Current Rating Overview
On 13 November 2025, MarketsMOJO revised Suraj Products Ltd.’s rating from 'Hold' to 'Sell', reflecting a significant change in the company’s overall assessment. The Mojo Score dropped by 15 points, moving from 51 to 36, signalling a weaker outlook. This rating encapsulates a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical indicators as they stand today.
Here’s How Suraj Products Ltd. Looks Today
As of 05 January 2026, Suraj Products Ltd. remains a microcap player in the Iron & Steel Products sector, facing considerable challenges. The stock has experienced a notable decline in recent months, with a one-year return of -57.82%. Shorter-term performance also reflects weakness, including a 3-month drop of -41.95% and a one-month decline of -13.15%. Despite a modest year-to-date gain of +0.83%, the overall trend remains negative.
Quality Assessment
The company’s quality grade is classified as good, indicating that Suraj Products Ltd. maintains a reasonable operational foundation. Over the past five years, net sales have grown at an annualised rate of 12.70%, while operating profit has increased at 11.93% annually. These figures suggest moderate growth, but the recent quarterly results paint a more concerning picture. The company has reported negative earnings for four consecutive quarters, with profit before tax (excluding other income) falling by 51.65% to ₹3.82 crores and net profit after tax declining by 50.7% to ₹3.20 crores in the latest quarter. Net sales have also hit a low of ₹58.69 crores, underscoring operational pressures.
Valuation Perspective
Suraj Products Ltd. currently holds an attractive valuation grade. This suggests that, despite the company’s struggles, the stock price may be undervalued relative to its intrinsic worth or sector peers. For value-oriented investors, this could represent a potential opportunity, provided the company can stabilise its financial performance. However, valuation alone does not offset the risks posed by deteriorating fundamentals and negative financial trends.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial grade for Suraj Products Ltd. is negative, reflecting the company’s recent earnings decline and operational challenges. The persistent negative quarterly results highlight a weakening profitability trend. The sharp falls in profit before tax and net profit, combined with subdued sales figures, indicate that the company is currently struggling to generate sustainable earnings growth. This negative financial trajectory is a key factor influencing the current 'Sell' rating, signalling caution for investors.
Technical Outlook
From a technical standpoint, the stock is rated bearish. The recent price action, including a 2.23% decline on the latest trading day and significant drops over one week (-3.75%) and one month (-13.15%), confirms downward momentum. This bearish technical grade suggests that market sentiment remains weak, and the stock may face further selling pressure in the near term. Investors relying on technical analysis should be wary of potential continued declines.
Implications for Investors
The 'Sell' rating assigned to Suraj Products Ltd. by MarketsMOJO reflects a comprehensive assessment of the company’s current challenges and market conditions. While the valuation appears attractive, the negative financial trend and bearish technical signals outweigh this factor, indicating elevated risk. The good quality grade suggests the company has some operational strengths, but these have not translated into recent profitability or price stability.
For investors, this rating implies a cautious approach. Those holding the stock may consider reducing exposure or monitoring closely for signs of financial recovery and technical improvement before increasing positions. Prospective investors should weigh the risks of continued earnings weakness against the potential value opportunity, ideally seeking confirmation from future quarterly results and market developments.
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Summary
In summary, Suraj Products Ltd.’s current 'Sell' rating is grounded in a detailed evaluation of its operational quality, valuation, financial health, and technical positioning as of 05 January 2026. The company’s moderate growth over the long term is overshadowed by recent earnings declines and negative market sentiment. While the stock’s valuation may attract some investors, the prevailing financial and technical weaknesses suggest caution. This rating serves as a guide for investors to carefully assess risk and monitor developments before making investment decisions.
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