Key Events This Week
Feb 23: Valuation shifts to fair amid market pressure
Feb 27: Stock falls to 52-week low of Rs.400.55
Feb 27: Week closes at Rs.403.55 (-2.78%)
Feb 23: Valuation Reset to Fair Amid Market Pressure
On Monday, 23 February 2026, Arrow Greentech Ltd’s stock opened the week on a positive note, rising 2.30% to close at Rs.424.65. This price movement coincided with a significant valuation update, as the company’s rating shifted from expensive to fair. The price-to-earnings ratio moderated to 12.21, supported by a price-to-book value of 2.96 and an EV/EBITDA of 7.03, positioning the stock more attractively relative to its packaging sector peers.
Despite this valuation improvement, the stock’s price was under pressure in recent months, reflecting broader sector challenges. Arrow Greentech’s return on capital employed (ROCE) remained robust at 78.56%, and return on equity (ROE) was a healthy 24.06%, underscoring strong operational efficiency. However, the stock’s year-to-date return was negative at -18.11%, significantly lagging the Sensex’s 2.82% gain, highlighting persistent investor caution.
Feb 24-26: Gradual Price Decline Amid Mixed Market Sentiment
Following the valuation update, the stock experienced a steady decline over the next three trading sessions. On 24 February, the price fell 1.58% to Rs.417.95, while the Sensex dropped 0.78%. The downward trend continued on 25 and 26 February, with the stock losing 1.24% and 1.26% respectively, closing at Rs.412.75 and Rs.407.55. These declines occurred despite the Sensex recovering modestly on those days, indicating stock-specific pressures.
Trading volumes also tapered off significantly during this period, from 5,878 shares on 23 February to just 560 on 26 February, suggesting reduced investor participation. The stock’s relative weakness contrasted with the broader market’s resilience, reflecting concerns over the company’s recent financial performance and sector outlook.
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Feb 27: New 52-Week Low Amid Profitability Concerns
The week concluded on a challenging note as Arrow Greentech’s stock fell to a fresh 52-week low of Rs.400.55 on 27 February 2026. Although the stock opened with a 3.35% gain intraday, reaching Rs.421.20, it ultimately closed down 0.98% at Rs.403.55. This marked a significant milestone, with the stock now trading nearly 51% below its 52-week high of Rs.816.15.
The broader market was also weaker, with the Sensex declining 1.16% to 36,322.56. Arrow Greentech’s underperformance was accentuated by subdued financial results, including a 22.68% drop in profit after tax to Rs.39.95 crores for the nine-month period ending December 2025. The company’s ROCE declined to 31.99%, the lowest in recent periods, though ROE remained relatively stable at 24.1%.
Valuation metrics remained fair, with a price-to-book value of 2.9 and a Mojo Score of 34.0, rated as ‘Sell’ by MarketsMOJO. The absence of domestic mutual fund holdings further reflected cautious market sentiment. Despite strong long-term sales and operating profit growth, the near-term outlook remains subdued amid ongoing sector headwinds.
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Weekly Price Performance: Arrow Greentech vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.424.65 | +2.30% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.417.95 | -1.58% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.412.75 | -1.24% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.407.55 | -1.26% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.403.55 | -0.98% | 36,322.56 | -1.16% |
Key Takeaways
Valuation Reset: The shift from an expensive to a fair valuation grade reflects a more balanced pricing of Arrow Greentech’s shares, supported by reasonable P/E and EV/EBITDA multiples relative to peers.
Price Under Pressure: Despite valuation improvements, the stock declined 2.78% over the week, underperforming the Sensex’s 0.96% fall, and reached a new 52-week low of Rs.400.55, signalling ongoing market caution.
Profitability Concerns: The recent 22.68% drop in profit after tax and declining ROCE to 31.99% highlight challenges in operational efficiency, though ROE remains healthy at 24.1%.
Market Sentiment: The ‘Sell’ rating by MarketsMOJO and absence of domestic mutual fund holdings indicate subdued institutional interest, reflecting cautious investor sentiment amid sector headwinds.
Long-Term Growth: Strong historical growth in net sales and operating profit suggests underlying business strength, though near-term pressures persist.
Conclusion
Arrow Greentech Ltd’s week was characterised by a valuation reset to fair levels and a significant price decline culminating in a 52-week low. While the company’s operational metrics remain solid in parts, recent profitability pressures and market dynamics have weighed on the stock’s performance. The underperformance relative to the Sensex and cautious institutional stance underscore the challenges ahead. Investors should monitor the company’s ability to stabilise earnings and capital efficiency amid evolving sector conditions. The current valuation offers a more measured entry point compared to prior expensive multiples, but the stock’s trajectory remains uncertain in the short term.
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