Jhaveri Credits & Capital Faces Stock Volatility Amid Weak Long-Term Fundamentals

Jhaveri Credits & Capital, a microcap player in the finance/NBFC sector, has experienced significant stock activity today, touching a 52-week low. The stock is currently trading at Rs 154.9, just 3.79% away from this low. Despite this, it has outperformed its sector by 2.82% today, marking a trend reversal after two consecutive days of decline. The stock reached an intraday high of Rs 172.05, reflecting an 11% increase.
However, Jhaveri Credits & Capital's long-term fundamentals appear weak, with an average Return on Equity (ROE) of 4.93%. The stock is technically in a bearish range, having deteriorated from a mildly bearish trend since December 2024, resulting in a substantial -44.97% return during this period. The company has reported positive results for the last three consecutive quarters, with net sales growing by 267.07% to Rs 6.02 crore and a profit after tax increase of 75.71% to Rs 2.46 crore. Despite these gains, the stock has underperformed the broader market, with a staggering -67.46% return over the past year compared to the Sensex's 6.32% increase.