Key Events This Week
Feb 09: Valuation shifts to very attractive amid market pressure
Feb 12: Stock falls to 52-week low of Rs.14 amid continued downtrend
Feb 13: Reports positive quarterly turnaround amid lingering challenges
Feb 13: Q3 FY26 strong profit rebound masks operational concerns
Monday, 09 February 2026: Valuation Attractiveness Amid Market Pressure
B N Rathi Securities began the week on a positive note, gaining 3.77% to close at Rs.15.13, significantly outperforming the Sensex’s 1.04% rise. This rally coincided with a reappraisal of the company’s valuation metrics, which shifted to a “very attractive” rating despite ongoing market headwinds. The stock’s price-to-earnings ratio stood at 10.67, markedly lower than many NBFC peers, while its price-to-book value of 0.83 indicated undervaluation relative to book equity. These factors likely contributed to renewed investor interest, supporting the price gain on the day.
Tuesday, 10 February 2026: Mild Correction Amid Lower Volumes
The stock experienced a slight pullback, declining 0.46% to Rs.15.06 on reduced volume of 20,647 shares. The Sensex continued its upward trend with a modest 0.25% gain. The minor retreat in B N Rathi Securities’ price may reflect short-term profit-taking following Monday’s surge, though the stock remained near its weekly high.
Wednesday, 11 February 2026: Continued Pressure and Consolidation
On Wednesday, the stock price edged down another 0.46% to Rs.14.99, with volume increasing to 26,451 shares. The Sensex’s marginal 0.13% rise contrasted with the stock’s slight decline, signalling some consolidation amid mixed investor sentiment. The stock remained above its recent lows but showed signs of short-term weakness ahead of the midweek low.
Thursday, 12 February 2026: New 52-Week Low Amid Bearish Momentum
B N Rathi Securities fell sharply by 2.00% to Rs.14.69, marking a fresh 52-week low of Rs.14 during intraday trading. This decline came amid a broader market pullback, with the Sensex dropping 0.56%. The stock’s three-day losing streak culminated in a cumulative 2.97% fall, reflecting sustained bearish momentum. Financial results released earlier highlighted ongoing operational challenges, including a 49.87% decline in six-month PAT and negative operating cash flow of Rs.-22.63 crore, which likely weighed on investor confidence. The stock’s trading below all key moving averages further underscored the downtrend.
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Friday, 13 February 2026: Quarterly Turnaround Spurs Recovery
The stock rebounded strongly on Friday, gaining 3.00% to close at Rs.15.13, reversing the prior day’s losses despite the Sensex’s steep 1.40% decline. This surge followed the release of quarterly results showing a positive turnaround for the quarter ended December 2025. Net sales reached a record Rs.15.37 crores, with operating profit margin expanding to 13.01%. Profit After Tax surged to Rs.3.01 crores, and earnings per share rose to Rs.0.72. The company’s financial trend score improved markedly from -15 to +10, signalling a shift from contraction to growth. However, challenges remain, including a 25.11% decline in nine-month PAT and a high proportion of non-operating income in profits, which temper the optimism.
Weekly Price Performance: B N Rathi Securities vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.15.13 | +3.77% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.15.06 | -0.46% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.14.99 | -0.46% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.14.69 | -2.00% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.15.13 | +3.00% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: The week ended with a 3.77% gain for B N Rathi Securities, significantly outperforming the Sensex’s 0.54% decline. The company’s valuation metrics remain attractive, with a low P/E of 10.67 and P/BV of 0.83, suggesting value relative to peers. The quarterly results demonstrated a clear turnaround, with record net sales, improved operating margins, and a positive financial trend score, indicating operational improvements.
Cautionary Notes: Despite the quarterly rebound, the stock hit a 52-week low midweek, reflecting ongoing bearish momentum and investor concerns. The nine-month PAT contraction of 25.11% and the heavy reliance on non-operating income for profits highlight persistent challenges. Negative operating cash flow and the stock trading below key moving averages suggest that the recovery remains fragile. The Mojo Grade remains at ‘Sell’, signalling caution.
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Conclusion
B N Rathi Securities Ltd’s week was characterised by a volatile but ultimately positive price movement, with a 3.77% gain that outpaced the broader market’s decline. The stock’s valuation remains compelling, supported by a strong quarterly performance that signals a potential operational turnaround. However, the persistence of negative cash flows, reliance on non-operating income, and recent 52-week lows underscore ongoing risks. The company’s ‘Sell’ Mojo Grade reflects this cautious outlook. Investors should monitor upcoming results and market developments closely to assess whether the recent momentum can be sustained amid sector headwinds and company-specific challenges.
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