Abhinav Leasing & Finance Ltd Falls to 52-Week Low of Rs.1.05

Stock Price Movement and Market Context

The stock’s new low of Rs.1.05 represents a sharp fall from its 52-week high of Rs.1.99, reflecting a year-long depreciation of 47.24%. This decline contrasts starkly with the broader market, where the Sensex has delivered a positive return of 6.33% over the same period. On the day of this new low, Abhinav Leasing underperformed its sector by 8.35%, with a day change of -7.89%.

Technical indicators further underline the bearish trend, as the stock is trading below all key moving averages – including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent weakness in price action signals sustained selling pressure and a lack of upward momentum.

Broader Market Environment

The broader market environment presents a mixed picture. The Sensex opened lower at 83,252.06 points, down 487.07 points (-0.58%), and was trading at 83,555.14 points (-0.22%) at the time of reporting. Despite this, the Sensex remains within 3.12% of its 52-week high of 86,159.02 points. The index is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating some underlying market resilience despite short-term volatility.

Financial Performance and Valuation Metrics

Abhinav Leasing & Finance Ltd’s financial metrics reveal persistent challenges. The company’s long-term fundamental strength is weak, with an average Return on Equity (ROE) of just 0.63%. This figure deteriorated to -1.5% in recent assessments, indicating negative profitability relative to shareholder equity.

Net sales have contracted sharply, with a compounded annual growth rate of -29.92%. The latest nine-month results ending September 2025 show net sales at Rs.6.02 crores, down 85.29% year-on-year. Correspondingly, profit after tax (PAT) for the same period stood at Rs.0.45 crores, also declining by 85.29%. These figures highlight a significant reduction in business scale and profitability.

Despite these declines, the stock’s valuation remains relatively expensive compared to peers, trading at a Price to Book Value (P/BV) of 0.8. This premium valuation is notable given the company’s negative ROE and shrinking sales base, suggesting market expectations may not be fully aligned with current fundamentals.

Relative Performance and Shareholding Pattern

Over the past year, the stock’s return of -47.24% has underperformed not only the Sensex but also the BSE500 index across multiple time frames, including one year, three years, and three months. This consistent underperformance underscores the stock’s struggles within the NBFC sector and the broader market.

Shareholding data indicates that the majority of shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The absence of significant institutional backing could be a factor in the stock’s subdued market activity and price volatility.

Mojo Score and Rating Update

The company’s Mojo Score currently stands at 16.0, reflecting a Strong Sell rating. This is a downgrade from the previous Sell grade, which was revised on 16 April 2024. The downgrade reflects deteriorating fundamentals and weak market performance, reinforcing the cautious stance on the stock.

Market capitalisation grading remains low at 4, consistent with the company’s modest size and limited market presence within the NBFC sector.

Summary of Key Metrics

To summarise, Abhinav Leasing & Finance Ltd’s stock has reached a new 52-week low of Rs.1.05, driven by a combination of declining sales, negative returns on equity, and valuation concerns. The stock’s underperformance relative to the Sensex and sector peers, combined with a downgrade to a Strong Sell rating, highlights ongoing challenges for the company.

While the broader market shows some resilience, Abhinav Leasing’s price action and financial indicators suggest continued pressure on the stock in the near term.

Unlock special upgrade rates for a limited period. Start Saving Now →