Understanding the Current Rating
The Strong Sell rating assigned to Riddhi Siddhi Gluco Biols Ltd indicates a cautious stance for investors, signalling significant concerns about the company’s financial health, valuation, and market performance. 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 and helps investors understand the risks involved in holding or acquiring this stock at present.
Quality Assessment
As of 03 January 2026, the company’s quality grade remains below average. Over the past five years, Riddhi Siddhi Gluco Biols Ltd has experienced a negative compound annual growth rate (CAGR) of -14.03% in net sales, reflecting a persistent decline in core business operations. The firm’s ability to service its debt is notably weak, with an average EBIT to interest ratio of -1.18, indicating that earnings before interest and tax are insufficient to cover interest expenses. Furthermore, the company has reported losses consistently, resulting in a negative return on capital employed (ROCE). These factors collectively highlight fundamental weaknesses in the company’s operational and financial quality.
Valuation Considerations
The valuation grade for Riddhi Siddhi Gluco Biols Ltd is classified as risky. The stock currently trades at levels that are unfavourable compared to its historical averages, suggesting that the market perceives elevated risk or diminished growth prospects. Negative EBITDA figures further compound valuation concerns, as profitability remains elusive. Investors should be wary of the stock’s pricing relative to its earnings potential and financial stability, which currently do not justify a more favourable rating.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial trend for Riddhi Siddhi Gluco Biols Ltd is negative, reflecting deteriorating performance in recent quarters. The company has declared losses for three consecutive quarters, with the latest six-month profit after tax (PAT) standing at ₹24.29 crores, which has declined by 40.98%. Quarterly net sales have fallen sharply by 34.36% to ₹32.10 crores, while profit before tax excluding other income (PBT less OI) has plunged by 225% to a loss of ₹4.05 crores. These figures underscore a troubling downward trajectory in both revenue generation and profitability.
Technical Outlook
From a technical perspective, the stock is rated bearish. Recent price movements show a mixed short-term performance with a 1-day gain of 7.36%, but this is overshadowed by declines over longer periods: -1.08% over one week, -4.55% over one month, and a significant -18.64% over three months. The stock’s one-year return is deeply negative at -30.46%, underperforming benchmarks such as the BSE500 index over the last one, three, and five years. This bearish technical grade reflects weak investor sentiment and a lack of upward momentum in the stock price.
Stock Returns and Market Performance
As of 03 January 2026, Riddhi Siddhi Gluco Biols Ltd has delivered a one-year return of -30.46%, indicating substantial erosion in shareholder value. The stock’s year-to-date return is a modest +7.58%, but this short-term gain does little to offset the longer-term losses. Over six months, the stock has declined by 20.69%, and over three months by 18.64%, signalling persistent weakness. This performance contrasts sharply with broader market indices, highlighting the stock’s underperformance within its sector and the wider market.
Implications for Investors
The Strong Sell rating suggests that investors should exercise caution with Riddhi Siddhi Gluco Biols Ltd. The combination of weak fundamentals, risky valuation, negative financial trends, and bearish technical signals points to elevated risk and limited near-term upside. Investors seeking capital preservation or growth may find more attractive opportunities elsewhere, given the company’s current challenges. This rating serves as a warning to carefully assess the risks before considering any investment in this stock.
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Summary
Riddhi Siddhi Gluco Biols Ltd’s current Strong Sell rating by MarketsMOJO reflects a comprehensive assessment of its financial and market position as of 03 January 2026. Despite a brief positive movement in the stock price, the company’s fundamental weaknesses, risky valuation, negative financial trends, and bearish technical outlook collectively advise investors to approach this stock with caution. The rating underscores the importance of thorough due diligence and risk management when considering exposure to this microcap within the Trading & Distributors sector.
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