STEL Holdings Ltd is Rated Hold by MarketsMOJO

Understanding the Current Rating

The 'Hold' rating assigned to STEL Holdings Ltd indicates a balanced outlook for investors. It suggests that while the stock may not be an immediate buy, it is not recommended for sale either. This rating reflects a moderate confidence in the company’s prospects, signalling that investors should maintain their current positions and monitor developments closely.

The rating was revised on 11 Nov 2025, moving from a 'Sell' to a 'Hold' as the company demonstrated improvements across several key parameters. The Mojo Score, a composite measure of quality, valuation, financial trend, and technicals, increased by 17 points to 64, reinforcing the more neutral stance.

Here’s How STEL Holdings Ltd Looks Today

As of 25 December 2025, STEL Holdings Ltd operates as a microcap entity within the Non Banking Financial Company (NBFC) sector. The company’s current Mojo Grade is 'Hold', reflecting a balanced risk-reward profile for investors.

Stock price movements over recent periods show mixed but generally positive momentum. The stock declined by 2.49% on the latest trading day, with a weekly loss of 7.03%. However, monthly and quarterly returns are positive at +6.84% and +10.06% respectively, while the six-month and year-to-date returns stand at +26.64% and +28.18%. Over the past year, the stock has delivered a commendable 20.24% return, outperforming the BSE500 index consistently over the last three years.

Quality Assessment

STEL Holdings Ltd’s quality grade is assessed as average. The company maintains a low debt-to-equity ratio, effectively zero, which is a positive indicator of financial stability and low leverage risk. This conservative capital structure reduces vulnerability to interest rate fluctuations and economic downturns.

However, the company’s long-term growth has been modest. Operating profit has grown at an annualised rate of 15.99% over the past five years, which, while positive, is not exceptional within the NBFC sector. Investors should note that steady but unspectacular growth characterises the company’s earnings trajectory.

Valuation Considerations

Valuation remains a key factor in the 'Hold' rating. Currently, STEL Holdings Ltd is considered very expensive relative to its fundamentals. The stock trades at a price-to-book value of 0.5, which is a premium compared to its peers’ historical averages. Despite this, the company’s return on equity (ROE) is low at 0.9%, indicating limited profitability relative to shareholder equity.

The price-earnings-to-growth (PEG) ratio stands at 7.5, signalling that the stock price is high relative to its earnings growth rate. This elevated valuation suggests that investors are pricing in significant future growth or other positive developments, which may not yet be fully realised in the company’s financials.

Financial Trend and Recent Performance

The financial trend for STEL Holdings Ltd is positive. The latest quarterly results for September 2025 highlight encouraging operational metrics. Operating cash flow for the year reached a peak of ₹43.18 crores, while net sales for the quarter grew by 71.0% compared to the previous four-quarter average, reaching ₹9.07 crores. Profit before tax excluding other income also rose by 66.4% to ₹8.87 crores.

These figures demonstrate improving operational efficiency and revenue growth, which underpin the positive financial grade assigned to the company. However, investors should weigh these gains against the company’s valuation and quality metrics to form a balanced view.

Technical Outlook

From a technical perspective, STEL Holdings Ltd is currently rated bullish. This suggests that market momentum and price action indicators are favourable, supporting the stock’s recent upward trend. The bullish technical grade complements the positive financial trend, providing additional confidence for investors considering maintaining or initiating positions.

Promoter Confidence and Shareholding

Promoter activity is a noteworthy aspect of the company’s outlook. Promoters have increased their stake by 1.36% over the previous quarter and currently hold 70.83% of the company’s shares. This rising promoter confidence is often interpreted as a positive signal, reflecting belief in the company’s future prospects and alignment with shareholder interests.

What the Hold Rating Means for Investors

For investors, the 'Hold' rating on STEL Holdings Ltd suggests a cautious but optimistic stance. The company exhibits solid financial trends and technical momentum, yet its valuation remains stretched relative to earnings and book value. This combination implies that while the stock is not undervalued, it is not overvalued enough to warrant a sell recommendation.

Investors currently holding the stock may consider maintaining their positions to benefit from ongoing operational improvements and positive market sentiment. Prospective investors should weigh the premium valuation against the company’s growth prospects and sector dynamics before committing capital.

Overall, STEL Holdings Ltd presents a balanced investment case with moderate risk and reward potential, consistent with the 'Hold' rating assigned by MarketsMOJO.

Summary of Key Metrics as of 25 December 2025

• Mojo Score: 64.0 (Hold Grade)


• Market Capitalisation: Microcap


• Debt to Equity Ratio: 0 (Low leverage)


• Operating Profit Growth (5-year CAGR): 15.99%


• Return on Equity (ROE): 0.9%


• Price to Book Value: 0.5 (Premium valuation)


• PEG Ratio: 7.5 (High relative valuation)


• Stock Returns (1 Year): +20.24%


• Promoter Holding: 70.83% (Increased by 1.36% last quarter)

Investors should continue to monitor quarterly results and market conditions to reassess the stock’s outlook in the context of evolving fundamentals and valuation metrics.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today