Calcom Vision Ltd Falls 9.82%: Downgrade and Valuation Shifts Drive Volatility

16 February: Downgrade to Sell Amid Financial and Technical Setbacks

On 16 February 2026, Calcom Vision Ltd’s stock opened the week under pressure, closing at ₹89.60, down 4.83% from the previous Friday’s close of ₹94.15. This sharp decline coincided with MarketsMOJO’s downgrade of the company’s investment rating from Hold to Sell, reflecting a comprehensive reassessment of its financial and technical outlook.

The downgrade was driven primarily by a marked deterioration in the company’s financial trend, highlighted by a quarterly PAT loss of ₹0.95 crore for the quarter ended December 2025, representing a 165.6% fall compared to the previous four-quarter average. Operating profit metrics also weakened, with PBDIT dropping to ₹1.91 crore and operating profit to interest coverage ratio falling to a precarious 1.06 times.

Despite a robust 33.59% growth in net sales over the last six months to ₹105.19 crore and a half-year ROCE of 9.53%, these positives were overshadowed by profitability erosion and margin pressures. The company’s valuation remained attractive, with a PE ratio of 48.43 and EV/EBITDA of 13.09, but this was insufficient to offset the negative earnings trend and technical signals.

Technically, the stock showed weakness with bearish weekly MACD and Bollinger Bands, alongside a sideways momentum outlook. The stock’s price action reflected these concerns, falling nearly 5% on the downgrade day itself.

17 February: Valuation Grade Adjusts Amid Market Sentiment Shift

The following day, 17 February, the stock continued its downward trajectory, closing at ₹85.15, down 4.97% on the day. This movement aligned with a recalibration of Calcom Vision’s valuation grade from very attractive to attractive, signalling a narrowing margin of safety despite the stock’s still reasonable pricing relative to peers.

Calcom Vision’s PE ratio adjusted to 47.27, while the price-to-book value stood at 1.50, indicating a modest premium to book value consistent with sector norms. The EV/EBITDA ratio was 12.87, comparatively lower than peers such as Virtuoso Optoelectronics (24.19) and IKIO Technologies (18.97), suggesting relative valuation appeal within the Electronics & Appliances sector.

However, return metrics remained subdued, with ROCE at 8.44% and ROE at 6.76%, and a PEG ratio of 8.15 indicating that earnings growth expectations were priced at a premium. The stock’s year-to-date decline of 23.58% further underscored the challenging environment, contrasting with a 2.28% drop in the Sensex.

Market capitalisation remained mid-sized with a grade of 4, and the stock’s 52-week trading range of ₹71.55 to ₹147.50 highlighted significant volatility. The downgrade to Sell and valuation shifts reflected evolving investor caution amid these mixed fundamentals.

18-20 February: Price Stabilisation Amid Market Volatility

On 18 February, Calcom Vision’s stock price declined further to ₹82.45, down 3.17% on the day, even as the Sensex gained 0.43%. The stock’s volume was moderate at 19,759 shares, indicating some investor hesitation. The continued price weakness reflected ongoing concerns about the company’s earnings and technical outlook.

On 19 February, the stock saw a slight recovery, closing at ₹83.00, up 0.67%, despite a sharp 1.45% decline in the Sensex. This modest rebound was accompanied by low volume of 4,244 shares, suggesting limited conviction behind the move.

By 20 February, Calcom Vision closed at ₹84.90, gaining 2.29% on the day, while the Sensex rose 0.41%. The week ended with the stock down 9.82% overall, significantly underperforming the benchmark index. The low trading volume of 2,616 shares on the final day reflected subdued market interest amid the ongoing uncertainty.

Key Takeaways from the Week

Negative Financial and Technical Signals: The downgrade to Sell was prompted by a sharp deterioration in profitability, with a quarterly PAT loss of ₹0.95 crore and weakening operating margins. Technical indicators also signalled bearish momentum and sideways trends, contributing to the stock’s underperformance.

Valuation Dynamics: Despite the downgrade, Calcom Vision’s valuation remains relatively attractive compared to peers, with a PE ratio of 47.27 and EV/EBITDA of 12.87. However, the shift from very attractive to attractive valuation grade indicates a reduced margin of safety amid elevated PEG and moderate returns.

Price Underperformance: The stock declined 9.82% over the week, significantly lagging the Sensex’s 0.39% gain. This underperformance reflects investor caution amid mixed fundamentals and technical weakness.

Volume and Volatility: Trading volumes fluctuated, with a peak of 49,718 shares on 17 February and a low of 2,616 shares on 20 February, indicating varying investor interest and ongoing volatility in the stock.

Conclusion: A Week Marked by Caution and Reassessment

Calcom Vision Ltd’s week was dominated by a significant downgrade and valuation reassessment that together shaped a cautious market stance. The company’s deteriorating financial performance and mixed technical signals have weighed heavily on the stock price, resulting in a near 10% weekly decline. While valuation metrics remain comparatively attractive within the sector, the narrowing margin of safety and ongoing earnings challenges suggest that investors should approach the stock with prudence.

The divergence between Calcom Vision’s price movement and the broader Sensex gains further emphasises the stock-specific risks currently at play. As the company navigates these headwinds, market participants will likely monitor upcoming financial results and technical developments closely to gauge any potential shifts in momentum.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today