Rating Overview and Context
On 29 December 2025, MarketsMOJO revised Surana Telecom and Power Ltd’s rating from 'Sell' to 'Strong Sell', reflecting a significant deterioration in the company’s overall assessment. The Mojo Score dropped sharply by 21 points, from 33 to 12, signalling heightened concerns about the stock’s prospects. This rating encapsulates a comprehensive evaluation of the company’s quality, valuation, financial trend, and technical outlook, all of which currently weigh negatively on investor sentiment.
Here’s How the Stock Looks Today
As of 03 February 2026, Surana Telecom and Power Ltd remains a microcap player in the power sector, facing considerable challenges across multiple fronts. The company’s stock performance over recent periods has been weak, with a one-day gain of 3.94% offering only a brief respite amid longer-term declines. Over the past year, the stock has delivered a negative return of -14.88%, underperforming the broader market benchmark BSE500, which has generated a positive 9.20% return in the same timeframe.
Quality Assessment
The company’s quality grade is rated below average, reflecting fundamental weaknesses that undermine its operational stability. Over the last five years, Surana Telecom and Power Ltd has experienced a staggering -207.28% compound annual growth rate (CAGR) in operating profits, indicating severe erosion in core earnings capacity. This decline is compounded by a poor EBIT to interest coverage ratio averaging -1.12, signalling the company’s inability to comfortably service its debt obligations. Furthermore, the average return on equity (ROE) stands at a modest 7.08%, highlighting limited profitability generated from shareholders’ funds. These factors collectively point to a fragile financial foundation and raise concerns about the company’s long-term viability.
Valuation Considerations
Surana Telecom and Power Ltd’s valuation is currently classified as risky. Despite the stock’s negative returns over the past year, the company’s profits have paradoxically risen by 127.7%, resulting in a very low price-to-earnings-to-growth (PEG) ratio of 0.1. While this might superficially suggest undervaluation, the negative operating profits and volatile earnings cast doubt on the sustainability of this improvement. Investors should be cautious, as the stock trades at valuations that do not adequately compensate for the underlying financial risks and operational uncertainties.
Financial Trend and Recent Results
The financial trend for Surana Telecom and Power Ltd is flat, with recent quarterly and yearly results showing limited improvement. The company reported a quarterly profit after tax (PAT) of ₹0.76 crore in September 2025, which represents a sharp decline of 66.1% compared to previous periods. Operating cash flow for the year remains low at ₹3.50 crore, and the debtors turnover ratio for the half-year is at a concerning low of 2.64 times, indicating potential inefficiencies in receivables management. These metrics suggest that the company is struggling to generate consistent cash flows and maintain operational momentum.
Technical Outlook
From a technical perspective, the stock is rated bearish. The recent price action, including a 1-month decline of -8.60% and a 3-month drop of -16.35%, reflects negative market sentiment. The stock’s inability to sustain gains despite short-term rallies, such as the 3.94% rise on the latest trading day, underscores persistent selling pressure. This bearish technical grade aligns with the fundamental challenges and valuation risks, reinforcing the cautious stance for investors.
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Implications for Investors
The current 'Strong Sell' rating for Surana Telecom and Power Ltd serves as a clear caution to investors. The combination of weak fundamentals, risky valuation, flat financial trends, and bearish technical signals suggests that the stock carries significant downside risk. Investors should carefully consider these factors before initiating or maintaining positions in the company. The rating implies that the stock is expected to underperform relative to the broader market and peers in the power sector, and that capital preservation should be a priority.
Summary of Key Metrics as of 03 February 2026
To summarise, the stock’s recent returns include a 1-day gain of 3.94%, a 1-week increase of 2.86%, but declines over longer periods such as -8.60% in 1 month and -16.35% over 3 months. Year-to-date performance stands at -10.91%, while the 1-year return is -14.88%. These figures highlight the stock’s ongoing struggles to regain investor confidence. The company’s microcap status and sector affiliation with power further contextualise its risk profile, as smaller companies often face greater volatility and liquidity constraints.
Conclusion
Surana Telecom and Power Ltd’s current rating of 'Strong Sell' by MarketsMOJO reflects a comprehensive assessment of its deteriorated financial health and market position. While the rating was updated on 29 December 2025, the detailed analysis presented here is based on the latest data as of 03 February 2026, ensuring investors have a current and accurate understanding of the stock’s outlook. Given the multiple challenges identified, investors are advised to approach this stock with caution and consider alternative opportunities with stronger fundamentals and more favourable valuations.
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