Current Rating and Its Implications
MarketsMOJO's 'Sell' rating on Thacker & Company Ltd indicates a cautious stance for investors considering this microcap Non-Banking Financial Company (NBFC). This recommendation suggests that the stock is expected to underperform relative to the broader market and its sector peers in the near to medium term. The rating was revised on 18 Nov 2025, reflecting a reassessment of the company's fundamentals, valuation, financial trends, and technical outlook. Investors should interpret this rating as a signal to evaluate risk carefully before committing capital to this stock.
Here's How the Stock Looks Today
As of 25 December 2025, Thacker & Company Ltd's Mojo Score stands at 35.0, categorised under the 'Sell' grade. This score represents a significant decline from the previous 51 score when the rating was 'Hold'. The stock's day change is marginally negative at -0.03%, but its longer-term returns paint a more concerning picture. Over the past year, the stock has delivered a negative return of -21.87%, considerably underperforming the BSE500 index, which has generated a positive 6.20% return in the same period.
Quality Assessment
The company's quality grade is assessed as average. This reflects a lack of robust growth and operational strength. Over the last five years, net sales have declined at an annualised rate of -2.34%, indicating challenges in expanding the business. The latest quarterly results for September 2025 show a 18.2% fall in profit after tax (PAT) to ₹4.54 crores compared to the previous four-quarter average. Additionally, cash and cash equivalents have dwindled to ₹0.57 crores at half-year, signalling liquidity constraints. These factors collectively suggest that the company is struggling to maintain consistent profitability and operational efficiency.
Valuation Considerations
Valuation is a critical factor behind the 'Sell' rating, with the stock graded as very expensive. Despite the subdued financial performance, Thacker & Company Ltd trades at a price-to-book value of 0.9, which is a premium relative to its peers' historical valuations. The return on equity (ROE) stands at 11.4%, which is modest but does not justify the elevated valuation. This disparity between valuation and earnings performance raises concerns about the stock's price sustainability, especially given the negative returns and profit decline of -8.8% over the past year.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial grade for Thacker & Company Ltd is flat, indicating stagnation rather than growth or decline. The company’s earnings have not shown meaningful improvement recently, with the latest quarterly PAT falling sharply and cash reserves at a low ebb. This flat trend suggests limited momentum in financial health, which is a concern for investors seeking growth or stability. The lack of positive financial trajectory undermines confidence in the stock’s ability to generate shareholder value in the near term.
Technical Outlook
Technically, the stock is graded as mildly bearish. This assessment is consistent with the recent price performance, where the stock has declined by 10.23% over three months and 16.46% over six months. The mild bearishness reflects downward momentum and weak investor sentiment, which could persist unless there is a significant change in fundamentals or market conditions. The technical signals reinforce the cautious stance suggested by the fundamental and valuation analysis.
Market Performance and Peer Comparison
Thacker & Company Ltd has underperformed the broader market significantly. While the BSE500 index has delivered a 6.20% return over the past year, this stock has declined by 21.87%. This underperformance highlights the relative weakness of the company within its sector and the wider market. Investors comparing this stock to peers in the NBFC sector will note its lacklustre growth, expensive valuation, and subdued financial trends as key reasons for its current rating.
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What This Means for Investors
For investors, the 'Sell' rating on Thacker & Company Ltd serves as a cautionary signal. The combination of average quality, very expensive valuation, flat financial trends, and mildly bearish technicals suggests limited upside potential and elevated risk. The stock’s underperformance relative to the market and peers further emphasises the challenges it faces. Investors should carefully consider these factors and their own risk tolerance before investing in this microcap NBFC.
While the company may have niche strengths or potential turnaround catalysts, the current data as of 25 December 2025 does not support a positive outlook. Those holding the stock might consider re-evaluating their positions, while prospective investors may prefer to explore alternatives with stronger fundamentals and more attractive valuations.
Summary
In summary, Thacker & Company Ltd’s 'Sell' rating reflects a comprehensive assessment of its current standing. The rating was updated on 18 Nov 2025, but the detailed analysis here is based on the latest data available as of 25 December 2025. The stock’s average quality, expensive valuation, flat financial performance, and bearish technical signals collectively justify the cautious recommendation. Investors should weigh these insights carefully in their portfolio decisions.
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