Stock Performance and Market Context
On 27 Feb 2026, AGS Transact Technologies Ltd’s share price fell by 2.72% during the trading session, underperforming its Financial Technology sector by 3.16%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market, where the Sensex opened flat but declined by 432.56 points (-0.56%) to close at 81,787.92. Notably, the Sensex itself is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed signals for the market overall.
AGS Transact’s 52-week high was Rs.21.12, highlighting the steep decline of 83.10% over the past year. This stark underperformance is further emphasised when compared to the Sensex’s positive 9.63% return over the same period.
Financial Metrics and Recent Results
The company’s financial health remains a concern, with a Mojo Score of 1.0 and a Mojo Grade of Strong Sell as of 19 Dec 2024, downgraded from Sell. This rating reflects weak long-term fundamentals and deteriorating financial metrics. AGS Transact has not declared any financial results in the last six months, adding to the uncertainty surrounding its current position.
In its December 2024 results, the company reported a sharp decline in net sales by 40.4%, accompanied by very negative earnings. The quarterly profit after tax (PAT) plunged to a loss of Rs.194.26 crore, representing a staggering fall of 8555.3% compared to the previous four-quarter average. Operating profit to interest coverage ratio also deteriorated to -4.60 times, indicating difficulties in meeting interest obligations. Additionally, the debtors turnover ratio for the half-year stood at a low 2.22 times, signalling slower collection efficiency.
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Debt and Profitability Concerns
AGS Transact’s ability to service its debt remains limited, with a high Debt to EBITDA ratio of 3.33 times. This elevated leverage ratio points to increased financial risk, especially given the company’s low profitability. The average return on equity (ROE) stands at a modest 0.57%, indicating minimal returns generated on shareholders’ funds.
Profitability has been under pressure for an extended period, with the company reporting negative results for two consecutive quarters prior to December 2024. Over the past year, profits have declined by 86.5%, compounding the stock’s poor performance and investor concerns.
Promoter Stake and Confidence
Adding to the challenges, promoters have reduced their stake in AGS Transact by 25.76% over the previous quarter, now holding 26.48% of the company. This reduction in promoter holding may be interpreted as a sign of diminished confidence in the company’s near-term prospects.
Long-Term and Relative Performance
AGS Transact’s underperformance extends beyond the last year. The stock has lagged the BSE500 index over the last three years, one year, and three months, reflecting persistent difficulties in regaining investor favour and market traction. The cumulative return of -83.10% over the past year starkly contrasts with the broader market’s positive trajectory.
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Summary of Key Financial and Market Indicators
To summarise, AGS Transact Technologies Ltd is currently characterised by:
- A new 52-week low of Rs.3.5, down from a high of Rs.21.12 in the past year
- Mojo Grade downgraded to Strong Sell with a score of 1.0
- Negative quarterly PAT of Rs.-194.26 crore, a decline of over 8500%
- High Debt to EBITDA ratio of 3.33 times and low operating profit to interest coverage at -4.60 times
- Promoter stake reduced by over 25% in the last quarter
- Underperformance relative to Sensex and BSE500 indices over multiple time frames
These factors collectively illustrate the considerable challenges faced by AGS Transact Technologies Ltd in maintaining financial stability and market confidence.
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