Current Market Context and Price Movement
On 9 December 2025, eMudhra’s stock price reached Rs.599.8, the lowest level recorded in the past year. This decline comes despite the stock outperforming its sector by 1.25% on the day, following a two-day period of consecutive falls. Notably, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained downward trend over multiple time frames.
Meanwhile, the broader market, represented by the Sensex, opened 359.82 points lower and was trading at 84,590.89, down 0.6%. The Sensex remains close to its 52-week high of 86,159.02, just 1.85% away, and is positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish market environment contrasting with eMudhra’s performance.
Performance Comparison Over the Past Year
Over the last twelve months, eMudhra’s stock has recorded a return of -30.54%, significantly underperforming the Sensex, which has shown a positive return of 3.79% during the same period. This divergence highlights the stock’s relative weakness within the broader market context. Additionally, the BSE500 index has generated a modest return of 0.17% over the year, further emphasising eMudhra’s underperformance compared to its peers and the market at large.
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Valuation and Profitability Metrics
eMudhra’s return on equity (ROE) stands at 11.7%, while the price-to-book value ratio is 6.2, indicating a valuation that is considered very expensive relative to book value. Despite this, the stock’s valuation aligns fairly with the average historical valuations of its peers within the sector.
Profitability has shown some positive trends, with profits rising by 17.4% over the past year. The company’s price/earnings to growth (PEG) ratio is 3.1, reflecting the relationship between its price-to-earnings ratio and earnings growth rate. These figures suggest that while earnings have expanded, the stock price has not reflected this growth proportionately.
Financial Health and Growth Indicators
eMudhra maintains a low average debt-to-equity ratio of zero, indicating minimal reliance on debt financing. The company has demonstrated healthy long-term growth, with net sales increasing at an annual rate of 44.36%. Quarterly results have been positive for 13 consecutive quarters, with the latest quarter reporting net sales of Rs.172.88 crores and a profit before depreciation, interest, and taxes (PBDIT) of Rs.41.26 crores. The operating profit to net sales ratio for the quarter reached 23.87%, marking the highest level recorded.
Institutional Holdings and Market Sentiment
Institutional investors hold a significant stake in eMudhra, accounting for 20.88% of the company’s shares. Their holdings have increased by 0.68% over the previous quarter, reflecting a steady interest from entities with substantial analytical resources. This level of institutional ownership is notable within the Computers - Software & Consulting sector.
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Technical Indicators and Trend Analysis
The stock’s position below all key moving averages suggests a prevailing bearish trend over short, medium, and long-term periods. The 52-week high for eMudhra was Rs.1,023.55, indicating a substantial decline from that peak to the current 52-week low of Rs.599.8. This price movement reflects a significant correction over the past year.
Despite the recent low, the stock showed a slight gain today after two days of declines, which may indicate some short-term price stabilisation. However, the overall trend remains subdued compared to the broader market’s positive momentum.
Sector and Industry Context
Operating within the Computers - Software & Consulting sector, eMudhra faces competitive pressures and valuation dynamics that are reflected in its current market performance. The sector itself has experienced mixed results, with some companies maintaining steady growth while others face valuation adjustments. eMudhra’s valuation metrics and sales growth rates position it as a company with notable sales expansion but facing challenges in translating this into sustained stock price appreciation.
Summary of Key Financials
To summarise, eMudhra’s key financial indicators include:
- Net sales quarterly high of Rs.172.88 crores
- Quarterly PBDIT peak at Rs.41.26 crores
- Operating profit to net sales ratio at 23.87%
- Return on equity at 11.7%
- Price to book value ratio of 6.2
- PEG ratio of 3.1
- Debt to equity ratio averaging zero
- Institutional holdings at 20.88%
These figures illustrate a company with solid sales growth and profitability metrics, yet one whose stock price has experienced a notable decline over the past year.
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