Shri Venkatesh Refineries Ltd is Rated Sell

Current Rating and Its Significance

The 'Sell' rating assigned to Shri Venkatesh Refineries Ltd indicates a cautious stance for investors, suggesting that the stock may underperform relative to the broader market or its sector peers in the near term. This rating is derived from a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical indicators. It serves as a guide for investors to reassess their exposure to the stock, considering the risks and challenges currently facing the company.

Quality Assessment: Average Fundamentals Amidst Challenges

As of 02 January 2026, Shri Venkatesh Refineries Ltd holds an average quality grade. The company’s ability to generate consistent earnings and maintain operational efficiency appears moderate. One notable concern is its high Debt to EBITDA ratio of 3.61 times, signalling a relatively low capacity to service debt obligations comfortably. This elevated leverage heightens financial risk, especially in volatile market conditions.

Furthermore, the company’s long-term growth trajectory has been subdued. Over the past five years, net sales have declined at an annualised rate of -4.48%, while operating profit has contracted by -4.80% annually. These figures suggest structural challenges in expanding the business or improving profitability sustainably. The flat financial results reported in June 2024 further underscore the lack of momentum in operational performance.

Valuation: Risky Position Relative to Historical Norms

The valuation grade for Shri Venkatesh Refineries Ltd is currently classified as risky. The stock trades at levels that are elevated compared to its historical averages, which may not be justified given the company’s financial performance and growth outlook. Despite this, the stock has delivered a one-year return of +30.35% as of 02 January 2026, reflecting some market optimism or speculative interest.

However, the company’s Price/Earnings to Growth (PEG) ratio stands at 1.7, indicating that earnings growth is not sufficiently robust to support the current valuation comfortably. This disconnect between price appreciation and fundamental growth raises concerns about potential overvaluation and the risk of price corrections.

Financial Trend: Flat and Concerning Growth Metrics

The financial trend for Shri Venkatesh Refineries Ltd is flat, signalling stagnation in key performance indicators. The lack of recent results over the last six months adds to the uncertainty, making it difficult for investors to gauge the company’s current operational health. The absence of fresh data may reflect delays or challenges in reporting, which can be a red flag for transparency and governance.

Moreover, domestic mutual funds hold no stake in the company, which is notable given their capacity for thorough research and due diligence. This absence of institutional interest could imply a lack of confidence in the company’s prospects or valuation at current levels.

Technicals: Mildly Bullish but Insufficient to Offset Risks

From a technical perspective, the stock exhibits mildly bullish signals. Short-term price movements show some positive momentum, with a 6-month return of +39.71% and a modest 3-month gain of +1.01%. However, these technical indicators are not strong enough to outweigh the fundamental and valuation concerns highlighted above.

Investors should be cautious in relying solely on technical trends, especially when the underlying financial health and growth prospects are uncertain. The stock’s performance over the past year, including a slight year-to-date decline of -1.79%, reflects mixed market sentiment.

Investor Takeaway: What the 'Sell' Rating Means

For investors, the 'Sell' rating on Shri Venkatesh Refineries Ltd suggests prudence in holding or acquiring this stock at present. The combination of average quality, risky valuation, flat financial trends, and only mildly bullish technicals points to a stock that may face headwinds in delivering consistent returns going forward.

While the stock has shown some positive returns over the past year, these gains appear disconnected from the company’s underlying fundamentals and growth prospects. The high leverage and lack of institutional backing further compound the risks.

Investors should consider these factors carefully and may wish to explore alternative opportunities with stronger fundamentals and more favourable valuations. Continuous monitoring of the company’s financial disclosures and market developments will be essential for those maintaining exposure.

Company Profile and Market Context

Shri Venkatesh Refineries Ltd operates in the edible oil sector and is classified as a microcap company. Its relatively small market capitalisation and limited institutional interest contribute to higher volatility and risk. The sector itself faces competitive pressures and margin challenges, which are reflected in the company’s subdued growth and profitability metrics.

Given these dynamics, the current 'Sell' rating by MarketsMOJO aligns with a cautious investment approach, signalling that the stock may not be well positioned to deliver superior returns in the near term.

Summary of Key Metrics as of 02 January 2026

• Mojo Score: 47.0 (Sell Grade)


• Debt to EBITDA Ratio: 3.61 times (High leverage)


• Net Sales Growth (5 years): -4.48% annualised


• Operating Profit Growth (5 years): -4.80% annualised


• 1-Year Stock Return: +30.35%


• PEG Ratio: 1.7 (Indicating valuation risk)


• Domestic Mutual Fund Holding: 0%

These figures collectively illustrate the challenges and risks that underpin the current rating and should be carefully weighed by investors.

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