Rating Overview and Context
On 01 December 2025, MarketsMOJO revised the rating for Power & Instrumentation (Gujarat) Ltd from Buy to Hold, reflecting a change in the company’s overall Mojo Score which dropped by 18 points from 71 to 53. This adjustment signals a more cautious stance on the stock, suggesting that while the company retains certain strengths, there are factors that temper enthusiasm for immediate buying opportunities.
It is important to note that this rating update is based on a comprehensive evaluation of multiple parameters, including quality, valuation, financial trends, and technical indicators. The analysis below focuses on how the stock stands today, with all data current as of 28 January 2026.
Here’s How the Stock Looks Today
As of 28 January 2026, Power & Instrumentation (Gujarat) Ltd remains a microcap player in the Other Electrical Equipment sector. The company’s financial metrics continue to show a mixed picture, balancing strong operational growth against recent stock price underperformance.
Quality Assessment
The company holds a good quality grade, supported by robust long-term growth in net sales and operating profit. Net sales have expanded at an annualised rate of 40.48%, while operating profit has grown even faster at 50.17%. This growth is underpinned by consistent positive quarterly results, with the latest quarter reporting net sales of ₹70.27 crores, a 27.93% increase year-on-year. Operating profit before depreciation and interest (PBDIT) reached a high of ₹6.61 crores, and profit before tax excluding other income (PBT less OI) grew by 30.14%.
Valuation Perspective
Currently, the company’s valuation is considered very attractive. With a return on capital employed (ROCE) of 11.2%, Power & Instrumentation trades at an enterprise value to capital employed ratio of just 1.2. This indicates the stock is priced at a discount relative to its peers’ historical valuations, offering potential value for investors willing to look beyond short-term price movements. However, the price-to-earnings-to-growth (PEG) ratio stands at a high 13.5, reflecting the market’s cautious stance given the recent share price decline.
Financial Trend
The financial trend remains positive, with the company delivering seven consecutive quarters of profit growth. Despite this, the stock’s market performance has been disappointing. Over the past year, the stock has generated a return of -68.98%, significantly underperforming the broader BSE500 index across multiple time frames including one year, three years, and three months. This divergence between strong fundamentals and weak share price performance is a key consideration for investors evaluating the stock’s risk-reward profile.
Technical Analysis
From a technical standpoint, the stock is currently bearish. Recent price movements show a downward trend, with the stock falling 0.71% on the latest trading day and declining 21.00% over the past month. The negative momentum is reflected in the six-month return of -20.61% and a year-to-date loss of 22.91%. This technical weakness suggests caution for short-term traders, although long-term investors may find the valuation compelling given the company’s operational strengths.
Shareholding and Market Position
Majority shareholding remains with non-institutional investors, which can sometimes contribute to higher volatility in microcap stocks. The company’s market capitalisation remains small, which may limit liquidity but also offers potential for significant upside if operational improvements translate into renewed investor interest.
From struggle to strength! This Small Cap from Textile - Machinery is showing early turnaround signals that look promising. Position yourself now for explosive growth potential ahead!
- - Early turnaround signals
- - Explosive growth potential
- - Textile - Machinery recovery play
Position for Explosive Growth →
What the Hold Rating Means for Investors
A Hold rating from MarketsMOJO indicates that investors should maintain their current positions rather than initiate new purchases or sell existing holdings. This rating reflects a balanced view: the company’s strong operational growth and attractive valuation are offset by recent share price weakness and bearish technical signals. Investors are advised to monitor the stock closely for signs of a technical turnaround or further fundamental developments that could alter the risk-reward profile.
Investment Considerations
For investors, the key takeaway is that Power & Instrumentation (Gujarat) Ltd presents a nuanced opportunity. The company’s solid growth in sales and profits, combined with a valuation discount, suggests underlying strength. However, the significant share price decline and bearish technical outlook warrant caution. Those with a longer investment horizon and tolerance for volatility may find value in the stock, while more risk-averse investors might prefer to wait for clearer signs of price recovery.
Summary
In summary, Power & Instrumentation (Gujarat) Ltd’s current Hold rating is justified by a combination of good quality fundamentals, very attractive valuation, positive financial trends, and bearish technicals. The rating update on 01 December 2025 reflects these factors, but the detailed analysis here is based on the latest data as of 28 January 2026. Investors should weigh the company’s operational strengths against recent market performance when making portfolio decisions.
Stock Returns Snapshot as of 28 January 2026
The stock’s recent returns highlight the challenges faced by investors: a 1-day decline of 0.71%, a 1-week loss of 2.04%, and a 1-month drop of 21.00%. Over three months, the stock has fallen 35.98%, and the six-month return stands at -20.61%. Year-to-date, the stock is down 22.91%, while the one-year return is a steep -68.98%. These figures underscore the importance of considering both fundamental and technical factors in evaluating the stock’s outlook.
Final Thoughts
Power & Instrumentation (Gujarat) Ltd remains a company with promising operational metrics but faces headwinds in market sentiment and technical momentum. The Hold rating encourages investors to stay informed and cautious, recognising the potential for recovery alongside the risks inherent in the current market environment.
Unlock special upgrade rates for a limited period. Start Saving Now →
