Gretex Corporate Services Ltd Gains 21.44%: 4 Key Factors Driving the Rally

2 February 2026: Upper Circuit Triggered on Strong Buying

Gretex Corporate Services Ltd began the week with a striking performance, hitting the upper circuit limit at ₹310.45, a 4.99% intraday gain from the opening price of ₹295.00. The stock closed at ₹303.00, marking a 5.74% increase on the day, while the Sensex declined 1.03% to 35,814.09. This divergence highlighted intense demand for Gretex shares despite broader market weakness.

Intraday volatility was elevated at 6.21%, reflecting sharp price swings. However, trading volumes remained low at 0.00205 lakh shares, indicating that the rally was driven by concentrated buying rather than broad investor participation. The regulatory freeze at the upper circuit capped further gains, signalling unfilled buy orders and strong latent demand.

Technically, the stock traded above its 5-day, 100-day, and 200-day moving averages, signalling short- and long-term bullish momentum, though resistance remained near the 20-day and 50-day averages. Despite the rally, liquidity constraints and a plunge in delivery volumes by 99.98% suggested limited long-term investor conviction.

3 February 2026: Downgrade to Strong Sell Amid Valuation and Financial Concerns

On 3 February, MarketsMOJO downgraded Gretex Corporate Services Ltd from Sell to Strong Sell, citing deteriorating fundamentals and stretched valuation metrics. The Mojo Score dropped to 28.0, reflecting heightened risk. Key valuation indicators painted a challenging picture: a negative price-to-earnings (P/E) ratio of -217.19, a high price-to-book (P/B) ratio of 5.14, and elevated enterprise value multiples including EV to EBIT at 38.63 and EV to EBITDA at 33.87.

Financial trends worsened with net sales declining 25.7% to ₹42.16 crores in Q3 FY25-26 and profit before tax plunging 210.7% to a loss of ₹1.35 crores. Return on equity was negative at -1.03%, signalling value destruction, while return on capital employed remained low at 4.46%. Despite these challenges, institutional investors marginally increased their stake by 1.5%, suggesting some confidence amid uncertainty.

Technically, the stock had underperformed over the past year, falling 20.40% compared to the BSE500’s 5.48% gain. Shorter-term returns were also negative, with a one-month decline of 8.22% and a year-to-date drop of 8.46%, both underperforming the Sensex. The downgrade underscored the disconnect between recent price rallies and underlying fundamentals.

3 February 2026: Valuation Shifts Signal Heightened Price Risk

Further analysis on 3 February highlighted Gretex’s shift from an expensive to a very expensive valuation category. The negative P/E ratio of -217.19 and elevated P/B of 5.14 indicated that the stock was trading at a significant premium despite losses. Enterprise value multiples remained stretched, with EV to EBIT at 38.63 and EV to EBITDA at 33.87, well above sector averages.

Comparisons with peers showed Gretex’s valuation as particularly high relative to companies like Vardhman Holdings and 5Paisa Capital, which are rated attractive or very attractive. The PEG ratio of zero further emphasised the lack of earnings growth, while profitability metrics such as ROE and ROCE remained weak.

The downgrade to Strong Sell and a Mojo Score of 28.0 reflected market scepticism. Despite a slight positive day change of +0.73% on 3 February, the stock’s price remained subdued at ₹303.00, far below its 52-week high of ₹405.00. The valuation concerns and negative earnings trends suggested elevated price risk and potential for further downside.

5 February 2026: Another Upper Circuit Surge Amid Market Weakness

Gretex Corporate Services Ltd continued its strong momentum on 5 February, hitting the upper circuit limit again with a 4.99% intraday gain to ₹332.30. The stock opened at ₹326.00, up 4.58% from the previous close, and closed near the day’s high at ₹330.00. This performance contrasted sharply with the Capital Markets sector’s 0.85% decline and the Sensex’s 0.56% fall, underscoring Gretex’s relative strength.

Trading volume increased to 0.05478 lakh shares, with a turnover of ₹0.18 crore, supporting the price rally. However, delivery volumes remained extremely low, with only 14 shares delivered on 4 February, a 99.86% drop from the 5-day average, indicating speculative buying rather than long-term accumulation.

Technically, the stock traded above its 5-day, 20-day, 100-day, and 200-day moving averages, signalling positive momentum, though resistance persisted below the 50-day average. The micro-cap classification and a market capitalisation of approximately ₹775 crore, combined with the Strong Sell rating, suggested caution despite the short-term gains.

The regulatory freeze at the upper circuit capped further gains and indicated unfilled demand, which could fuel volatility once trading resumes. The stock’s three-day consecutive gains amounted to a 13.73% return, highlighting sustained buying interest amid a challenging market backdrop.

Daily Price Performance: Gretex vs Sensex

Key Takeaways

Strong Price Momentum: Gretex’s 21.44% weekly gain significantly outpaced the Sensex’s 1.51% rise, driven by multiple upper circuit hits and sustained buying interest despite low liquidity and delivery volumes.

Valuation and Fundamental Concerns: The downgrade to Strong Sell and a Mojo Score of 28.0 reflect serious valuation risks, with negative earnings, stretched multiples, and deteriorating financial trends undermining the stock’s fundamental appeal.

Technical Strength vs Market Caution: The stock’s price trading above key moving averages signals positive momentum, yet resistance near the 50-day average and regulatory price band freezes indicate potential hurdles ahead.

Liquidity and Investor Participation: Low volumes and sharply reduced delivery shares suggest speculative trading dominates, raising questions about the sustainability of the rally and the depth of investor conviction.

Conclusion

Gretex Corporate Services Ltd’s week was characterised by a striking price rally, with gains of 21.44% amid strong buying pressure and multiple upper circuit hits. However, this technical strength contrasts with deteriorating fundamentals, stretched valuations, and a downgrade to Strong Sell by MarketsMOJO. The stock’s micro-cap status, low liquidity, and sharply declining delivery volumes highlight the speculative nature of recent moves. Investors should weigh the impressive short-term price performance against the underlying risks and valuation concerns before considering exposure to Gretex. The coming weeks will be critical in determining whether the stock can sustain its momentum or face correction amid fundamental headwinds.

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