Dreamfolks Services Ltd Stock Falls to 52-Week Low of Rs.88.45

Stock Performance and Market Context

On 2 Feb 2026, Dreamfolks Services Ltd’s share price touched an intraday low of Rs.88.45, representing a 3.0% drop on the day and a 2.69% decline compared to the previous close. This new low also marks the stock’s all-time lowest price level. The stock has been on a downward trajectory for two consecutive sessions, cumulatively falling by 3.6% during this period. Notably, the stock underperformed its sector by 1.05% on the same day.

Technical indicators reveal that Dreamfolks Services Ltd is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex recovered sharply after a negative opening, closing 0.68% higher at 81,272.90. Despite the Sensex trading below its 50-day moving average, the 50DMA remains above the 200DMA, reflecting a cautiously optimistic market environment led by mega-cap stocks.

Over the past year, Dreamfolks Services Ltd has delivered a return of -76.99%, significantly underperforming the Sensex, which posted a 4.86% gain over the same period. The stock’s 52-week high was Rs.389.40, underscoring the steep decline experienced in recent months.

Financial Performance Highlights

Recent quarterly results have reflected a downturn in key financial metrics. Net sales for the quarter stood at Rs.205.52 crore, a decline of 37.7% compared to the average of the previous four quarters. Profit before tax excluding other income (PBT less OI) dropped by 48.9% to Rs.10.92 crore, while profit after tax (PAT) decreased by 35.4% to Rs.11.23 crore over the same comparative period.

These figures indicate a contraction in revenue and profitability, contributing to the stock’s subdued performance. Over the past year, profits have declined by 9.5%, further underscoring the challenges faced by the company in maintaining earnings growth.

Long-Term Performance and Valuation Metrics

Dreamfolks Services Ltd has underperformed not only in the recent year but also over longer time horizons. The stock has lagged behind the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in delivering shareholder returns.

Despite the price decline, the company maintains a low average debt-to-equity ratio of zero, indicating a debt-free capital structure. Return on equity (ROE) remains relatively strong at 19.4%, and the stock trades at a price-to-book value of 1.4, suggesting an attractive valuation relative to its book value. Compared to peers, Dreamfolks Services Ltd is trading at a discount to historical average valuations, which may reflect market caution given recent financial trends.

Shareholding and Market Sentiment

The majority shareholding remains with the promoters, who continue to hold a controlling stake in the company. This stable ownership structure provides continuity in management but has not prevented the stock’s recent decline.

Summary of Key Metrics and Ratings

As of 3 Nov 2025, Dreamfolks Services Ltd’s Mojo Grade was downgraded from Hold to Sell, reflecting the deteriorating financial and price performance. The company’s Mojo Score stands at 31.0, indicating a cautious stance based on quantitative and qualitative factors. The market capitalisation grade is 4, suggesting a mid-cap status with moderate liquidity and market presence.

Overall, the stock’s recent price action, combined with declining sales and profits, has contributed to its fall to the 52-week low. While valuation metrics remain reasonable, the sustained negative returns over multiple periods highlight the challenges faced by Dreamfolks Services Ltd in regaining upward momentum.

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