Key Events This Week
Feb 23: Stock opens at Rs.7,381, down 1.96% as Sensex gains 0.39%
Feb 24: Rebounds 1.92% to Rs.7,522 amid Sensex decline of 0.78%
Feb 26: Technical upgrade to Sell announced; stock gains 1.10% to Rs.7,605
Feb 27: Week closes at Rs.7,505, down 1.77% on heavy Sensex fall of 1.16%
Monday, 23 February: Sharp Opening Decline Amid Broader Market Gains
Lakshmi Mills began the week on a weak note, closing at Rs.7,381, down 1.96% from the previous Friday’s close of Rs.7,528.60. This decline contrasted with the Sensex’s 0.39% gain to 36,817.86, indicating stock-specific selling pressure. The volume was relatively low at 39 lakh shares, suggesting cautious trading. The drop may reflect lingering concerns over the company’s fundamental outlook despite recent technical signals.
Tuesday, 24 February: Strong Rebound as Sensex Retreats
The stock rebounded sharply by 1.92% to Rs.7,522.40, recovering most of Monday’s losses. This recovery occurred despite the Sensex falling 0.78% to 36,530.09, highlighting relative strength in Lakshmi Mills. Volume surged to 109 lakh shares, signalling renewed investor interest. The bounce was likely driven by technical buying and anticipation of upcoming news on the company’s rating and momentum.
Wednesday, 25 February: Moderate Gains Ahead of Technical Upgrade
Continuing its upward trajectory, Lakshmi Mills added 1.09% to close at Rs.7,604.45. The Sensex also recovered, rising 0.41% to 36,679.75. Volume was moderate at 35 lakh shares. The steady gains suggested growing confidence in the stock’s technical outlook, setting the stage for the upgrade announced the following day.
Thursday, 26 February: Technical Upgrade Spurs 1.10% Rally
On 26 February, Lakshmi Mills was upgraded by MarketsMOJO from Strong Sell to Sell, reflecting improved technical indicators despite ongoing fundamental concerns. The stock responded positively, gaining 1.10% to close at Rs.7,640, its weekly high. The intraday range of Rs.7,525 to Rs.7,648 demonstrated moderate volatility. The Sensex also advanced 0.19% to 36,748.49. This upgrade was underpinned by a shift in momentum indicators such as MACD and KST from bearish to mildly bearish on monthly charts, signalling potential stabilisation.
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Friday, 27 February: Profit Taking Amid Market Weakness
The week ended with Lakshmi Mills retreating 1.77% to Rs.7,505 on very low volume of 4 lakh shares. This decline occurred alongside a sharp Sensex fall of 1.16% to 36,322.56, reflecting broader market weakness. The stock’s weekly performance was a modest loss of 0.31%, outperforming the Sensex’s 0.96% decline. The pullback may represent profit booking after the technical upgrade rally, with investors cautious amid mixed fundamental signals.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-23 | Rs.7,381.00 | -1.96% | 36,817.86 | +0.39% |
| 2026-02-24 | Rs.7,522.40 | +1.92% | 36,530.09 | -0.78% |
| 2026-02-25 | Rs.7,604.45 | +1.09% | 36,679.75 | +0.41% |
| 2026-02-26 | Rs.7,640.00 | +0.47% | 36,748.49 | +0.19% |
| 2026-02-27 | Rs.7,505.00 | -1.77% | 36,322.56 | -1.16% |
Key Takeaways: Technical Recovery Amid Fundamental Caution
Technical Upgrade Signals Stabilisation: The upgrade from Strong Sell to Sell on 25 February was driven by improved technical indicators. The MACD and KST oscillators shifted from bearish to mildly bearish on monthly charts, while Bollinger Bands suggested increased price stability. This technical momentum shift was reflected in the stock’s 1.10% gain on 26 February, its weekly high of Rs.7,640.
Fundamental Challenges Persist: Despite the technical improvement, Lakshmi Mills continues to face fundamental headwinds. The company’s Return on Capital Employed remains low at 0.2%, and sales growth is modest at 9.08% annually over five years. Profitability has deteriorated sharply, with a 140% decline in profits over the past year despite a 29.12% price gain. These factors temper enthusiasm and warrant caution.
Relative Outperformance vs Sensex: The stock outperformed the Sensex’s 0.96% weekly decline by falling only 0.31%, demonstrating relative resilience. This outperformance was particularly evident midweek when the stock rose despite a falling Sensex, indicating selective investor interest based on technical factors.
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Conclusion: A Week of Mixed Signals and Cautious Optimism
The week for Lakshmi Mills Company Ltd was characterised by a subtle technical recovery amid ongoing fundamental concerns. The upgrade to a Sell rating from Strong Sell reflects a tentative easing of bearish momentum, supported by improved technical indicators and a relative outperformance against the Sensex. However, the company’s weak profitability metrics and modest sales growth continue to weigh on its investment appeal.
Investors should note the divergence between price performance and earnings quality, with the stock’s recent gains not fully supported by fundamentals. The low trading volumes towards the week’s end and the pullback on Friday suggest caution remains warranted. Monitoring upcoming quarterly results and sector developments will be critical to assessing whether the technical improvements can translate into sustained gains.
Overall, Lakshmi Mills remains in a transitional phase, with technical momentum building but fundamental challenges persisting. The stock’s modest weekly decline of 0.31% against a broader market fall of 0.96% highlights resilience, yet the path forward requires careful scrutiny of both technical and financial indicators.
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