Stock Price Movement and Market Context
The stock price of Add-Shop E-Retail Ltd declined to Rs.7.33, representing its lowest level in the past year and since listing. This new low comes after two consecutive days of losses, with the stock falling by 7.78% over this period. Today’s performance also lagged the sector by 2.36%, underscoring the relative weakness of the stock within the e-retail and e-commerce space.
Technical indicators further highlight 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 moving averages. This suggests sustained downward momentum and limited short-term support levels.
In contrast, the broader market has shown resilience. The Sensex opened flat but gained 389 points to close at 82,281.36, a 0.52% increase. The benchmark index remains within 4.71% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. However, Add-Shop E-Retail Ltd’s performance diverges sharply from this positive market backdrop.
Financial Performance and Profitability Trends
Over the last year, Add-Shop E-Retail Ltd has generated a negative return of 39.69%, significantly underperforming the Sensex’s 8.41% gain. This underperformance is consistent with the company’s longer-term trend, having lagged the BSE500 index in each of the past three annual periods.
The company’s financial results for the quarter ended September 2025 reveal further pressures. Net sales declined by 7.3% to Rs.33.40 crore compared to the previous four-quarter average. Profitability metrics also weakened, with PBDIT falling to a low of Rs.0.75 crore and PBT less other income dropping to Rs.0.29 crore, the lowest levels recorded in recent quarters.
These figures reflect a subdued revenue environment and tight margins, which have contributed to the stock’s diminished appeal among investors and analysts alike.
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Long-Term Growth and Valuation Metrics
The company’s long-term fundamentals remain under pressure, with a compound annual growth rate (CAGR) of operating profits declining by 34.12% over the past five years. This deterioration in profitability has weighed heavily on investor sentiment and contributed to the stock’s strong sell rating by MarketsMOJO, which was recently downgraded from a sell to a strong sell on 6 January 2026.
Despite these challenges, certain valuation metrics suggest the stock is trading at an attractive level relative to its capital employed. The return on capital employed (ROCE) stands at 2.8%, while the enterprise value to capital employed ratio is a modest 0.3. These figures indicate a valuation that is fair when compared to the historical averages of its peer group within the e-retail sector.
Interestingly, while the stock has declined by nearly 40% over the past year, the company’s profits have increased by 170.5% during the same period. This disparity is reflected in a low price/earnings to growth (PEG) ratio of 0.1, signalling that the market may be pricing in continued headwinds despite recent profit improvements.
Shareholding Pattern and Market Position
The majority of Add-Shop E-Retail Ltd’s shares are held by non-institutional investors, which may contribute to higher volatility and less stable trading patterns. The company operates within the highly competitive e-retail and e-commerce sector, where rapid changes in consumer behaviour and technological innovation can significantly impact market share and profitability.
Given the stock’s recent price action and fundamental profile, it remains one of the more closely watched micro-cap stocks in the sector, particularly in light of its strong sell mojo grade of 23.0 and market cap grade of 4.
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Summary of Recent Trends
In summary, Add-Shop E-Retail Ltd’s fall to Rs.7.33 marks a continuation of a downward trajectory that has persisted over the past year. The stock’s 52-week high was Rs.14, indicating a near 48% decline from that peak. The company’s financial results have shown weakening sales and profitability, while its long-term growth metrics remain subdued.
Although the broader market and sector have shown resilience, Add-Shop E-Retail Ltd’s relative underperformance and technical weakness highlight the challenges it faces in regaining investor confidence. The stock’s valuation metrics suggest it is trading at a level consistent with its current fundamentals, reflecting the cautious stance of market participants.
Market Outlook and Positioning
While the Sensex continues to hover near its 52-week highs, supported by mega-cap stocks and positive market sentiment, Add-Shop E-Retail Ltd remains a micro-cap stock with a strong sell mojo grade, indicating significant caution among analysts and investors. The company’s position within the competitive e-retail sector and its financial profile suggest that it will remain under close observation as it navigates the evolving market landscape.
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