Sequent Scientific Ltd is Rated Hold by MarketsMOJO

Understanding the Current Rating

The 'Hold' rating assigned to Sequent Scientific Ltd indicates a neutral stance for investors, suggesting that the stock is fairly valued at present and may not offer significant upside or downside in the near term. This recommendation is based on 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 potential.

Quality Assessment

As of 30 December 2025, Sequent Scientific’s quality grade is considered below average. The company has exhibited weak long-term fundamental strength, with a compound annual growth rate (CAGR) of operating profits declining by 3.55% over the past five years. This trend highlights challenges in sustaining consistent profitability growth. Additionally, the firm’s ability to service debt remains limited, reflected in a high Debt to EBITDA ratio of 8.15 times, which signals elevated leverage and potential financial risk. The average Return on Equity (ROE) stands at a modest 3.90%, indicating relatively low profitability generated from shareholders’ funds. These factors collectively temper the quality outlook for the company, suggesting cautious consideration by investors.

Valuation Perspective

Currently, Sequent Scientific’s valuation is assessed as fair. The stock trades at an Enterprise Value to Capital Employed (EV/CE) ratio of 4.7, which is below the average historical valuations of its peers in the Pharmaceuticals & Biotechnology sector. This discount suggests that the market is pricing the stock conservatively relative to its capital base. Furthermore, the company’s Price/Earnings to Growth (PEG) ratio is approximately 1, indicating that the stock’s price is aligned with its earnings growth prospects. The Return on Capital Employed (ROCE) is reported at 10.2%, reinforcing a reasonable valuation given the company’s capital efficiency. Investors may find this valuation level attractive if they believe the company can improve its operational performance.

Financial Trend and Recent Performance

The financial trend for Sequent Scientific Ltd is very positive as of 30 December 2025. The company has demonstrated strong recent growth, with net profit increasing by 209.15% in the latest reported quarter. This marks the seventh consecutive quarter of positive results, underscoring a sustained improvement in profitability. Quarterly Profit Before Tax (PBT) excluding other income reached ₹26.71 crores, growing by 246.43%, while Profit After Tax (PAT) stood at ₹15.97 crores, up 162.7%. The half-yearly Return on Capital Employed (ROCE) peaked at 10.65%, reflecting enhanced capital efficiency. These figures indicate a robust turnaround in earnings momentum, which supports the current 'Hold' rating by signalling potential for further financial improvement.

Technical Outlook

From a technical perspective, the stock exhibits a mildly bullish trend. As of 30 December 2025, Sequent Scientific’s stock price has delivered a year-to-date (YTD) return of 18.95% and a one-year return of 21.08%. Over the past three months, the stock gained 12.22%, while the six-month return was 9.21%. These positive price movements suggest growing investor interest and momentum. The day change on the latest trading session was a modest +0.17%, indicating relative stability. The technical grade supports the notion that the stock is maintaining upward momentum, albeit with some caution warranted due to recent short-term volatility.

Promoter Confidence and Ownership

Another important factor influencing the current rating is the rising confidence of the company’s promoters. As of the latest quarter, promoters have increased their stake by 9.1%, now holding 61.43% of the company’s shares. This significant increase in promoter ownership is often interpreted as a positive signal, reflecting belief in the company’s future prospects and alignment with shareholder interests. Such insider confidence can provide additional reassurance to investors considering the stock.

Investor Takeaway

For investors, the 'Hold' rating on Sequent Scientific Ltd suggests a balanced approach. The company’s recent financial performance and rising promoter confidence provide encouraging signs, while the below-average quality metrics and moderate valuation caution against aggressive buying. The stock’s technical momentum is positive but not overwhelmingly strong, indicating that investors should monitor developments closely. Those holding the stock may consider maintaining their positions, while prospective buyers might wait for clearer signs of sustained improvement or a more attractive valuation.

Summary of Key Metrics as of 30 December 2025

• Mojo Score: 53.0 (Hold)


• Operating Profit CAGR (5 years): -3.55%


• Debt to EBITDA Ratio: 8.15 times


• Average ROE: 3.90%


• Net Profit Growth (latest quarter): 209.15%


• PBT (quarterly): ₹26.71 crores (+246.43%)


• PAT (quarterly): ₹15.97 crores (+162.7%)


• ROCE (half-yearly): 10.65%


• Enterprise Value to Capital Employed: 4.7


• PEG Ratio: 1


• Promoter Holding: 61.43% (+9.1% last quarter)


• Stock Returns: 1Y +21.08%, YTD +18.95%, 3M +12.22%

In conclusion, Sequent Scientific Ltd’s current 'Hold' rating reflects a nuanced view of the company’s prospects. While challenges remain in quality and leverage, recent financial gains and promoter confidence provide a foundation for cautious optimism. Investors should weigh these factors carefully in the context of their portfolio objectives and risk tolerance.

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