing this one!
- - Rigorous evaluation cleared
- - Expert-backed selection
- - Mid Cap conviction pick
Summary of Key Metrics as of 20 February 2026
PMC Fincorp’s financial and market data as of today reinforce the rationale behind the Strong Sell rating. The company’s microcap market capitalisation, combined with weak profitability and negative earnings trends, presents a challenging investment case. The stock’s underperformance relative to the BSE500 benchmark over the past three years and nearly 35% loss in the last year highlight the risks faced by shareholders. While valuation remains attractive, it is insufficient to counterbalance the broader concerns.
Conclusion
PMC Fincorp Ltd’s current Strong Sell rating by MarketsMOJO reflects a comprehensive assessment of its quality, valuation, financial trends, and technical outlook as of 20 February 2026. Investors should interpret this rating as a signal to exercise caution, given the company’s ongoing operational challenges and market underperformance. Those considering exposure to this stock should conduct thorough due diligence and consider alternative investment opportunities with stronger fundamentals and more favourable risk-return profiles.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
