Yogi Ltd is Rated Sell by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s 'Sell' rating for Yogi Ltd indicates a cautious stance towards the stock, suggesting that investors should consider reducing exposure or avoiding new purchases at this time. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating was revised on 11 Nov 2025, reflecting a shift from a previous 'Hold' position, but the detailed analysis below is grounded in the most recent data available as of 24 December 2025.

Quality Assessment

As of 24 December 2025, Yogi Ltd’s quality grade is assessed as below average. This is primarily due to its weak long-term fundamental strength, with an average Return on Equity (ROE) of just 3.27%. ROE is a critical measure of how effectively a company uses shareholders’ equity to generate profits, and a figure this low suggests limited efficiency in capital utilisation. For investors, this signals potential challenges in sustaining profitable growth over the long term, which weighs heavily on the stock’s appeal.

Valuation Considerations

The valuation grade for Yogi Ltd is very expensive, reflecting a high Price to Book (P/B) ratio of 5.2. This indicates that the stock is trading at more than five times its book value, a premium that is significant even within the Non-Banking Financial Company (NBFC) sector. Despite this, the stock is currently trading at a discount relative to its peers’ historical valuations, which may offer some comfort to investors. The company’s ROE of 12.8% in the latest period contrasts with the longer-term average, suggesting some recent improvement, but the elevated valuation implies that much of this optimism is already priced in.

Financial Trend and Performance

Financially, Yogi Ltd shows a very positive trend as of 24 December 2025. The company has delivered an extraordinary profit increase of 1732% over the past year, accompanied by a remarkable stock return of 201.94% over the same period. This performance is reflected in a PEG ratio of zero, indicating rapid earnings growth relative to its price. However, despite these gains, the company remains a microcap with limited institutional interest; domestic mutual funds hold no stake in Yogi Ltd. This absence of significant mutual fund ownership may suggest concerns about the stock’s sustainability or valuation at current levels.

Technical Outlook

From a technical perspective, Yogi Ltd is mildly bullish. While the stock has experienced some short-term volatility, including a 3.38% decline on the most recent trading day, the overall technical indicators suggest modest upward momentum. This mild bullishness, however, is tempered by the fundamental and valuation concerns outlined above, which caution against relying solely on technical signals for investment decisions.

Stock Returns and Market Performance

As of 24 December 2025, Yogi Ltd’s stock returns present a mixed picture. The one-day return was negative at -3.38%, and the one-week return also declined by 3.73%. However, the one-month return was positive at +1.11%, indicating some short-term recovery. Over three months, the stock fell by 6.21%, and over six months, it declined marginally by 0.93%. The standout figure is the year-to-date (YTD) return of +206.34%, closely aligned with the one-year return of +201.94%. These figures highlight the stock’s strong rally over the past year despite recent short-term fluctuations.

Investor Implications

For investors, the 'Sell' rating on Yogi Ltd suggests caution. The company’s very expensive valuation combined with below-average quality metrics and limited institutional backing raises concerns about the sustainability of recent gains. While the financial trend is very positive and technical indicators show mild bullishness, these factors do not fully offset the risks associated with the stock’s fundamentals and valuation. Investors should carefully weigh these considerations and monitor developments closely before making investment decisions.

Summary

In summary, Yogi Ltd’s current 'Sell' rating by MarketsMOJO reflects a nuanced assessment of the company’s position as of 24 December 2025. Despite impressive recent profit growth and strong stock returns, the company’s below-average quality, very expensive valuation, and limited institutional interest temper enthusiasm. The mildly bullish technical outlook offers some support but does not outweigh fundamental concerns. Investors should approach Yogi Ltd with caution, considering both the risks and opportunities presented by its current profile.

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