Stock Performance and Market Context
On the day the new low was recorded, Brady & Morris’s share price fell by 3.80%, underperforming the automobile sector by 3.17%. The stock exhibited high volatility, with an intraday price range between Rs.721.1 and Rs.799, representing a 5.12% weighted average price volatility. This decline extends a two-day losing streak, during which the stock has lost 6.86% cumulatively.
The stock is 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 recovered from an early negative opening to close 0.33% higher at 81,808.21 points, supported by gains in mega-cap stocks and the S&P Bse Metal index hitting a 52-week high.
Financial Performance and Recent Results
Brady & Morris Engineering Company Ltd has reported a series of disappointing quarterly results, contributing to the stock’s decline. The company’s net sales for the most recent quarter stood at Rs.12.99 crores, down 42.0% compared to the average of the previous four quarters. Profit before tax excluding other income (PBT less OI) plummeted by 99.5% to Rs.0.01 crore, while net profit after tax (PAT) declined by 71.6% to Rs.0.48 crore over the same period.
These figures follow a pattern of negative results for three consecutive quarters, with the September 2025 quarter marking a particularly sharp 34.53% fall in net sales. Over the past year, the company’s profits have contracted by 49.7%, while the stock price has fallen by 39.31%, significantly underperforming the Sensex’s 8.61% gain during the same period.
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Valuation and Market Sentiment
The company’s Mojo Score currently stands at 33.0, with a Mojo Grade of Sell, downgraded from Hold on 26 Aug 2025. This reflects concerns over Brady & Morris’s long-term growth prospects and recent financial performance. The market capitalisation grade is rated 4, indicating a relatively modest market cap within its sector.
Despite the negative trend, Brady & Morris maintains a Price to Book Value ratio of 3.4, which is attractive relative to its peers’ historical valuations. The company’s return on equity (ROE) remains robust at 32.29%, signalling efficient management of shareholder funds. Additionally, the firm’s debt servicing capability is strong, with a low Debt to EBITDA ratio of 1.11 times, suggesting manageable leverage levels.
Industry and Sector Comparison
Within the automobile sector, Brady & Morris’s performance contrasts with broader market trends. While the BSE500 index has generated returns of 8.76% over the past year, Brady & Morris has lagged significantly. The sector itself has seen pockets of strength, with some indices reaching new highs, underscoring the company’s relative underperformance.
The stock’s 52-week high was Rs.2,018, highlighting the extent of the recent decline. This steep drop has been influenced by the company’s shrinking sales and profits, as well as market sentiment shifting away from stocks with weaker financial momentum.
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Shareholding and Corporate Structure
The majority shareholding in Brady & Morris Engineering Company Ltd remains with the promoters, indicating a concentrated ownership structure. This can influence strategic decisions and the company’s approach to navigating current challenges.
While the company’s financial metrics show areas of strength, such as management efficiency and debt servicing, the recent declines in sales and profitability have weighed heavily on the stock price, culminating in the new 52-week low.
Summary of Key Metrics
To summarise, Brady & Morris Engineering Company Ltd’s stock has reached Rs.721.1, its lowest level in the past year, reflecting a 39.31% decline over 12 months. The company’s quarterly net sales and profits have fallen sharply, with three consecutive quarters of negative results. Despite a strong ROE of 32.29% and manageable debt levels, the stock’s valuation and market performance have deteriorated, leading to a downgrade to a Sell rating by MarketsMOJO as of August 2025.
The stock’s underperformance relative to the Sensex and its sector highlights the challenges faced by Brady & Morris in maintaining growth and profitability amid a competitive automobile industry landscape.
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