Recent Price Movement and Market Context
The stock opened today with a gap down of 2.4%, continuing its downward trajectory to touch an intraday low of Rs.95.25. This represents a 1.61% decline on the day and a 3.51% loss over the past two consecutive sessions. The stock has underperformed its sector by 3.2% today, reflecting persistent weakness relative to its peers.
Exicom Tele-Systems Ltd is currently trading below all key 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 start, gaining 451.29 points to trade at 81,006.97, a 0.35% increase. The Sensex remains below its 50-day moving average but benefits from mega-cap leadership, highlighting the divergence between Exicom’s performance and the broader market trend.
Long-Term Price Performance
Over the past year, Exicom Tele-Systems Ltd has delivered a return of -60.09%, significantly underperforming the Sensex, which posted a 4.46% gain over the same period. The stock’s 52-week high was Rs.253.95, underscoring the steep decline it has experienced. This prolonged downtrend has also been reflected in the company’s underperformance against the BSE500 index over one year, three years, and three months, indicating challenges in both near-term and long-term price appreciation.
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Financial Performance and Fundamental Concerns
Exicom Tele-Systems Ltd’s financial metrics reveal ongoing difficulties. The company has reported operating losses, contributing to a weak long-term fundamental strength assessment. Operating profit growth has been modest, at an annual rate of 8.40% over the last five years, which is below expectations for sustained expansion in the Heavy Electrical Equipment sector.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of -1.00 times, indicating that earnings before interest, taxes, depreciation, and amortisation are insufficient to cover debt obligations. This financial strain is further evidenced by the company’s negative EBITDA, which adds to the risk profile of the stock.
Recent Quarterly Results
The company has declared negative results for five consecutive quarters. Interest expenses for the nine months ended have risen sharply by 54.50% to Rs.43.77 crores. Profit before tax excluding other income for the latest quarter stood at a loss of Rs.73.01 crores, a decline of 25.7% compared to the average of the previous four quarters. Net profit after tax for the quarter was also negative at Rs.66.65 crores, down 33.7% versus the prior four-quarter average.
Valuation and Risk Assessment
The stock is trading at valuations that are considered risky relative to its historical averages. Over the past year, profits have fallen by 68%, compounding the negative return of 60.09% generated by the stock. This deterioration in profitability and valuation metrics has contributed to the company’s current Mojo Grade of Strong Sell, upgraded from Sell on 26 May 2025, reflecting heightened caution among market analysts.
Institutional Investor Activity
Institutional investors have reduced their holdings by 0.66% in the previous quarter, now collectively holding 3.75% of the company’s shares. This decline in institutional participation may reflect concerns about the company’s financial health and growth prospects, given the superior analytical resources available to these investors.
Sector and Market Comparison
Within the Heavy Electrical Equipment sector, Exicom Tele-Systems Ltd’s performance has lagged behind peers and broader market indices. While the Sensex and mega-cap stocks have shown resilience and gains, Exicom’s stock has continued to trend lower, highlighting the divergence in investor sentiment and company fundamentals.
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Summary of Key Metrics
To summarise, Exicom Tele-Systems Ltd’s stock has reached a new low of Rs.95.25, reflecting a year-long decline of over 60%. The company’s financial indicators, including rising interest costs, negative EBITDA, and consecutive quarterly losses, have contributed to a Strong Sell rating with a Mojo Score of 3.0. Institutional investor interest has waned, and the stock trades below all major moving averages, underscoring the current challenges faced by the company within its sector.
Market Outlook and Positioning
While the broader market has shown signs of recovery and strength, particularly among mega-cap stocks, Exicom Tele-Systems Ltd remains under pressure. The stock’s performance relative to the Sensex and sector peers highlights the ongoing difficulties in reversing its downward trend. The company’s financial profile and recent results continue to weigh on its market valuation and investor confidence.
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