Supra Pacific Management Consultancy Ltd is Rated Sell

Understanding the Current Rating

The Sell rating assigned to Supra Pacific Management Consultancy Ltd indicates a cautious stance for investors. It suggests that the stock may underperform relative to the broader market or its sector peers 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 stock’s investment potential.

Quality Assessment

As of 29 January 2026, the company’s quality grade is classified as below average. This reflects concerns regarding its fundamental strength and operational efficiency. Notably, the average Return on Equity (ROE) stands at a modest 2.59%, which is relatively weak compared to industry standards for Non-Banking Financial Companies (NBFCs). Such a low ROE suggests limited profitability and challenges in generating shareholder value over the long term. Investors typically seek companies with robust and consistent returns on equity, which Supra Pacific currently lacks.

Valuation Perspective

Contrasting with its quality concerns, Supra Pacific’s valuation grade is very attractive. This implies that the stock is trading at a price level that may offer value relative to its earnings, assets, or cash flows. For value-oriented investors, this presents a potential opportunity to acquire shares at a discount. However, attractive valuation alone does not guarantee positive returns, especially if underlying business fundamentals remain weak. The current market capitalisation categorises the company as a microcap, which often entails higher volatility and risk.

Financial Trend Analysis

The financial grade for Supra Pacific is outstanding, signalling strong recent financial performance or improvement in key metrics such as revenue growth, profitability, or cash flow generation. This positive trend can be encouraging for investors looking for turnaround stories or companies demonstrating resilience. Despite this, the overall quality concerns temper enthusiasm, as sustained financial health requires consistent operational excellence and strategic execution.

Technical Outlook

From a technical standpoint, the stock is rated mildly bearish. This suggests that recent price movements and chart patterns indicate some downward pressure or lack of strong momentum. As of 29 January 2026, the stock has delivered mixed returns: a 1-day gain of 2.54%, a 1-week gain of 2.02%, but a 1-month decline of 3.82%. Over longer periods, the stock shows modest appreciation with a 3-month gain of 3.88%, 6-month gain of 7.05%, and a 1-year return of 5.07%. These figures reflect a somewhat volatile trading pattern, which may caution risk-averse investors.

Stock Performance and Market Context

Currently, Supra Pacific operates within the Non-Banking Financial Company (NBFC) sector, a segment known for its sensitivity to credit cycles and regulatory changes. The company’s microcap status means it is less liquid and potentially more susceptible to market swings. The Mojo Score, a composite indicator used by MarketsMOJO to summarise stock attractiveness, stands at 48.0, reinforcing the Sell rating. This score decreased by 3 points from 51 to 48 on 08 Dec 2025, coinciding with the rating update.

Investors should note that while the valuation appears compelling, the combination of below-average quality and a mildly bearish technical outlook suggests caution. The outstanding financial trend offers some optimism, but it may not be sufficient to offset the risks associated with the company’s fundamental weaknesses and market positioning.

What This Rating Means for Investors

For investors, the Sell rating on Supra Pacific Management Consultancy Ltd serves as a signal to exercise caution. It suggests that the stock may not be an ideal candidate for accumulation or long-term holding at present. The combination of weak fundamental quality and a mildly bearish technical outlook outweighs the appeal of its attractive valuation and strong recent financial trends.

Investors should carefully consider their risk tolerance and investment horizon before engaging with this stock. Those seeking stable returns and robust fundamentals might prefer to look elsewhere, while value investors with a higher risk appetite could monitor the stock for potential turnaround signs. It is also advisable to keep abreast of sector developments and company-specific news that could impact future performance.

Summary of Key Metrics as of 29 January 2026

- Mojo Score: 48.0 (Sell grade)

- Quality Grade: Below Average

- Valuation Grade: Very Attractive

- Financial Grade: Outstanding

- Technical Grade: Mildly Bearish

- 1-Year Return: +5.07%

- Market Capitalisation: Microcap

- Average ROE: 2.59%

In conclusion, while Supra Pacific Management Consultancy Ltd offers some valuation appeal and has demonstrated positive financial trends, its overall quality and technical outlook justify the current Sell rating. Investors should weigh these factors carefully and consider their portfolio strategy accordingly.

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