Key Events This Week
9 Feb: Intraday high surge of 7.82% to Rs.51.57
9 Feb: Technical momentum shifts amid bearish signals
10 Feb: Mixed technical signals with 7.38% price gain
10 Feb: Valuation shifts to attractive amid robust market performance
13 Feb: Week closes at Rs.47.94 (-0.04%)
9 February 2026: Strong Intraday Rally Amid Volatility
Filatex India Ltd opened the week with a robust performance, surging 8.55% to close at Rs.52.06, significantly outperforming the Sensex’s 1.04% gain. The stock reached an intraday high of Rs.51.57, marking a 7.82% increase from the previous close. This rally reversed the prior two-day decline and was accompanied by heightened volatility, with an intraday volatility measure of 96.23%.
The surge was supported by the stock trading above its 5-day, 20-day, and 50-day moving averages, signalling short- to medium-term strength. However, it remained below longer-term averages, indicating resistance at higher levels. Despite the strong price action, technical momentum showed signs of bearish shift, with MACD and moving averages signalling downward pressure, reflecting a complex technical environment.
Filatex’s Mojo Score stood at 53.0 with a Hold rating, downgraded from Buy in December 2025, reflecting cautious analyst sentiment amid mixed technical signals.
Technical Momentum Shifts and Mixed Signals on 9-10 February
Alongside the price surge on 9 February, technical indicators revealed a nuanced picture. The MACD remained bearish on weekly and monthly charts, while the RSI stayed neutral, suggesting no immediate oversold or overbought conditions. Bollinger Bands indicated increased volatility with a mildly bearish stance, and the Know Sure Thing (KST) indicator showed bearish weekly but mildly bullish monthly signals.
On-balance volume (OBV) suggested mild accumulation on a weekly basis, though monthly trends were unclear. Dow Theory signals were mildly bullish weekly but bearish monthly, underscoring the mixed momentum. These factors contributed to the Hold rating and a cautious outlook despite the strong intraday gains.
On 10 February, the stock continued to show volatility, closing at Rs.51.50, up 7.38% from the previous close. However, technical indicators remained mixed, with daily moving averages mildly bearish and MACD still negative, indicating that the recent gains might face resistance without further catalysts.
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Valuation Shifts to Attractive Amid Robust Market Performance
On 10 February, alongside the price momentum, Filatex India Ltd’s valuation metrics improved from very attractive to attractive. The stock’s price-to-earnings (P/E) ratio stood at 12.36, significantly lower than sector peers such as Trident (32.56) and Vardhman Textile (18.36), indicating relative undervaluation.
The price-to-book value (P/BV) ratio of 1.62 and enterprise value to EBITDA (EV/EBITDA) of 6.65 further underscored the stock’s attractive valuation compared to competitors like Welspun Living and Indo Count Industries, which have EV/EBITDA ratios exceeding 16. This valuation repositioning suggests renewed investor interest despite the cautious technical backdrop.
Financially, Filatex demonstrated solid operational efficiency with a return on capital employed (ROCE) of 18.80% and return on equity (ROE) of 13.13%, supporting its fundamental strength within the garments and apparels sector.
Price and Market Context Through the Week
Following the initial surge, Filatex’s price gradually declined over the remainder of the week, closing at Rs.47.94 on 13 February, a marginal 0.04% decrease from the week’s open of Rs.47.96. This contrasted with the Sensex’s 0.54% decline, indicating relative resilience by the stock.
The daily declines from 11 to 13 February ranged between 2.24% and 3.04%, reflecting profit-taking and technical pressure. Trading volumes also tapered after the early-week spike, signalling reduced market participation amid the consolidation phase.
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Daily Price Comparison: Filatex India Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.52.06 | +8.55% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.51.95 | -0.21% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.50.37 | -3.04% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.49.04 | -2.64% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.47.94 | -2.24% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: Filatex India Ltd demonstrated strong early-week momentum with an 8.55% surge on 9 February, significantly outperforming the Sensex. The stock’s valuation metrics improved to an attractive grade, supported by solid ROCE and ROE figures. Long-term returns remain impressive, with a ten-year gain exceeding 1,200%, highlighting sustained growth potential.
Cautionary Signals: Despite early gains, technical momentum shifted to a more bearish stance, with MACD and moving averages signalling downward pressure. The stock closed the week marginally lower, with consecutive daily declines from 11 to 13 February. Volume contraction and mixed technical indicators suggest ongoing consolidation and uncertainty in the near term.
Overall, the stock’s relative outperformance versus the Sensex amid a broadly declining market reflects resilience, but the mixed technical and valuation signals counsel a cautious approach.
Conclusion
Filatex India Ltd’s week was characterised by a strong initial rally followed by a gradual pullback, resulting in a near-flat weekly close. The stock outperformed the broader market, supported by improved valuation metrics and solid fundamental returns. However, technical indicators remain mixed, with bearish momentum offsetting some of the early optimism.
Investors should monitor key technical levels and volume trends closely, balancing the stock’s attractive valuation against the prevailing consolidation phase. The Hold rating and Mojo Score of 55.0 reflect this balanced outlook, suggesting that while Filatex remains a noteworthy player in the garments and apparels sector, near-term price action may remain volatile.
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