Examining the quality parameter, Telogica’s financial performance for Q2 FY25-26 remained largely flat, with operating cash flow at a low of ₹-10.85 crores and profit before tax excluding other income at ₹0.12 crore. The company’s long-term fundamental strength is characterised by an average Return on Capital Employed (ROCE) of 5.66%, indicating modest capital efficiency. Operating profit has expanded at an annual rate of 16.15% over the past five years, suggesting some growth momentum, albeit at a moderate pace. However, the company’s ability to service debt appears constrained, with a Debt to EBITDA ratio of -1.00 times, signalling potential leverage concerns.
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From a valuation standpoint, Telogica presents a fair profile with a ROCE of 7.1 and an Enterprise Value to Capital Employed ratio of 2.7. The stock is trading at a discount relative to its peers’ historical valuations, which may be reflective of market sentiment and sector-specific challenges. Despite this, the stock’s price has declined to ₹11.61 from a previous close of ₹12.22, with a 52-week range between ₹7.67 and ₹24.53, indicating significant volatility over the past year.
Financial trend analysis reveals that Telogica has underperformed the broader market indices. Over the last year, the stock has generated a return of -47.25%, contrasting with the BSE500’s positive return of 8.30% during the same period. Profitability has also contracted, with profits falling by approximately 48.4% year-on-year. These figures highlight the challenges faced by the company in maintaining growth and profitability amid competitive pressures and market dynamics.
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Technical indicators have shifted, influencing the revision in Telogica’s evaluation. The technical trend has moved from mildly bullish to mildly bearish. Weekly MACD remains mildly bullish, but monthly MACD and Bollinger Bands signal bearish momentum. The Relative Strength Index (RSI) shows no clear signal on both weekly and monthly charts. Moving averages on a daily basis indicate mild bullishness, yet the KST and Dow Theory indicators on weekly and monthly timeframes suggest mild bearishness. This mixed technical picture reflects uncertainty in price momentum and market sentiment.
Telogica’s market capitalisation grade stands at 4, with a Mojo Score of 26.0, reflecting the overall assessment of the company’s investment profile. The stock’s day change was recorded at -4.99% on 19 Nov 2025, the date marking the adjustment in its evaluation. Over longer periods, Telogica’s returns have varied significantly, with a 5-year return of 625.63% contrasting with a 1-year return of -47.25%, underscoring the stock’s volatility and cyclical nature within the telecom equipment sector.
In summary, the revision in Telogica’s investment evaluation is driven by a combination of subdued financial performance, valuation considerations, and a shift in technical indicators. Investors analysing the stock should weigh these factors carefully against sector trends and broader market conditions to inform their decisions.
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