Stock Price Movement and Market Context
Trading at Rs.35.45, Epic Energy Ltd’s share price is substantially below its 52-week high of Rs.84, representing a decline of nearly 58%. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. Today’s decline of 0.81% was in line with sector performance, as the NBFC sector continues to face headwinds.
The broader market environment has also been challenging. The Sensex opened 385.82 points lower and closed down 430.97 points at 81,363.68, a 0.99% drop. This marks the third consecutive week of losses for the Sensex, which has declined 5.13% over this period. The index is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some longer-term support.
Financial Performance and Valuation Metrics
Epic Energy Ltd’s financial metrics continue to reflect underlying weaknesses. The company’s long-term return on equity (ROE) averages 4.84%, which is modest for the NBFC sector. Operating profit has grown at an annual rate of 19.53% over the past five years, indicating some growth but not at a pace sufficient to offset valuation concerns.
Debt servicing capacity remains a concern, with an average EBIT to interest coverage ratio of just 0.08, highlighting limited earnings buffer to meet interest obligations. Despite this, the company reported flat results in the September 2025 quarter, showing no significant improvement in profitability.
Valuation metrics further illustrate the stock’s position. The company’s ROE for the latest period stands at 13.8%, yet it carries a high price-to-book (P/B) ratio of 3.3, suggesting a very expensive valuation relative to its book value. However, the stock is trading at a discount compared to its peers’ average historical valuations, which may reflect market scepticism about its growth prospects.
Performance Relative to Market and Peers
Over the last year, Epic Energy Ltd has underperformed significantly, delivering a negative return of 47.83%, while the Sensex gained 7.29% and the broader BSE500 index rose 5.48%. This divergence underscores the stock’s challenges in keeping pace with the market and sector peers.
Interestingly, despite the stock’s price decline, the company’s profits have increased by 41% over the same period, resulting in a price/earnings to growth (PEG) ratio of 0.4. This indicates that earnings growth has not translated into share price appreciation, possibly due to concerns over sustainability and financial health.
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Shareholding and Sectoral Position
The majority of Epic Energy Ltd’s shares are held by non-institutional investors, which may contribute to higher volatility and less stable trading patterns. The company operates within the NBFC sector, which has faced increased scrutiny and pressure in recent months due to tightening credit conditions and regulatory changes.
Epic Energy’s Mojo Score currently stands at 16.0, with a Mojo Grade of Strong Sell, upgraded from a previous Sell rating on 8 July 2025. The Market Cap Grade is 4, reflecting its micro-cap status and associated risks.
Technical and Trend Analysis
The stock’s technical indicators remain weak. Trading below all major moving averages suggests a lack of upward momentum. The four-day consecutive decline and cumulative 5.63% loss over this period reinforce the downward trend. This technical weakness is compounded by the broader market’s negative sentiment, as reflected in the Sensex’s recent performance.
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Summary of Key Metrics
To summarise, Epic Energy Ltd’s stock has reached a new 52-week low of Rs.35.45, reflecting a significant decline from its peak of Rs.84. The company’s financial indicators reveal modest profitability and growth, with an average ROE of 4.84% and operating profit growth of 19.53% annually over five years. Debt servicing capacity remains limited, with an EBIT to interest ratio of 0.08. Despite a recent profit increase of 41%, the stock price has not responded positively, resulting in a PEG ratio of 0.4.
The stock’s technical position is weak, trading below all major moving averages and experiencing a four-day losing streak. Market conditions have also been unfavourable, with the Sensex declining nearly 1% today and over 5% in the last three weeks. Epic Energy Ltd’s Mojo Grade of Strong Sell and low Mojo Score of 16.0 reflect these challenges.
Conclusion
Epic Energy Ltd’s fall to its 52-week low is a reflection of both company-specific factors and broader market pressures. The stock’s valuation, financial metrics, and technical indicators all point to a cautious environment. While the company has demonstrated some profit growth, the overall market sentiment and sectoral headwinds have weighed heavily on its share price.
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