Current Rating and Its Significance
MarketsMOJO currently assigns Share India Securities Ltd a 'Hold' rating, indicating a neutral stance on the stock. This rating suggests that investors should neither aggressively buy nor sell the stock at present but rather monitor its developments closely. The 'Hold' status reflects a balance of strengths and weaknesses across key evaluation parameters, signalling that while the stock has potential, certain risks and challenges remain.
How the Stock Looks Today: Quality Assessment
As of 05 January 2026, Share India Securities Ltd exhibits an average quality grade. The company maintains a strong long-term fundamental strength, demonstrated by an average Return on Equity (ROE) of 29.41%. This level of ROE indicates that the company has historically generated solid returns on shareholder equity, a positive sign for investors seeking sustainable profitability. Additionally, the company has shown healthy long-term growth, with net sales increasing at an annual rate of 32.20% and operating profit growing at 39.62%. These figures underscore the company’s ability to expand its business and improve operational efficiency over time.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Valuation: Attractive Pricing Amidst Challenges
Currently, the company's financial metrics indicate a very attractive valuation. The stock trades at a Price to Book Value (P/BV) of approximately 1.4, which is considered a discount relative to its peers' average historical valuations. This valuation suggests that the market is pricing the stock conservatively, potentially offering value to investors willing to look beyond short-term setbacks. The ROE of 11.1% in the latest period, while lower than historical averages, still supports the notion that the company retains intrinsic value. However, investors should be mindful that the stock has delivered a negative return of -45.69% over the past year, underperforming the broader market, which has generated a 5.35% return over the same period.
Financial Trend: Recent Performance Concerns
The financial trend for Share India Securities Ltd presents a mixed picture. The company has reported negative results for the last four consecutive quarters, signalling operational challenges. Specifically, Profit Before Tax excluding Other Income (PBT LESS OI) for the latest quarter stood at ₹121.19 crores, reflecting a decline of -24.65%. Net sales over the latest six months amounted to ₹682.37 crores, down by -21.29%, while Profit After Tax (PAT) for the same period decreased by -21.95% to ₹177.09 crores. These figures highlight a contraction in profitability and sales, which weigh on investor sentiment and justify caution.
Technicals: Mildly Bullish Signals
From a technical perspective, Share India Securities Ltd is currently graded as mildly bullish. This suggests that while the stock has shown some positive momentum in recent months—evidenced by a 3-month return of +17.64% and a 1-month gain of +2.51%—the overall trend remains fragile. The stock’s 6-month return of -9.87% and year-to-date decline of -1.89% indicate volatility and uncertainty. Additionally, the stock’s 1-day and 1-week changes of -0.67% and -1.95% respectively, reflect short-term pressure. Investors should consider these technical signals alongside fundamental factors when making decisions.
Additional Considerations: Promoter Share Pledging and Market Context
One notable risk factor is the high level of promoter share pledging, with 52.16% of promoter shares currently pledged. In declining markets, this can exert additional downward pressure on the stock price as pledged shares may be sold to meet margin calls. This factor adds to the cautionary tone surrounding the stock despite its attractive valuation and quality metrics.
Moreover, the stock has underperformed the broader market significantly over the past year. While the BSE500 index has delivered a positive return of 5.35%, Share India Securities Ltd has generated a negative return of -45.89%. This divergence emphasises the challenges the company faces in regaining investor confidence and market share.
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What This Rating Means for Investors
The 'Hold' rating on Share India Securities Ltd reflects a balanced view that acknowledges both the company’s strengths and its current challenges. For investors, this means that while the stock is not an outright buy, it is also not a sell candidate at this stage. The attractive valuation and solid long-term fundamentals provide a foundation for potential recovery, but the recent negative financial trends and high promoter share pledging warrant caution.
Investors should consider monitoring the company’s quarterly results closely, particularly looking for signs of stabilisation or improvement in profitability and sales. Additionally, tracking technical momentum and market sentiment will be important to gauge the stock’s near-term direction. Those with a higher risk tolerance may view the current price discount as an opportunity to accumulate selectively, while more conservative investors might prefer to wait for clearer signs of financial turnaround.
Summary
In summary, Share India Securities Ltd’s 'Hold' rating as of 11 Dec 2025, combined with the latest data as of 05 January 2026, presents a nuanced investment case. The company’s average quality, very attractive valuation, negative financial trend, and mildly bullish technicals collectively justify a cautious stance. Investors should weigh these factors carefully in the context of their portfolio objectives and risk appetite.
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