Crest Ventures Gains 2.83%: Mixed Technical Signals and Financial Challenges Shape the Week

29 December 2025: Rating Upgrade and Technical Momentum Shift

On 29 December, Crest Ventures experienced a significant rating upgrade by MarketsMOJO, moving from 'Strong Sell' to 'Sell'. This change was driven by improvements in technical indicators despite ongoing financial challenges. The stock closed at Rs.390.60, up 0.84% from the previous close, while the Sensex declined 0.41% to 37,140.23. The upgrade reflected a nuanced reassessment balancing weak financial results with stabilising technical signals.

Financially, Crest Ventures reported a 16.51% decline in net sales for Q2 FY 2025-26 and a 78.3% drop in profit after tax, marking the third consecutive quarter of negative earnings. Return on Capital Employed (ROCE) and Return on Equity (ROE) remained low at 5.61% and 4.1% respectively, underscoring weak profitability. Despite this, the company’s low Debt to EBITDA ratio of 0.87 times and strong long-term operating profit growth of 40.74% annualised suggested some underlying business strength.

Technically, the stock’s momentum shifted from mildly bearish to sideways, with mixed signals across key indicators. Weekly MACD was mildly bullish, while monthly MACD remained mildly bearish. RSI showed neutral weekly readings but bullish monthly trends. Bollinger Bands and KST oscillators presented similarly mixed signals, indicating a complex technical landscape.

30 December 2025: Technical Momentum Turns Mildly Bearish Despite Price Stability

On 30 December, Crest Ventures closed unchanged at Rs.390.60, maintaining the previous day’s price level. The Sensex also remained nearly flat, down 0.01% at 37,135.83. However, technical momentum shifted subtly from sideways to mildly bearish. Daily moving averages turned bearish, signalling weakening short-term price strength.

MACD indicators remained mixed, with weekly readings mildly bullish but monthly readings turning bearish. RSI stayed neutral on both weekly and monthly charts, indicating no strong momentum in either direction. Bollinger Bands showed bullish tendencies weekly but bearish monthly, reinforcing the mixed outlook. Other indicators such as KST and Dow Theory also reflected this divergence, with weekly bullishness offset by monthly caution.

This technical shift suggests a potential short-term consolidation or pullback, despite the stock’s stable price. The company’s Mojo Score remained at 30.0 with a 'Sell' grade, reflecting cautious sentiment amid ongoing financial and sector challenges.

31 December 2025 to 2 January 2026: Volatility and Strong Finish

The last three trading days of the week saw Crest Ventures navigate volatility with a sharp dip followed by a strong recovery. On 31 December, the stock declined 1.95% to Rs.383.00, underperforming the Sensex which gained 0.83%. The following day, 1 January, the stock remained flat at Rs.383.00 while the Sensex edged up 0.14%.

On 2 January, Crest Ventures rallied impressively, closing at Rs.398.30, a 3.99% gain on the day and the highest close of the week. This surge outpaced the Sensex’s 0.81% gain, signalling renewed buying interest and short-term momentum. The volume on this day was notably higher at 632 shares, indicating stronger participation.

This strong finish capped a week of mixed signals but overall modest gains, with the stock outperforming the benchmark index by 1.48% over the week. The rally on the final day may reflect technical accumulation and investor optimism following the earlier rating upgrade and stabilising technical indicators.

Key Takeaways

Positive Signals: The upgrade from 'Strong Sell' to 'Sell' reflects improving technical momentum and a potential stabilisation in price action. The stock’s strong finish on 2 January with a 3.99% gain and increased volume suggests renewed investor interest. Crest Ventures’ low debt levels and healthy long-term operating profit growth provide a foundation for cautious optimism.

Cautionary Factors: Financial performance remains weak with declining sales and profits, low ROCE and ROE, and a valuation that appears expensive relative to earnings. Technical indicators present mixed signals, with short-term bullishness offset by longer-term bearish trends. The stock’s recent underperformance relative to the Sensex and lack of institutional holdings underline ongoing risks.

Conclusion

Crest Ventures Ltd’s week was characterised by a delicate balance between stabilising technical momentum and persistent fundamental challenges. The MarketsMOJO rating upgrade to 'Sell' signals a modest improvement in outlook, driven primarily by technical factors rather than a turnaround in financial performance. The stock’s 2.83% weekly gain and outperformance of the Sensex by 1.48% reflect this cautious optimism.

Investors should remain attentive to upcoming quarterly results and monitor technical indicators closely, as the stock navigates a complex environment of mixed signals. While the strong finish on 2 January offers some encouragement, the underlying financial weaknesses and valuation concerns suggest that Crest Ventures is not yet positioned for a sustained recovery. A prudent approach is warranted as the stock consolidates amid sector uncertainties and broader market volatility.

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