Key Events This Week
Jan 20: Q3 FY26 revenue reappears after seven quarters, but losses persist
Jan 21: Quality grade downgraded to 'Below Average' highlighting fundamental weaknesses
Jan 21: Mojo Grade downgraded to 'Strong Sell' amid weak fundamentals and bearish technicals
Jan 23: Week closes at Rs.0.94, down 8.74% for the week
Jan 19: Flat Start Amid Broader Market Weakness
The week began with Laddu Gopal Online Services Ltd holding steady at Rs.1.03, unchanged from the previous close. This stability came despite a 0.49% decline in the Sensex to 36,650.97 points, reflecting early market caution. Trading volume was robust at 964,381 shares, indicating investor interest despite the broader market's negative tone.
Jan 20: Revenue Returns but Stock Drops 4.85%
On 20 January, the company reported its Q3 FY26 results, marking a return to revenue after a drought of seven quarters. However, losses persisted, dampening investor enthusiasm. The stock price declined sharply by 4.85% to close at Rs.0.98, underperforming the Sensex which fell 1.82% to 35,984.65. The increased volume of 1,082,459 shares suggested active selling pressure as investors digested the mixed financial update.
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Jan 21: Quality Grade Downgrade and Strong Sell Rating Weigh on Shares
The following day, Laddu Gopal’s quality grade was downgraded from 'Does Not Qualify' to 'Below Average' by MarketsMOJO, signalling deteriorating business fundamentals. This downgrade reflected a negative EBIT growth rate of -7.38% over five years despite a strong sales growth of 35.8%, highlighting operational inefficiencies. The company’s profitability ratios were weak, with an average ROE of 2.3% and a negative ROCE of -1.4%, while the EBIT to interest coverage ratio was negative at -0.61, indicating difficulty in servicing debt.
Consequently, the Mojo Grade was downgraded to 'Strong Sell' with a low Mojo Score of 12.0, reflecting significant caution. The stock price reacted negatively, falling 3.06% further to Rs.0.95 on 21 January, while the Sensex declined 0.47% to 35,815.26. Trading volume decreased to 794,789 shares, but the downward trend was clear as investors responded to the fundamental concerns and bearish technical outlook.
Jan 22: Continued Decline Despite Sensex Recovery
On 22 January, Laddu Gopal’s stock price slipped another 2.11% to Rs.0.93, even as the Sensex rebounded 0.76% to 36,088.66. The divergence highlighted the company-specific challenges overshadowing broader market gains. Volume rose to 861,703 shares, indicating persistent selling interest. The downgrade and weak financial metrics continued to weigh heavily on sentiment, with no positive catalysts emerging to arrest the decline.
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Jan 23: Slight Recovery but Week Ends Lower
The week concluded on 23 January with a modest 1.08% gain to Rs.0.94, partially recovering from the prior days’ losses. However, this was insufficient to offset the overall weekly decline of 8.74%. The Sensex fell 1.33% to 35,609.90, meaning Laddu Gopal underperformed the benchmark by 5.43% over the week. Trading volume dropped sharply to 237,450 shares, reflecting reduced activity as the stock settled near its weekly low.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-01-19 | Rs.1.03 | +0.00% | 36,650.97 | -0.49% |
| 2026-01-20 | Rs.0.98 | -4.85% | 35,984.65 | -1.82% |
| 2026-01-21 | Rs.0.95 | -3.06% | 35,815.26 | -0.47% |
| 2026-01-22 | Rs.0.93 | -2.11% | 36,088.66 | +0.76% |
| 2026-01-23 | Rs.0.94 | +1.08% | 35,609.90 | -1.33% |
Key Takeaways
Return to Revenue but Persistent Losses: The reappearance of revenue in Q3 FY26 ended a seven-quarter drought, yet the company continues to report losses, limiting positive market reaction.
Fundamental Weaknesses Evident: The downgrade to a 'Below Average' quality grade and a 'Strong Sell' Mojo Grade reflect deteriorating profitability, poor capital efficiency, and weak debt servicing ability. Negative EBIT growth and low returns on equity and capital employed underscore operational challenges.
Technical and Valuation Concerns: Bearish technical indicators and a steep decline in share price over multiple time frames highlight sustained selling pressure and valuation risks. The stock’s underperformance relative to the Sensex and peers signals limited investor confidence.
Conclusion
Laddu Gopal Online Services Ltd’s week was characterised by a significant decline in share price amid fundamental and technical headwinds. Despite a welcome return to revenue, persistent losses and deteriorating financial metrics have overshadowed any optimism. The downgrade to a 'Strong Sell' rating and below average quality grade by MarketsMOJO signals caution for investors, as the company faces operational inefficiencies, poor profitability, and challenging market conditions. The stock’s underperformance relative to the Sensex further emphasises the risks involved. Without clear signs of operational turnaround or improved financial health, Laddu Gopal’s near-term outlook remains subdued.
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