Current Rating Overview
MarketsMOJO currently assigns Suraj Products Ltd. a 'Sell' rating, reflecting a cautious stance on the stock given its recent performance and outlook. This rating was established on 13 Nov 2025, when the Mojo Score declined from 51 to 33, signalling a significant deterioration in the stock’s overall attractiveness. The 'Sell' rating indicates that investors should consider reducing exposure or avoiding new positions in the stock, based on a comprehensive evaluation of its quality, valuation, financial trends, and technical indicators.
Here’s How Suraj Products Ltd. Looks Today
As of 25 December 2025, Suraj Products Ltd. continues to face challenges across multiple dimensions. The company operates within the Iron & Steel Products sector and is classified as a microcap, which often entails higher volatility and risk. The latest data shows a Mojo Score of 33, categorised as 'Sell', underscoring the need for caution among investors.
Quality Assessment
The quality grade for Suraj Products Ltd. remains 'good', indicating that the company maintains a reasonable standard in operational and business fundamentals. Over the past five years, the company has achieved a compound annual growth rate (CAGR) of 12.70% in net sales and 11.93% in operating profit. While these figures demonstrate moderate growth, they fall short of robust expansion expected from stronger performers in the sector. Additionally, the company has reported negative earnings for four consecutive quarters, with the latest quarterly profit after tax (PAT) at ₹3.20 crores, reflecting a sharp decline of 50.7%. This persistent negative earnings trend weighs heavily on the overall quality outlook.
Valuation Perspective
Currently, the valuation grade is assessed as 'fair'. This suggests that while the stock is not excessively overvalued, it does not present a compelling bargain either. Investors should note that the company’s market capitalisation remains in the microcap range, which can limit liquidity and increase price volatility. The fair valuation grade implies that the stock’s price somewhat reflects its underlying fundamentals, but given the negative financial trends, the risk-reward balance is tilted towards caution.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial grade is currently 'negative', reflecting deteriorating profitability and operational challenges. The company’s quarterly net sales have dropped to ₹58.69 crores, the lowest in recent periods, while PBDIT (profit before depreciation, interest, and taxes) has fallen to ₹5.85 crores. These figures highlight a weakening revenue base and margin pressure. The negative financial trend is further emphasised by the stock’s underperformance relative to the broader market. Over the past year, Suraj Products Ltd. has delivered a return of -54.63%, significantly lagging behind the BSE500 index, which has generated a positive return of 6.20% during the same period. This stark contrast signals investor concerns about the company’s growth prospects and financial health.
Technical Outlook
The technical grade is 'bearish', indicating downward momentum in the stock price. Recent price movements show a decline of 2.63% on the latest trading day, with weekly and monthly returns at -12.16% and -21.75% respectively. The three-month performance is particularly weak, with a drop of 44.06%. Such trends suggest that market sentiment remains negative, and technical indicators do not currently support a near-term recovery. Investors relying on technical analysis would likely interpret this as a signal to avoid initiating new positions or to consider exiting existing holdings.
Implications for Investors
The 'Sell' rating on Suraj Products Ltd. reflects a comprehensive assessment of its current fundamentals and market position. For investors, this rating serves as a cautionary signal that the stock is facing significant headwinds, including declining profitability, weak price momentum, and underwhelming returns relative to the broader market. While the company maintains a 'good' quality grade, the negative financial trends and bearish technical outlook outweigh this strength. The fair valuation does not offer sufficient margin of safety to justify holding or buying the stock at this time.
Investors should carefully consider their risk tolerance and portfolio objectives before maintaining exposure to Suraj Products Ltd. Monitoring future quarterly results and any shifts in market sentiment will be crucial to reassessing the stock’s outlook. Until there is clear evidence of financial recovery and technical improvement, the 'Sell' rating advises prudence.
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Summary
Suraj Products Ltd.’s current 'Sell' rating by MarketsMOJO, effective since 13 Nov 2025, is grounded in a detailed evaluation of its present-day fundamentals as of 25 December 2025. Despite a decent quality grade, the company’s financial performance is under strain, with declining sales and profits, compounded by a bearish technical outlook and fair valuation. The stock’s significant underperformance relative to the broader market further reinforces the cautious stance. Investors are advised to approach the stock with prudence and closely monitor upcoming developments before considering any investment decisions.
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