Recent Price Movement and Trading Activity
On the trading day, Kemp & Co Ltd opened sharply lower by 4.5%, immediately touching an intraday low of Rs 900, which it maintained throughout the session. This price represents the lowest level the stock has traded at in the past year, down from its 52-week high of Rs 1,560. The stock has experienced a consecutive four-day decline, resulting in an 18.12% loss over this period. Notably, trading has been erratic, with the stock not trading on two separate days within the last 20 sessions, indicating possible liquidity constraints or market hesitancy.
The stock’s performance today lagged behind its sector peers, underperforming the Diversified Commercial Services sector by 3.72%. Kemp & Co Ltd is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.
Market Context and Broader Index Performance
The broader market environment has been volatile. The Sensex, after opening 119.19 points higher, reversed sharply to close down by 728.37 points, or 0.74%, at 81,660.60. The index is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, suggesting some underlying resilience in the broader market despite short-term weakness.
Over the last year, Kemp & Co Ltd’s stock has delivered a negative return of 40.40%, in stark contrast to the Sensex’s positive 6.38% gain over the same period. This divergence highlights the company’s relative underperformance within the market.
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Financial Performance and Fundamental Metrics
Kemp & Co Ltd’s financial indicators continue to reflect challenges. The company has reported operating losses, which have contributed to a weak long-term fundamental strength assessment. Its ability to service debt remains constrained, with an average EBIT to interest ratio of -1.23, indicating that earnings before interest and tax are insufficient to cover interest expenses.
The company’s return on capital employed (ROCE) is negative, underscoring the lack of profitability and capital efficiency. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) have also been negative, further highlighting the financial strain.
Recent results for the half-year ended September 2025 were flat, with no dividend per share (DPS) declared, maintaining a dividend payout ratio (DPR) of 0.00%. Cash and cash equivalents stood at a low Rs 0.12 crore, signalling limited liquidity buffers.
Valuation and Risk Considerations
The stock is trading at valuations considered risky relative to its historical averages. Over the past year, profits have declined by 67%, compounding the negative return of 40.40% generated by the stock. This underperformance extends beyond the short term, with the stock lagging the BSE500 index over the last three years, one year, and three months.
Trading patterns have been erratic, with the stock not trading on two days in the last 20 sessions, which may reflect lower liquidity or investor caution. The stock’s market capitalisation grade is rated at 4, indicating a micro-cap status with associated volatility and risk.
Shareholding and Ownership Structure
The majority shareholding is held by promoters, which may influence corporate governance and strategic decisions. However, the current financial and market performance metrics suggest that the company faces significant headwinds in its sector.
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Summary of Key Metrics
To summarise, Kemp & Co Ltd’s stock has reached a new 52-week low of Rs 900, reflecting a sustained decline of over 40% in the past year. The company’s financial health is characterised by operating losses, negative returns on capital, and limited cash reserves. The stock’s trading below all major moving averages and its underperformance relative to the Sensex and sector peers further illustrate the challenges faced.
While the broader market has experienced volatility, Kemp & Co Ltd’s performance has been notably weaker, with a Mojo Score of 12.0 and a recent downgrade to a Strong Sell rating on 26 Sep 2025. The stock’s market cap grade of 4 and erratic trading patterns add to the risk profile.
Investors and market participants will continue to monitor the company’s financial disclosures and market behaviour as it navigates these conditions.
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