Rating Context and Overview
The current Strong Sell rating for Yamuna Syndicate Ltd was assigned on 07 July 2025, following a significant decline in the company’s mojo score from 38 to 1, a drop of 37 points. This rating reflects a comprehensive assessment of the company’s quality, valuation, financial trend, and technical outlook. It is important for investors to understand that while the rating was set mid-2025, the data and performance indicators presented here are up to date as of 03 February 2026, ensuring an accurate and timely evaluation of the stock’s prospects.
Here’s How Yamuna Syndicate Ltd Looks Today
As of 03 February 2026, Yamuna Syndicate Ltd remains a microcap company operating within the Trading & Distributors sector. The company’s financial and market indicators continue to signal caution for investors, with several key metrics underscoring the challenges it faces.
Quality Assessment
The company’s quality grade is currently rated as below average. This is evidenced by a weak long-term fundamental strength, with a compound annual growth rate (CAGR) of operating profits at -1.68% over the past five years. Such negative growth indicates that the company has struggled to expand its core earnings base sustainably. Additionally, the company’s ability to service debt is limited, with an average EBIT to interest coverage ratio of just 1.51, signalling vulnerability to financial stress. Return on equity (ROE) stands at an average of 8.57%, which is modest and suggests low profitability relative to shareholders’ funds. These factors collectively contribute to the company’s diminished quality profile.
Valuation Considerations
Currently, Yamuna Syndicate Ltd does not qualify for a positive valuation grade. The absence of a favourable valuation rating reflects concerns about the company’s price relative to its earnings, growth prospects, and risk profile. Investors should note that the company’s market capitalisation remains in the microcap category, which often entails higher volatility and risk. The lack of interest from domestic mutual funds, which hold 0% stake, further highlights the market’s cautious stance towards the stock’s valuation and underlying business fundamentals.
Financial Trend Analysis
The financial trend for Yamuna Syndicate Ltd is categorised as very negative. The latest data shows a decline in net sales by -2.11%, accompanied by four consecutive quarters of negative results. Operating cash flow for the year is deeply negative at Rs -7.60 crores, indicating cash generation issues. Profit before tax excluding other income (PBT less OI) for the latest quarter stands at Rs 19.94 crores, down by 25.8% compared to the previous four-quarter average. Similarly, profit after tax (PAT) for the quarter is Rs 20.42 crores, reflecting a 25.2% decline. These figures illustrate a deteriorating financial position, with profitability and cash flow under pressure.
Technical Outlook
The technical grade for Yamuna Syndicate Ltd is bearish. Stock price performance over various time frames confirms this trend, with a 1-month decline of -6.32%, a 3-month drop of -27.14%, and a 6-month fall of -30.97%. Year-to-date, the stock has decreased by -6.79%, and over the past year, it has lost -27.45%. The absence of any significant positive momentum or recovery signals suggests that technical indicators remain unfavourable, reinforcing the cautious stance advised by the current rating.
Implications for Investors
The Strong Sell rating from MarketsMOJO indicates that investors should exercise considerable caution with Yamuna Syndicate Ltd. The rating reflects a combination of weak fundamentals, poor financial trends, unattractive valuation, and negative technical signals. For investors, this means the stock currently carries elevated risk and limited upside potential. It is advisable to carefully consider these factors before initiating or maintaining positions in the company’s shares.
Summary of Key Metrics as of 03 February 2026
- Operating profit CAGR (5 years): -1.68%
- EBIT to Interest coverage ratio (avg): 1.51
- Return on Equity (avg): 8.57%
- Net sales growth: -2.11%
- Operating cash flow (yearly): Rs -7.60 crores
- PBT less other income (quarterly): Rs 19.94 crores, down 25.8%
- PAT (quarterly): Rs 20.42 crores, down 25.2%
- Stock returns: 1M -6.32%, 3M -27.14%, 6M -30.97%, 1Y -27.45%
This week's revealed pick, a Large Cap from Public Banks with TARGET PRICE, is already showing movement! Get the complete analysis before it's too late.
- - Target price included
- - Early movement detected
- - Complete analysis ready
Sector and Market Position
Yamuna Syndicate Ltd operates within the Trading & Distributors sector but does not belong to any specific industry classification. Its microcap status places it among smaller companies with limited market capitalisation, which often face challenges in liquidity and investor interest. The absence of domestic mutual fund holdings suggests a lack of institutional confidence, which can be a critical factor for microcap stocks seeking stability and growth.
Conclusion
In conclusion, the Strong Sell rating assigned to Yamuna Syndicate Ltd by MarketsMOJO reflects a comprehensive evaluation of the company’s current financial health and market performance as of 03 February 2026. Investors should interpret this rating as a signal to approach the stock with caution, given the combination of weak fundamentals, negative financial trends, unattractive valuation, and bearish technical indicators. While the company may have potential in the longer term, the present data advises prudence and careful consideration before investment.
Unlock special upgrade rates for a limited period. Start Saving Now →
