Key Events This Week
16 Feb: Q3 FY26 results reveal severe revenue contraction
17 Feb: Valuation shifts to risky amid peer comparison and market volatility
18 Feb: Sharp price rebound with 5.49% gain
19 Feb: Continued upward momentum despite Sensex decline
20 Feb: Week closes at Rs.37.44, up 9.25% for the week
16 February: Q3 Results Highlight Operational Crisis
The week began with Lexus Granito releasing its Q3 FY26 results, which revealed a severe contraction in revenue, deepening the company’s operational challenges. The stock reacted negatively, closing at Rs.33.91, down 1.05% from the previous close. Despite the broader market rally, with the Sensex gaining 0.70%, investor sentiment was dampened by the disappointing financial performance and concerns over profitability.
17 February: Valuation Concerns Amid Market Volatility
On 17 February, further scrutiny emerged as Lexus Granito’s valuation metrics shifted to a risky classification. The stock price declined another 1.12% to Rs.33.53, underperforming the Sensex’s 0.32% gain. The company’s price-to-earnings ratio plunged to a negative -10.42, signalling losses, while the price-to-book value ratio surged to 15.94, indicating a premium despite deteriorating fundamentals. These mixed signals heightened investor caution, reflecting the market’s reassessment of the stock’s attractiveness relative to its peers.
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18 February: Strong Price Rebound Amid Increased Volume
Following two days of declines, Lexus Granito staged a robust recovery on 18 February, surging 5.49% to close at Rs.35.37. This rally was accompanied by a notable increase in trading volume to 144,480 shares, signalling renewed investor interest. The Sensex also advanced 0.43%, but the stock’s gain was markedly stronger, reflecting a short-term momentum shift despite lingering fundamental concerns.
19 February: Continued Uptrend Despite Market Weakness
On 19 February, Lexus Granito extended its gains by 3.39%, closing at Rs.36.57, supported by the highest weekly volume of 202,952 shares. This positive price action contrasted with a 1.45% decline in the Sensex, underscoring the stock’s relative strength amid broader market weakness. The rally suggested that some investors were positioning for a potential operational turnaround or capitalising on the stock’s volatility.
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20 February: Week Closes with 2.38% Gain
The week concluded on a positive note as Lexus Granito added 2.38% to close at Rs.37.44. The Sensex also rebounded 0.41%, but the stock’s weekly performance of +9.25% far outpaced the benchmark’s 0.39% gain. This marked the highest closing price of the week, reflecting a strong finish despite the earlier operational and valuation headwinds.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.33.91 | -1.05% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.33.53 | -1.12% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.35.37 | +5.49% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.36.57 | +3.39% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.37.44 | +2.38% | 36,674.32 | +0.41% |
Key Takeaways
Positive Signals: Lexus Granito’s 9.25% weekly gain significantly outperformed the Sensex’s 0.39% rise, driven by strong midweek rebounds and increased trading volumes. The stock’s ability to rally despite initial operational setbacks suggests pockets of investor optimism or speculative interest. The highest weekly close at Rs.37.44 indicates resilience amid volatility.
Cautionary Signals: The company’s Q3 results highlighted severe revenue contraction, deepening operational challenges. Valuation metrics remain stretched and risky, with a negative P/E ratio of -10.42 and a high P/BV of 15.94, signalling a disconnect between price and fundamentals. Profitability remains under pressure, with negative ROCE and ROE figures, and the stock’s premium valuation is not supported by earnings or capital efficiency. Peer comparisons further underscore the elevated risk profile.
Conclusion
Lexus Granito’s week was characterised by a sharp rebound in stock price following a challenging start marked by operational and valuation concerns. While the 9.25% gain and outperformance versus the Sensex are notable, underlying financial metrics and peer comparisons caution against complacency. The company’s stretched valuation and negative profitability indicators suggest that the current price reflects expectations of a turnaround that remains unproven. Investors should remain vigilant and monitor forthcoming quarterly results and strategic developments to assess whether the recent momentum can be sustained amid ongoing challenges.
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