Windlas Biotech Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for Windlas Biotech Ltd indicates a cautious stance towards the stock, suggesting that investors may want to consider reducing exposure or avoiding new purchases at this time. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment potential in the Pharmaceuticals & Biotechnology sector.

Quality Assessment

As of 16 February 2026, Windlas Biotech’s quality grade is classified as average. This reflects moderate operational efficiency and profitability metrics relative to industry peers. The company’s operating profit has grown at an annualised rate of 18.82% over the past five years, which, while positive, is considered modest within the competitive pharmaceutical landscape. Investors should note that consistent long-term growth is a critical factor in quality assessment, and Windlas Biotech’s performance suggests steady but unspectacular progress.

Valuation Perspective

The valuation grade for Windlas Biotech is fair, indicating that the stock is neither significantly undervalued nor overvalued based on current market prices and financial ratios. This balanced valuation suggests that the stock’s price reasonably reflects its earnings potential and risk profile. However, given the company’s recent financial trends and technical outlook, the fair valuation does not currently translate into a compelling buy opportunity.

Financial Trend Analysis

The financial grade is flat, signalling a lack of significant improvement or deterioration in the company’s financial health. Recent quarterly results as of December 2025 show a decline in key profitability metrics: the Profit After Tax (PAT) for the quarter stood at ₹15.00 crores, down by 10.9% compared to the previous four-quarter average. Additionally, cash and cash equivalents were at a low ₹15.03 crores during the half-year period, and PBDIT for the quarter was the lowest at ₹24.38 crores. These figures highlight challenges in maintaining robust earnings and liquidity, which weigh on the stock’s attractiveness.

Technical Outlook

Technically, Windlas Biotech is rated mildly bearish. The stock has experienced a downward trend over various time frames, with a one-day decline of 1.31%, a one-week drop of 9.51%, and a six-month fall of 24.22%. Although the one-year return is marginally positive at 0.44%, this performance significantly underperforms the broader market benchmark, the BSE500, which has delivered 11.06% returns over the same period. The technical indicators suggest limited momentum and potential resistance to upward price movement in the near term.

Stock Returns and Market Comparison

As of 16 February 2026, Windlas Biotech’s stock returns reflect a challenging environment for investors. The stock has declined by 5.59% over the past month and 3.39% over three months, with a notable 24.22% drop over six months. Year-to-date performance is slightly negative at -0.26%. These returns contrast sharply with the broader market’s positive trajectory, underscoring the stock’s relative underperformance and the rationale behind the current 'Sell' rating.

Implications for Investors

For investors, the 'Sell' rating signals caution. The combination of average quality, fair valuation, flat financial trends, and bearish technicals suggests that Windlas Biotech may face headwinds in delivering strong returns in the near term. Investors should carefully consider these factors in the context of their portfolio strategy and risk tolerance. While the company operates in a vital sector with growth potential, current metrics indicate that the stock may not be well positioned to capitalise on sector opportunities at this time.

Company Profile and Market Capitalisation

Windlas Biotech Ltd is a small-cap company operating within the Pharmaceuticals & Biotechnology sector. Its market capitalisation reflects its size relative to larger industry players, which can influence liquidity and volatility. Investors should weigh the risks and rewards associated with small-cap stocks, including potential for growth alongside heightened sensitivity to market fluctuations.

Summary of Key Metrics

To summarise, as of 16 February 2026:

• Mojo Score stands at 40.0, categorised as 'Sell'
• Quality Grade: Average
• Valuation Grade: Fair
• Financial Grade: Flat
• Technical Grade: Mildly Bearish
• Stock returns over 1 year: +0.44%, underperforming BSE500’s 11.06%
• Recent quarterly PAT decline of 10.9%
• Lowest cash and cash equivalents recorded at ₹15.03 crores

These metrics collectively inform the current recommendation and provide a comprehensive view of Windlas Biotech’s investment profile.

Looking Ahead

Investors should monitor upcoming quarterly results and sector developments closely. Improvements in profitability, cash flow, or technical momentum could alter the stock’s outlook. Until then, the 'Sell' rating advises prudence and suggests that alternative investment opportunities may offer better risk-adjusted returns.

Conclusion

Windlas Biotech Ltd’s current 'Sell' rating by MarketsMOJO reflects a balanced but cautious evaluation of its quality, valuation, financial trends, and technical indicators as of 16 February 2026. While the company maintains a foothold in the pharmaceuticals sector, current data points to challenges that investors should consider carefully before committing capital.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →