Key Events This Week
2 Feb: Stock opens at Rs.7,300.05, up 1.39% while Sensex falls 1.03%
3 Feb: MarketsMOJO upgrades Lakshmi Mills to Sell on technical improvements
4 Feb: Technical momentum shifts to mildly bearish amid mixed signals
5 Feb: Stock dips 2.54% on bearish technical signals
6 Feb: Stock rebounds 3.97% to close at Rs.7,510.00, outperforming Sensex
Monday, 2 February: Strong Start Amid Market Weakness
Lakshmi Mills began the week on a positive note, closing at Rs.7,300.05, a gain of 1.39% from the previous Friday’s close of Rs.7,200.00. This outperformance was notable as the Sensex declined 1.03% to 35,814.09. The stock’s volume was moderate at 63, signalling steady investor interest despite broader market weakness. This early strength set the tone for the week’s technical reassessment.
Tuesday, 3 February: Upgrade to Sell Rating on Technical Improvements
On 3 February, MarketsMOJO upgraded Lakshmi Mills from a Strong Sell to a Sell rating, reflecting improved technical indicators despite persistent fundamental challenges. The stock price rose 1.45% to Rs.7,405.95, outperforming the Sensex’s 2.63% gain to 36,755.96. The upgrade was driven by a shift in the stock’s technical profile from strongly bearish to mildly bearish on monthly charts, with MACD and Bollinger Bands signalling potential stabilisation. However, fundamental metrics such as ROCE and debt servicing remained weak, tempering enthusiasm.
Wednesday, 4 February: Mixed Technical Signals Amid Momentum Shift
The stock edged up marginally by 0.08% to Rs.7,411.55, while the Sensex rose 0.37% to 36,890.21. Technical momentum showed a nuanced shift: weekly MACD remained bearish but monthly MACD improved to mildly bearish, and Bollinger Bands indicated a bullish trend on monthly charts despite weekly mild bearishness. The Relative Strength Index (RSI) remained neutral, suggesting no clear momentum direction. This mixed technical landscape reflected investor caution amid ongoing fundamental concerns.
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Thursday, 5 February: Bearish Reversal on Technical Deterioration
The stock experienced a sharp pullback, declining 2.54% to close at Rs.7,223.00, underperforming the Sensex which fell 0.53% to 36,695.11. This drop reflected a shift from mildly bearish to outright bearish technical momentum, with daily moving averages crossing into bearish territory and MACD confirming sustained downward pressure. Intraday volatility was high, with prices ranging between Rs.7,110.00 and Rs.7,368.95. The bearish signals suggested increased selling interest and caution among traders.
Friday, 6 February: Strong Recovery Caps Week with Outperformance
In a late-week rebound, Lakshmi Mills surged 3.97% to close at Rs.7,510.00, outperforming the Sensex’s modest 0.10% gain to 36,730.20. Despite the prior day’s bearish momentum, the stock demonstrated resilience, supported by technical indicators signalling potential support near current levels. However, the overall technical trend remained cautious, with RSI neutral and Bollinger Bands mildly bearish. Volume was low at 1, indicating limited trading activity during the recovery.
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Weekly Price Performance: Lakshmi Mills vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.7,300.05 | +1.39% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.7,405.95 | +1.45% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.7,411.55 | +0.08% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.7,223.00 | -2.54% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.7,510.00 | +3.97% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: Lakshmi Mills outperformed the Sensex by 2.80% over the week, supported by a technical upgrade from Strong Sell to Sell. The shift from strongly bearish to mildly bearish monthly momentum indicators suggests potential stabilisation. The stock’s long-term returns remain robust, with a 27.12% gain over the past year and a five-year return exceeding 295%.
Cautionary Notes: Despite technical improvements, fundamental metrics such as ROCE (1.80%) and interest coverage (0.72) remain weak, indicating operational and financial challenges. The bearish reversal midweek and low trading volumes during the recovery highlight ongoing uncertainty. The stock’s price remains well below its 52-week high of Rs.10,059.00, reflecting significant valuation risk.
Conclusion
Lakshmi Mills Company Ltd’s week was characterised by a complex interplay of technical momentum shifts and fundamental concerns. The upgrade to a Sell rating on 3 February marked a cautious improvement in outlook, driven by technical stabilisation signals. However, the midweek bearish reversal and persistent fundamental weaknesses underscore the need for careful monitoring. The stock’s outperformance relative to the Sensex and strong long-term returns offer some encouragement, but the mixed technical signals and low volumes suggest that investors should remain vigilant. Overall, Lakshmi Mills remains a stock with potential for recovery, tempered by risks that warrant a balanced and measured approach.
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