Key Events This Week
Feb 9: Stock surges 9.71% to ₹789.10 on strong volume
Feb 11: Price jumps 5.48% to ₹833.15, hitting intraday highs
Feb 12: MarketsMOJO upgrades rating to Hold; technical momentum shifts
Feb 13: Q3 FY26 results reveal 76% profit plunge despite revenue growth
Strong Opening Rally on 9 February
The week began with a robust rally on 9 February 2026, when Alicon Castalloy’s stock price surged 9.71% to close at ₹789.10, supported by a volume of 1,196 shares. This sharp gain outpaced the Sensex’s 1.04% rise to 37,113.23, signalling strong investor interest. The sizeable price jump set a positive tone for the week, reflecting renewed optimism despite recent financial challenges.
Continued Gains and Intraday Highs on 11 February
On 11 February, the stock further advanced by 5.48%, closing at ₹833.15 and reaching an intraday high of ₹835.00. This marked the week’s peak price, underscoring strong buying momentum. The Sensex, by contrast, posted a modest 0.13% gain to 37,256.72, highlighting Alicon Castalloy’s relative outperformance within the broader market. The stock’s upward trajectory was supported by technical factors and growing investor confidence ahead of key announcements.
MarketsMOJO Upgrades Rating and Technical Momentum Shifts on 12 February
On 12 February, MarketsMOJO upgraded Alicon Castalloy’s investment rating from Sell to Hold, citing a nuanced reassessment of the company’s financial and technical outlook. The stock closed slightly lower at ₹830.70 (-0.29%) but remained near weekly highs. The upgrade reflected mixed financial signals, including flat recent earnings but attractive valuation metrics and improving technical indicators.
Technical momentum shifted from bearish to mildly bearish, with key indicators such as MACD remaining bearish but On-Balance Volume and Dow Theory showing mild bullishness on weekly charts. The Relative Strength Index hovered neutrally, suggesting consolidation. This technical evolution suggested a stabilisation of price action, supporting the Hold rating despite ongoing caution.
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Q3 FY26 Results on 13 February Reveal Profit Decline Amid Revenue Growth
Despite the positive price momentum, Alicon Castalloy reported a sharp 76% plunge in profit for the third quarter of fiscal year 2025-26, announced on 13 February. This decline contrasted with revenue growth, highlighting operational pressures and margin compression. The stock reacted negatively, falling 4.89% to close at ₹790.10 on the day, underperforming the Sensex’s 1.40% drop to 36,532.48.
This earnings shock tempered the week’s gains but did not erase the overall positive trend established earlier. The mixed financial results underscore the challenges Alicon Castalloy faces in balancing growth with profitability amid sectoral headwinds.
Daily Price Comparison: Alicon Castalloy vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.789.10 | +9.71% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.789.85 | +0.10% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.833.15 | +5.48% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.830.70 | -0.29% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.790.10 | -4.89% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: Alicon Castalloy’s 9.85% weekly gain significantly outperformed the Sensex’s 0.54% decline, driven by strong early-week rallies and a technical momentum shift. The MarketsMOJO upgrade to Hold reflects improved technical indicators and attractive valuation metrics, with the stock trading at an EV/CE ratio of 1.8, below peer averages. The mild bullishness in volume and Dow Theory indicators suggests potential for price stabilisation.
Cautionary Notes: The company’s financial performance remains mixed, with a 76% profit plunge in Q3 FY26 despite revenue growth, and a 29.98% decline in PAT over the latest six months. High leverage with a debt-equity ratio of 3.91 times and low debtor turnover of 0.34 times highlight operational and financial risks. Technical indicators such as MACD and KST remain bearish on longer timeframes, signalling that sustained upward momentum is not yet confirmed.
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Conclusion
Alicon Castalloy Ltd’s week was marked by a strong price rally and a positive technical momentum shift, culminating in a MarketsMOJO upgrade to Hold. The stock’s 9.85% gain contrasted sharply with the Sensex’s decline, reflecting renewed investor interest despite mixed financial results and sectoral challenges. While the Q3 profit plunge raises caution, the company’s attractive valuation and improving technical signals provide a foundation for cautious optimism.
Investors should monitor upcoming financial disclosures and technical developments closely, as the stock navigates a complex landscape of operational headwinds and market sentiment shifts. The Hold rating suggests maintaining positions with vigilance rather than aggressive accumulation or exit, balancing the potential for recovery against ongoing risks in the auto components sector.
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