Current Rating Overview
MarketsMOJO’s current rating of Sell for Super Sales India Ltd is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The Mojo Score stands at 46.0, placing the stock firmly in the Sell category, down from a previous Hold rating with a score of 51. This score adjustment was made on 07 Jan 2026, signalling a more cautious stance on the stock’s near-term prospects.
Quality Assessment
As of 19 January 2026, Super Sales India Ltd’s quality grade is assessed as average. The company’s management efficiency is notably weak, with a Return on Capital Employed (ROCE) averaging just 5.79%. This low ROCE indicates that the company generates limited profitability relative to the capital invested, which is a concern for investors seeking efficient capital utilisation. Furthermore, the company’s long-term growth trajectory is modest, with net sales growing at an annualised rate of 12.73% and operating profit increasing by 11.17% over the past five years. While these figures show some growth, they fall short of the robust expansion rates typically favoured by investors in the garments and apparels sector.
Valuation Perspective
Currently, the valuation grade for Super Sales India Ltd is very attractive. The stock’s microcap status and depressed price levels have made it appealing from a valuation standpoint. Despite the weak fundamentals, the market price reflects a significant discount, which could offer value to contrarian investors willing to tolerate near-term risks. However, attractive valuation alone does not offset the concerns raised by other parameters, particularly the company’s financial trend and technical outlook.
Financial Trend Analysis
The financial grade is positive, indicating that the company has maintained some favourable financial metrics. Yet, this positivity is tempered by the company’s recent stock returns, which have been disappointing. As of 19 January 2026, the stock has delivered a negative return of 38.71% over the past year and a 27.28% decline over six months. The year-to-date return also stands at -3.23%. These figures highlight the challenges the company faces in translating its financial fundamentals into shareholder value. The positive financial grade suggests some resilience in earnings or cash flow metrics, but this has not yet translated into price appreciation.
Technical Outlook
The technical grade is bearish, reflecting weak price momentum and negative market sentiment. The stock’s recent performance trends, including a 3-month decline of 8.02% and a 1-week drop of 1.66%, reinforce this bearish stance. The lack of upward price movement and the absence of strong technical signals suggest that the stock may continue to face downward pressure in the near term. Investors relying on technical analysis would likely view this as a warning sign to avoid initiating new positions.
Stock Returns and Market Performance
As of 19 January 2026, Super Sales India Ltd’s stock returns have been underwhelming. The one-day change is flat at 0.00%, but the longer-term returns paint a more challenging picture. The stock has declined by 38.71% over the past year, underperforming many peers in the garments and apparels sector. The six-month return of -27.28% and the three-month return of -8.02% further illustrate the stock’s struggles. These returns are consistent with the bearish technical grade and the cautious rating assigned by MarketsMOJO.
Implications for Investors
The current Sell rating indicates that MarketsMOJO advises investors to exercise caution with Super Sales India Ltd. The combination of average quality, very attractive valuation, positive financial trend, and bearish technicals suggests a complex risk-reward profile. While the valuation may tempt value investors, the weak management efficiency, modest growth, and negative price momentum imply that the stock may face continued headwinds. Investors should carefully weigh these factors and consider their risk tolerance before taking a position.
Sector and Market Context
Operating within the garments and apparels sector, Super Sales India Ltd faces competitive pressures and evolving consumer trends. The microcap status of the company adds an additional layer of volatility and liquidity risk. Compared to broader market indices and sector benchmarks, the stock’s performance has lagged significantly, underscoring the challenges it faces in regaining investor confidence.
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Summary
In summary, Super Sales India Ltd’s current Sell rating by MarketsMOJO reflects a cautious outlook grounded in a detailed analysis of quality, valuation, financial trends, and technical factors. While the stock’s valuation appears attractive, the company’s average quality metrics, bearish technical signals, and disappointing stock returns suggest that investors should approach with prudence. The rating update on 07 Jan 2026 signals a reassessment of the stock’s prospects, but the latest data as of 19 January 2026 confirms ongoing challenges. Investors seeking exposure to the garments and apparels sector may want to consider alternative opportunities with stronger fundamentals and more favourable technical profiles.
Looking Ahead
For investors monitoring Super Sales India Ltd, it will be important to watch for improvements in management efficiency, stronger growth in sales and profits, and a reversal in technical momentum before reconsidering a more positive stance. Until such signals emerge, the Sell rating remains a prudent guide for portfolio decisions.
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