Current Rating and Its Significance
The 'Hold' rating assigned to Suratwwala Business Group Ltd indicates a neutral stance for investors. It suggests that while the stock may not be an immediate buy, it is not recommended for sale either. This rating reflects a balance of strengths and weaknesses across key parameters such as quality, valuation, financial trends, and technical indicators. Investors should consider this rating as a signal to maintain their current holdings and monitor the stock closely for future developments.
Quality Assessment
As of 25 December 2025, Suratwwala Business Group Ltd holds an average quality grade. The company demonstrates a strong ability to service its debt, with a low Debt to EBITDA ratio of 1.17 times, indicating manageable leverage and financial stability. However, the long-term growth outlook remains subdued, with net sales declining at an annual rate of -10.37% and operating profit shrinking by -17.02% over the past five years. This mixed quality profile suggests that while the company is financially stable, its growth prospects require cautious evaluation.
Valuation Considerations
The valuation grade for Suratwwala Business Group Ltd is classified as very expensive. The stock trades at a premium with an Enterprise Value to Capital Employed ratio of 5.3, and a Return on Capital Employed (ROCE) of 18.8%. Despite this, the stock is currently priced at a discount relative to its peers’ historical valuations, which may offer some cushion for investors. The Price/Earnings to Growth (PEG) ratio stands at 1.4, reflecting moderate expectations for future earnings growth relative to its valuation. Investors should weigh the premium valuation against the company’s financial performance and sector dynamics.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial trend for Suratwwala Business Group Ltd is outstanding, reflecting recent improvements in profitability and sales. The company declared positive results for two consecutive quarters, with net sales rising by 62.88% in the latest period. The Profit After Tax (PAT) for the last six months reached ₹13.49 crores, marking a remarkable growth of 212.99%. Quarterly Profit Before Depreciation, Interest, and Taxes (PBDIT) also hit a high of ₹11.06 crores. Despite these encouraging short-term trends, the stock’s year-to-date return remains deeply negative at -70.78%, and the one-year return is -70.39%, underscoring the volatility and challenges faced over the longer term.
Technical Outlook
Technically, the stock is mildly bearish as of 25 December 2025. While it recorded a positive daily change of 2.26%, the weekly performance shows a decline of -2.69%. The monthly and quarterly returns are positive at +19.61% and +10.56% respectively, but the six-month and year-to-date returns remain negative. This mixed technical picture suggests that the stock is experiencing short-term recovery phases amid a broader downtrend, warranting a cautious approach for traders and investors relying on technical signals.
Additional Market Insights
Suratwwala Business Group Ltd is classified as a microcap company within the realty sector. Despite its size, domestic mutual funds hold no stake in the company, which may indicate limited institutional confidence or concerns about valuation and business prospects. This absence of mutual fund participation could affect liquidity and market interest, factors that investors should consider alongside fundamental and technical analyses.
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What This Rating Means for Investors
For investors, the 'Hold' rating on Suratwwala Business Group Ltd suggests maintaining existing positions rather than initiating new buys or selling off holdings. The company’s strong recent financial performance and ability to service debt provide a foundation of stability. However, the very expensive valuation and mixed technical signals imply limited upside potential in the near term. The average quality grade and subdued long-term growth trends further reinforce a cautious stance.
Investors should monitor quarterly results and sector developments closely, especially given the stock’s volatility and the absence of institutional backing. The current rating encourages a watchful approach, balancing the company’s recent operational improvements against valuation concerns and market dynamics.
Summary
In summary, Suratwwala Business Group Ltd’s 'Hold' rating as of 11 Dec 2025 reflects a nuanced view of the company’s prospects. As of 25 December 2025, the stock exhibits strong financial trends and debt management but faces challenges in valuation and technical momentum. This balanced outlook advises investors to maintain their holdings while staying alert to future developments that could shift the company’s investment appeal.
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