Stock Price Movement and Market Context
On 18 Feb 2026, Danlaw Technologies India Ltd recorded its lowest price in the last 52 weeks at Rs.620.5. Despite this, the stock managed to outperform its sector by 1.94% on the day, showing a modest recovery after six consecutive days of decline. However, the broader trend remains subdued as the stock trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In comparison, the Sensex opened positively with a gain of 102.63 points but reversed to close 154.60 points lower at 83,398.99, down 0.06%. The Sensex remains close to its 52-week high of 86,159.02, just 3.31% away, highlighting the divergence between the broader market’s relative strength and Danlaw Technologies’ performance.
Financial Performance and Profitability Trends
Danlaw Technologies reported flat results for the quarter ending December 2025, with a Profit After Tax (PAT) of Rs.4.48 crores, representing a decline of 9.9% compared to the previous four-quarter average. This contraction in quarterly profitability has contributed to the stock’s subdued performance over the past year.
Over the last twelve months, the company’s stock price has fallen by 45.31%, a stark contrast to the Sensex’s positive return of 9.78% and the BSE500’s 13.84% gain. Despite this, the company’s profits have shown a modest increase of 5% over the same period, indicating some resilience in earnings amid price weakness.
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Valuation and Efficiency Metrics
Danlaw Technologies maintains a high level of management efficiency, reflected in a Return on Capital Employed (ROCE) of 24.58%, which is a robust indicator of the company’s ability to generate profits from its capital base. The Return on Equity (ROE) stands at 23.3%, further underscoring effective utilisation of shareholder funds.
The company’s debt servicing capacity is strong, with a low Debt to EBITDA ratio of 0.30 times, indicating limited leverage and manageable financial risk. This conservative capital structure supports operational stability despite the stock’s price volatility.
Net sales have exhibited healthy long-term growth, expanding at an annual rate of 55.95%, while operating profit has grown at 49.51% annually. These figures suggest that the company’s core business remains on a growth trajectory, even as market sentiment has weighed on the stock price.
Valuation Considerations
The stock currently trades at a Price to Book Value of 3.6, which is considered attractive relative to its peers’ historical valuations. However, the Price/Earnings to Growth (PEG) ratio of 3.1 indicates that the stock’s price decline has not fully aligned with its earnings growth, suggesting a valuation discount in the market.
Despite the negative price performance, the company’s fundamentals present a mixed picture, with solid profitability and growth metrics contrasting with the stock’s downward trend.
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Shareholding and Market Grade
The majority shareholding of Danlaw Technologies India Ltd remains with the promoters, providing a stable ownership structure. The company’s current Mojo Score stands at 44.0, with a Mojo Grade of Sell, downgraded from Hold on 13 Feb 2026. This reflects a cautious stance based on recent performance and valuation metrics.
The Market Capitalisation Grade is rated 4, indicating a mid-cap status within the industrial manufacturing sector. The stock’s day change was a marginal positive 0.09%, though this is within the context of a longer-term downtrend.
Comparative Sector and Market Performance
Within the industrial manufacturing sector, Danlaw Technologies has underperformed relative to peers and the broader market indices. While the BSE500 index has delivered returns of 13.84% over the past year, Danlaw’s stock has declined by 45.31%. This divergence highlights the challenges faced by the company in maintaining investor confidence despite underlying business growth.
The Sensex’s current position below its 50-day moving average, yet above its 200-day moving average, suggests a mixed market environment. Danlaw’s trading below all major moving averages further emphasises its relative weakness.
Summary of Key Price Levels
The stock’s 52-week high was Rs.1,299.95, nearly double the current price, illustrating the extent of the decline over the past year. The new 52-week low of Rs.620.5 marks a significant technical level that investors and analysts will monitor closely.
Overall, Danlaw Technologies India Ltd’s stock performance reflects a combination of subdued quarterly earnings, market underperformance, and valuation adjustments. While the company’s financial metrics indicate operational strength and growth potential, the stock price has yet to reflect these fundamentals in the current market environment.
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