Key Events This Week
16 Feb: Upgraded to Hold on mixed financial and technical signals
19 Feb: Hits new 52-week high at Rs.132
20 Feb: Week closes at Rs.115.35 (+6.81%)
16 February: Upgrade to Hold Spurs Early Week Gains
On 16 February, H P Cotton Textile Mills Ltd’s stock opened at Rs.108.00 and closed at Rs.110.40, marking a 2.22% gain on the day. This positive move coincided with MarketsMOJO’s upgrade of the company’s rating from Sell to Hold, reflecting a nuanced reassessment of its financial and technical outlook. The upgrade was driven by a flat but stabilising financial trend, improved valuation metrics, and bullish technical indicators such as a weekly MACD and daily moving averages.
The company’s return on capital employed (ROCE) of 20.03% and a modest price-to-earnings ratio of 12.95 were highlighted as strengths, despite a relatively high debt-equity ratio of 2.17 times. The upgrade helped the stock outperform the Sensex, which rose 0.70% that day, signalling renewed investor interest amid cautious optimism.
17-18 February: Continued Momentum with Strong Price Advances
The stock maintained its upward trajectory on 17 and 18 February, gaining 3.49% and 6.83% respectively, closing at Rs.114.25 and Rs.122.05. These gains outpaced the Sensex’s more modest increases of 0.32% and 0.43% on the same days. The sustained buying interest was supported by the technical bullishness noted in the upgrade report, with the stock steadily moving above key moving averages and showing strong momentum indicators.
Volume also increased during these sessions, with 7,430 shares traded on 17 February and 8,291 on 18 February, indicating growing market participation. The stock’s relative strength within the garments and apparels sector became increasingly apparent as it approached its 52-week high.
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19 February: New 52-Week High Amid Volatility
On 19 February, H P Cotton Textile Mills Ltd reached a significant milestone by touching a new 52-week high of Rs.132 during intraday trading, representing an 8.15% increase from the previous close. The stock opened with a strong gap up of 7.29%, signalling robust buying interest. However, the session was marked by notable volatility, with an intraday low of Rs.118.10, a 3.24% decline from the prior close, and a weighted average price volatility of 5.56%.
Despite the intraday swings, the stock closed lower by 4.22% at Rs.116.90, reflecting profit-taking after six consecutive days of gains. This decline underperformed the sector by 2.45% but the stock remained above all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained underlying strength.
The broader market was less supportive, with the Sensex falling 1.45% amid a sharp reversal, closing at 36,523.88. The stock’s ability to maintain levels above technical support amidst this market weakness highlights its relative resilience.
20 February: Week Closes with Minor Pullback
The week concluded on 20 February with the stock closing at Rs.115.35, down 1.33% from the previous day’s close. Trading volume was notably low at 470 shares, suggesting subdued activity and consolidation after the prior day’s volatility. The Sensex rebounded modestly by 0.41% to 36,674.32, but the stock’s slight decline still resulted in a strong weekly gain of 6.81% overall.
This minor pullback after a week of strong gains is consistent with typical profit-taking and does not detract from the stock’s positive momentum established earlier in the week.
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Daily Price Comparison: H P Cotton Textile Mills Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.110.40 | +2.22% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.114.25 | +3.49% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.122.05 | +6.83% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.116.90 | -4.22% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.115.35 | -1.33% | 36,674.32 | +0.41% |
Key Takeaways
Positive Signals: The upgrade to Hold by MarketsMOJO on 16 February was a pivotal event, reflecting improved valuation and technical indicators despite flat financial trends. The stock’s strong ROCE of 20.03% and attractive valuation multiples, including a PE ratio of 12.95 and a PEG ratio of 0.02, underpin its appeal. The achievement of a new 52-week high at Rs.132 on 19 February further demonstrated robust momentum and investor confidence.
Cautionary Notes: The company’s relatively high debt-equity ratio of 2.17 times remains a risk factor, potentially constraining returns to equity holders as reflected in the modest ROE of 8.14%. The volatility observed on 19 February, with a significant intraday range and a closing decline, suggests that profit-taking and market uncertainty could persist in the near term. The stock’s underperformance relative to the Sensex on the day of the 52-week high highlights the need for vigilance amid broader market fluctuations.
Conclusion
H P Cotton Textile Mills Ltd’s 6.81% weekly gain, significantly outpacing the Sensex’s 0.39% rise, was driven by a combination of an upgraded rating and a new 52-week high milestone. The stock’s technical strength and attractive valuation metrics provide a foundation for cautious optimism, even as elevated leverage and recent volatility temper enthusiasm. Investors should monitor upcoming financial results and market conditions closely to assess whether the stock can sustain its positive momentum amid sectoral and macroeconomic challenges.
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