CP Capital Limited Falls to 52-Week Low of Rs.90.5 Amidst Continued Underperformance

Stock Price Movement and Market Context

On 25 Feb 2026, CP Capital Limited’s shares opened with a gap up of 2.07%, reaching an intraday high of Rs.93, a 2.09% increase from the previous close. However, despite this early strength, the stock ultimately declined to close at Rs.90.5, its lowest level in the past 52 weeks. This represents a day change of -1.21%, aligning with the sector’s overall performance.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. In contrast, the broader market, represented by the Sensex, opened higher at 82,530.12 points with a gain of 304.20 points (0.37%) but was trading marginally lower at 82,230.19 points (0.01%) during the day. The Sensex remains 4.78% below its 52-week high of 86,159.02, with mega-cap stocks leading the market.

Long-Term Price Performance

Over the last year, CP Capital Limited’s stock has delivered a return of -73.76%, significantly underperforming the Sensex, which posted a positive return of 10.23% over the same period. The stock’s 52-week high was Rs.439, highlighting the steep decline to the current low. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the past three years, one year, and three months.

Financial Metrics and Profitability Analysis

CP Capital Limited’s financial indicators reflect subdued profitability and growth. The company’s average Return on Equity (ROE) stands at 5.18%, indicating limited efficiency in generating profits from shareholders’ funds. This low ROE is a key factor contributing to the stock’s current rating downgrade from Hold to Sell, effective 7 Apr 2025, as per the MarketsMOJO grading system. The company’s Mojo Score is 45.0, reinforcing the Sell rating.

Net sales have declined at an annual rate of -0.33% over the past five years, signalling stagnation in revenue growth. The latest half-year financials reveal an increase in interest expenses to Rs.3.99 crores, growing by 84.72%, while the operating profit to interest ratio for the quarter is at a low 7.49 times. The debt-equity ratio has risen to 0.14 times in the half-year period, the highest recorded for the company, though the average debt-equity ratio remains low at 0.04 times.

Valuation and Shareholding Structure

Despite the challenges, CP Capital Limited’s valuation metrics indicate a very attractive price-to-book value of 0.3, with a ROE of 6.9% noted in recent assessments. The stock is trading at a discount relative to its peers’ historical valuations. The company’s PEG ratio stands at 3.9, reflecting the relationship between its price-to-earnings ratio and earnings growth rate, which remains modest given the flat profit growth of 0.8% over the past year.

Promoters remain the majority shareholders, maintaining control over the company’s strategic direction.

Summary of Performance Trends

CP Capital Limited’s stock has experienced a sustained decline over the past year, with a 73.76% loss in value. This contrasts sharply with the broader market’s positive returns and reflects the company’s challenges in generating consistent growth and profitability. The stock’s position below all major moving averages further underscores the prevailing bearish sentiment.

While the company maintains a low average debt level, the recent increase in interest expenses and debt-equity ratio suggests a cautious approach to leverage. The flat profit growth and low operating profit coverage of interest expenses highlight the financial pressures faced by the company.

Overall, CP Capital Limited’s current valuation metrics indicate a discounted price relative to its peers, but the underlying financial performance and market trends have contributed to the stock’s fall to its 52-week low of Rs.90.5.

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