Intraday and Recent Price Movements
On the trading day, Digidrive Distributors Ltd’s stock touched an intraday low of Rs. 20.11, representing a sharp fall of 9.74%. This decline notably outpaced the Sensex, which recorded a modest gain of 0.11% on the same day. The stock also underperformed its sector by 10.72%, highlighting its relative weakness within the E-Retail/E-Commerce space.
Further technical indicators reveal that the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum.
Performance Trends Over Multiple Timeframes
Examining the stock’s performance over various periods underscores the severity of its decline. Over the past week, the stock has lost 11.80%, while the one-month performance shows a steep fall of 23.51%. The three-month return stands at -28.94%, contrasting sharply with the Sensex’s positive 0.44% gain over the same period.
Longer-term figures are equally concerning. Over the last year, Digidrive Distributors Ltd has delivered a negative return of 45.78%, whereas the Sensex appreciated by 6.68%. Year-to-date performance also reflects a 23.36% loss against the Sensex’s 1.63% decline. Notably, the stock has not recorded any gains over the past three, five, and ten years, with returns flat at 0.00%, while the Sensex has surged by 37.78%, 65.62%, and 244.43% respectively.
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Financial Metrics and Profitability Analysis
Digidrive Distributors Ltd’s financial indicators reflect a challenging profitability landscape. The company’s average Return on Equity (ROE) stands at a modest 2.19%, indicating limited profitability generated per unit of shareholders’ funds. This low ROE is a key factor contributing to the stock’s current rating and market sentiment.
Despite the subdued profitability, the company has demonstrated some positive growth trends in its operating profit and sales. Operating profit has expanded at an annualised rate of 86.57%, signalling healthy growth in core earnings before tax and interest. Additionally, the Profit After Tax (PAT) for the nine-month period reached Rs. 6.73 crores, reflecting a growth rate of 20.39% compared to previous periods.
Quarterly net sales have also shown improvement, with the latest quarter recording Rs. 15.15 crores, a 33.2% increase relative to the average of the preceding four quarters. These figures suggest that while the company is growing its top line and operating profit, this has not yet translated into commensurate returns for shareholders.
Capital Structure and Shareholding
The company maintains a conservative capital structure, with an average Debt to Equity ratio of zero, indicating no reliance on debt financing. This low leverage reduces financial risk but also limits potential benefits from debt-driven growth strategies.
Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction and governance.
Rating and Market Position
MarketsMOJO assigns Digidrive Distributors Ltd a Mojo Score of 37.0, categorising it with a Sell grade as of 23 Sep 2025. This represents an upgrade from a previous Strong Sell rating, reflecting some improvement in certain parameters, though the overall outlook remains cautious. The company holds a Market Cap Grade of 4, indicating its micro-cap status within the E-Retail/E-Commerce sector.
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Sector and Market Context
Within the broader E-Retail and E-Commerce sector, Digidrive Distributors Ltd’s performance contrasts with more resilient peers and benchmark indices. The sector has generally shown mixed results, but the company’s consistent underperformance relative to the BSE500 and Sensex indices over multiple timeframes highlights its relative weakness.
The stock’s inability to generate positive returns over three, five, and ten years, while the Sensex has delivered substantial gains, emphasises the challenges faced in creating shareholder value.
Summary of Key Challenges
While the company has demonstrated growth in operating profit and sales, the low ROE and persistent negative returns over recent years underscore the difficulties in translating growth into sustainable profitability. The stock’s trading below all major moving averages and its recent all-time low price reflect these ongoing pressures.
Moreover, the stock’s significant underperformance relative to the Sensex and sector benchmarks over short and long-term periods indicates a cautious market stance.
Conclusion
Digidrive Distributors Ltd’s fall to an all-time low of Rs. 20.11 marks a notable event in its market journey, reflecting a combination of subdued profitability metrics and extended periods of underperformance. The company’s financial data presents a mixed picture of growth in operating profit and sales alongside limited returns to shareholders. This complex scenario is mirrored in its current market valuation and rating status.
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