Key Events This Week
Feb 09: Upper circuit hit at Rs.13.80 amid strong buying momentum
Feb 10: Downgrade to Strong Sell by MarketsMOJO due to worsening fundamentals
Feb 11-13: Price stabilises at Rs.12.81 with no further gains
Feb 13: Week closes at Rs.12.81, down 7.17%
9 February: Upper Circuit Hit Amid Strong Buying Despite Weak Fundamentals
Eurotex Industries began the week on a surprisingly strong note, hitting its upper circuit price limit of Rs.13.80, a 4.94% gain from the previous close. This surge outpaced the Garments & Apparels sector’s 1.34% rise and the Sensex’s modest 0.40% advance, signalling a temporary resurgence in investor interest. The stock’s price action was characterised by a regulatory freeze on further upward movement, indicating demand exceeded supply significantly.
However, this price strength was not supported by volume, with only 0.0001 lakh shares traded and a turnover of Rs.1.38 lakh, reflecting the stock’s micro-cap status and limited liquidity. The company’s market capitalisation stood at a modest Rs.12.00 crore, and despite the short-term momentum, the overall sentiment remained cautious due to the company’s weak fundamentals and erratic trading history.
10 February: Downgrade to Strong Sell Highlights Deepening Challenges
The positive momentum was abruptly reversed on 10 February when MarketsMOJO downgraded Eurotex Industries from a 'Sell' to a 'Strong Sell' rating. This downgrade was driven by deteriorating technical indicators and persistent fundamental weaknesses. The company’s financial health remains fragile, with a negative book value signalling erosion of net asset value and a lack of sustainable earnings growth.
Eurotex reported a compound annual decline in net sales of -53.35% over the past five years, with operating profit stagnating at zero. The latest quarterly results revealed a steep 299.0% fall in PAT to a loss of Rs.1.03 crore and an EPS of Rs.-1.18. Despite a zero debt-to-equity ratio, the company’s operational performance remains weak, undermining investor confidence.
Technically, the stock’s momentum shifted to bearish, with weekly MACD and RSI indicators signalling downward pressure. The price closed at Rs.12.81, down 4.76% on the day, reflecting the market’s reaction to the downgrade and fundamental concerns.
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11 to 13 February: Price Stabilises Amid Market Weakness
Following the downgrade, Eurotex’s stock price stabilised at Rs.12.81 for three consecutive trading sessions, with no change in closing price from 11 to 13 February. Meanwhile, the Sensex declined by 0.56% on 12 February and 1.40% on 13 February, reflecting broader market weakness. Eurotex’s flat price action amid a falling market suggests a temporary floor, but the lack of upward momentum underscores persistent investor caution.
The company’s liquidity remained limited, and technical indicators continued to signal bearish trends. The absence of positive catalysts and ongoing fundamental challenges contributed to subdued trading activity and price stagnation.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.13.45 | -2.54% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.12.81 | -4.76% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.12.81 | +0.00% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.12.81 | +0.00% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.12.81 | +0.00% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: The upper circuit hit on 9 February demonstrated latent buying interest and short-term momentum, with the stock outperforming both its sector and the Sensex on that day. The slight upgrade from Strong Sell to Sell prior to the downgrade indicated some easing in negative sentiment.
Cautionary Signals: The downgrade to Strong Sell on 10 February reflected deepening fundamental and technical weaknesses. Negative book value, steep declines in sales and profits, and bearish technical indicators all point to heightened risks. The stock’s micro-cap status and limited liquidity exacerbate volatility and price unpredictability. The week’s overall 7.17% decline versus a 0.54% Sensex fall highlights significant underperformance.
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Conclusion
Eurotex Industries and Exports Ltd’s week was marked by a sharp reversal from initial optimism to pronounced weakness. The upper circuit hit on 9 February was overshadowed by a downgrade to Strong Sell the following day, reflecting deteriorating fundamentals and bearish technical signals. The stock’s 7.17% weekly decline starkly contrasts with the Sensex’s modest 0.54% fall, underscoring Eurotex’s vulnerability amid broader market conditions.
Investors should remain cautious given the company’s negative earnings trajectory, limited liquidity, and erratic trading patterns. While short-term buying interest surfaced briefly, the prevailing risks and lack of clear recovery catalysts suggest continued challenges ahead. Monitoring subsequent trading sessions will be essential to assess whether Eurotex can stabilise or if further declines are likely.
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