Recent Market Performance and Price Trends
The stock has been on a consistent decline over the past four trading sessions, losing 7.11% in returns during this period. On 24 Feb 2026, Dreamfolks Services Ltd closed with a day loss of 1.95%, underperforming the Sensex which fell by 0.91% on the same day. Over the last week, the stock declined by 6.95%, compared to a 1.10% drop in the Sensex. The one-month performance shows a sharper fall of 14.16%, while the Sensex gained 1.22% in the same timeframe.
More notably, the stock has plummeted 31.92% over the past three months, significantly underperforming the Sensex’s 2.79% decline. The year-to-date performance is also weak, with a 24.12% loss against the Sensex’s 3.15% fall. Over the last year, Dreamfolks Services Ltd has recorded a steep 68.69% decline, while the Sensex posted a robust 10.85% gain. The three-year performance is even more stark, with the stock down 80.66% compared to the Sensex’s 38.80% rise.
Currently, the stock trades below all major moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating a sustained bearish trend.
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Financial Results and Profitability Metrics
Dreamfolks Services Ltd reported very negative results in December 2025, with net sales falling sharply by 73.99%. The company has declared negative results for two consecutive quarters, signalling ongoing difficulties in revenue generation. The latest quarterly net sales stood at a low ₹53.45 crores, marking the lowest level recorded.
Profit after tax (PAT) for the quarter was a loss of ₹7.86 crores, representing a 148.6% decline compared to the previous four-quarter average. Return on capital employed (ROCE) for the half-year period is at a low 26.48%, reflecting subdued capital efficiency. Operating profit has contracted at an annualised rate of 17.86% over the past five years, underscoring the company’s struggles to sustain growth.
Long-Term Underperformance and Market Comparison
The stock’s performance has consistently lagged behind key benchmarks. Over the last three years, Dreamfolks Services Ltd has underperformed the BSE500 index in each annual period. The cumulative returns over five and ten years stand at 0.00%, contrasting sharply with the Sensex’s 62.53% and 257.46% gains respectively. This persistent underperformance highlights the company’s inability to keep pace with broader market growth.
Despite the challenging environment, the stock’s valuation metrics indicate a discount relative to peers. The company’s price-to-book value ratio is 1.3, which is considered very attractive given its return on equity (ROE) of 19.4%. This valuation discount reflects market caution amid the company’s recent financial setbacks.
Balance Sheet and Shareholding Structure
Dreamfolks Services Ltd maintains a low average debt-to-equity ratio of zero, indicating a debt-free capital structure. This conservative leverage position may provide some financial flexibility despite the current earnings pressure. The company also demonstrates high management efficiency, with a reported ROE of 28.30%, suggesting effective utilisation of shareholder funds.
The majority shareholding remains with promoters, maintaining concentrated ownership control.
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Mojo Score and Analyst Ratings
MarketsMOJO assigns Dreamfolks Services Ltd a Mojo Score of 36.0, categorising it with a Sell grade as of 3 Nov 2025. This represents a downgrade from the previous Hold rating, reflecting deteriorated fundamentals and market sentiment. The company’s market capitalisation grade stands at 4, indicating a relatively small market cap within its sector.
The downgrade aligns with the company’s recent financial results and sustained stock price weakness, reinforcing the cautious stance adopted by analysts.
Sector and Peer Context
Within the Transport Infrastructure sector, Dreamfolks Services Ltd’s performance contrasts with broader sector trends. While the stock’s recent daily performance is broadly in line with the sector, its longer-term returns and financial metrics lag behind peers. The company’s valuation discount relative to sector averages suggests market concerns about its growth prospects and earnings stability.
Despite these challenges, the company’s low leverage and strong ROE highlight areas of relative strength amid a difficult operating environment.
Summary of Key Metrics
To summarise, Dreamfolks Services Ltd’s stock has reached an all-time low, closing near ₹83.05, just 0.46% above its 52-week low. The stock has declined over 68% in the past year and over 80% in three years, underperforming the Sensex and BSE500 consistently. Financial results reveal a 74% drop in net sales and a significant loss in PAT, with two consecutive quarters of negative earnings. Operating profit has contracted annually by nearly 18% over five years. The company maintains a zero debt-to-equity ratio and a high ROE of 28.30%, but these strengths have not translated into positive market performance.
Overall, the data portrays a company facing considerable headwinds, reflected in its stock price and financial results, with a cautious market outlook as indicated by its recent downgrade to a Sell rating.
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