Stock Price Movement and Market Context
On 28 Jan 2026, CP Capital Limited’s share price declined to Rs.92.85, the lowest level in the past year, underperforming its sector by 1.76% on the day. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downtrend. This contrasts with the broader market, where the Sensex rose by 0.46% to close at 82,237.92, edging closer to its 52-week high of 86,159.02, just 4.77% away.
While mega-cap stocks led the market rally, CP Capital’s performance remained subdued, with a one-year return of -69.04%, starkly lagging behind the Sensex’s positive 8.32% gain over the same period. The stock’s 52-week high was Rs.439, highlighting the extent of the decline from its peak.
Financial Performance and Profitability Metrics
CP Capital’s financial indicators reveal challenges in profitability and growth. The company’s average Return on Equity (ROE) stands at a modest 5.18%, indicating limited efficiency in generating profits from shareholders’ funds. This figure is notably low compared to industry standards and reflects constrained profitability.
Net sales have contracted at an annualised rate of -6.45% over the last five years, underscoring a lack of sustained top-line growth. Furthermore, the company has reported negative results for the last three consecutive quarters, signalling ongoing difficulties in maintaining positive earnings momentum.
Interest expenses have increased significantly, with the latest six-month figure at Rs.3.03 crores, growing by 41.59%. The operating profit to interest ratio for the quarter is at a low 7.61 times, suggesting tighter coverage of interest obligations. Despite this, the company maintains a relatively low debt-to-equity ratio of 0.14 times as of the half-year, which remains modest but is the highest recorded in recent periods.
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Long-Term and Recent Performance Trends
Over the past three years, CP Capital has consistently underperformed the BSE500 index, reflecting persistent challenges in both growth and returns. The stock’s negative 69.04% return over the last year is compounded by a 21.7% decline in profits during the same period, highlighting deteriorating earnings quality.
The company’s market capitalisation grade is rated at 4, indicating a relatively small market cap compared to larger peers. Its Mojo Score has recently been downgraded from Hold to Sell on 7 Apr 2025, with a current score of 31.0, reflecting concerns over its financial health and market performance.
Despite these headwinds, CP Capital’s average debt-to-equity ratio remains low at 0.04 times, which is a positive indicator of limited leverage. The stock also trades at a price-to-book value of 0.3, suggesting it is valued attractively relative to its book value, albeit reflecting market caution.
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Shareholding and Sector Overview
The majority shareholding in CP Capital Limited is held by promoters, maintaining control over strategic decisions. The company operates within the Other Consumer Services sector, which has seen mixed performance relative to broader market indices.
While the Sensex and mega-cap stocks have shown resilience and gains recently, CP Capital’s stock continues to face downward pressure, reflecting sector-specific and company-specific factors that have weighed on investor confidence.
Summary of Key Metrics
To summarise, CP Capital Limited’s stock has reached a new 52-week low of Rs.92.85, reflecting a sustained decline over the past year and recent months. The company’s financial metrics point to subdued profitability, declining sales, and increased interest expenses, despite maintaining low leverage. The stock’s valuation metrics indicate a discount relative to book value, but this is accompanied by a Sell grade and a low Mojo Score, underscoring ongoing concerns.
These factors collectively explain the stock’s current price level and its underperformance relative to sector peers and benchmark indices.
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