Stock Performance and Market Context
On 27 Feb 2026, Dreamfolks Services Ltd’s share price fell by 0.82%, underperforming the Sensex’s decline of 0.39% and the Transport Infrastructure sector by 0.33%. 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 bearish momentum.
Over various time frames, the stock’s performance has been notably weak. It has declined by 3.94% over the past week versus a 1.07% drop in the Sensex, and by 11.34% over the last month compared to a marginal 0.08% gain in the benchmark index. The three-month performance shows a steep fall of 31.74%, significantly worse than the Sensex’s 4.43% decline.
Longer-term figures are even more striking. Dreamfolks Services Ltd has lost 68.34% in value over the past year, while the Sensex gained 9.80%. Year-to-date, the stock is down 24.83%, compared to a 3.86% fall in the Sensex. Over three years, the stock has plummeted 80.57%, in stark contrast to the Sensex’s 38.18% rise. The five- and ten-year returns stand at zero, while the Sensex has delivered 66.86% and 253.83% gains respectively over these periods.
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Financial Results and Profitability Trends
The company’s recent quarterly results have been notably weak. Net sales for the quarter stood at Rs.53.45 crores, the lowest recorded figure, representing a sharp decline of 73.99%. This significant contraction in revenue has contributed to a net loss after tax (PAT) of Rs.7.86 crores, a fall of 148.6% compared to the previous four-quarter average.
Return on Capital Employed (ROCE) for the half-year period has dropped to a low of 26.48%, indicating reduced efficiency in generating profits from capital investments. Despite these declines, the company maintains a high Return on Equity (ROE) of 28.30%, reflecting strong management efficiency in utilising shareholder funds.
Operating profit has contracted at an annualised rate of -17.86% over the last five years, underscoring the company’s challenges in sustaining growth. The negative results have persisted for two consecutive quarters, signalling a continuation of the downward trend in financial performance.
Valuation and Market Sentiment
Dreamfolks Services Ltd currently holds a Mojo Score of 36.0 and has been downgraded from a Hold to a Sell rating as of 3 Nov 2025. The Market Capitalisation Grade stands at 4, reflecting a relatively modest market cap within its sector. The stock trades at a Price to Book Value ratio of 1.3, which is considered very attractive and below the average historical valuations of its peers.
Despite the valuation discount, the stock’s returns have been disappointing. Over the past year, profits have declined by 42.2%, while the stock price has fallen by 68.34%. This divergence highlights the market’s cautious stance amid the company’s deteriorating financials and subdued growth prospects.
The company’s debt profile remains conservative, with an average Debt to Equity ratio of zero, indicating no reliance on borrowed funds. Majority ownership rests with promoters, maintaining stable control over corporate governance.
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Comparative Performance and Sector Analysis
When benchmarked against the BSE500 and the broader Sensex, Dreamfolks Services Ltd has consistently underperformed. The stock has delivered negative returns in each of the last three annual periods, while the BSE500 and Sensex have posted positive gains. This persistent underperformance highlights the challenges faced by the company within the Transport Infrastructure sector, which itself has shown more resilience.
The sector’s relative strength contrasts with the company’s declining market capitalisation and subdued investor sentiment. The stock’s inability to keep pace with sectoral and market indices over multiple time horizons emphasises the severity of its current position.
Despite the difficulties, the company’s low leverage and high ROE suggest operational discipline and efficient capital management. However, these factors have not translated into positive stock price momentum or improved profitability in recent quarters.
Summary of Key Metrics
To encapsulate, Dreamfolks Services Ltd’s key financial and market metrics as of 27 Feb 2026 are:
- All-time low share price: Rs.80.62
- Day change: -0.82%
- 1-year stock return: -68.34%
- 5-year operating profit CAGR: -17.86%
- Quarterly net sales: Rs.53.45 crores (lowest)
- Quarterly PAT: Rs.-7.86 crores (down 148.6%)
- ROCE (half-year): 26.48%
- ROE: 28.30%
- Debt to Equity ratio: 0
- Price to Book Value: 1.3
- Mojo Score: 36.0 (Sell rating since 3 Nov 2025)
These figures collectively illustrate the company’s current market standing and financial health, underscoring the challenges it faces in reversing its downward trajectory.
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