Lexus Granito (India) Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Market Performance and Price Action

Lexus Granito’s stock underperformed both its sector and the broader market on the day. While the diversified consumer products sector declined by 0.68% and the Sensex slipped 0.82%, Lexus Granito’s 4.91% one-day return was significantly weaker. The stock’s price band of ₹5 allowed a maximum permissible movement of 5% for the day, which the share price reached, triggering the lower circuit breaker and halting further declines.

The intraday high and low were tightly clustered at ₹36.01 and ₹35.97 respectively, reflecting a lack of upward momentum and persistent downward pressure. Total traded volume was modest at 0.19126 lakh shares, with a turnover of ₹0.0688 crore, indicating that despite the sharp price fall, liquidity remained limited.

Heavy Selling and Unfilled Supply

The sharp decline was driven by heavy selling pressure, with a notable surge in delivery volumes. On 23 Feb 2026, delivery volume soared to 1.8 lakh shares, a 221.72% increase over the five-day average, signalling rising investor participation but predominantly on the sell side. This spike in delivery volume suggests that investors were offloading shares in large quantities, contributing to the unfilled supply and downward price momentum.

Such panic selling often reflects a loss of confidence in the stock’s near-term prospects, possibly triggered by negative sentiment or concerns over the company’s fundamentals. The stock’s liquidity, while adequate for small trade sizes (₹0.01 crore based on 2% of the five-day average traded value), was insufficient to absorb the selling pressure without sharp price concessions.

Technical and Fundamental Context

Interestingly, despite the sharp fall, Lexus Granito remains priced above its key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates that the stock had been in an uptrend prior to the sell-off, making the sudden drop more pronounced and potentially signalling a short-term correction rather than a sustained downtrend.

From a fundamental perspective, Lexus Granito is classified as a micro-cap with a market capitalisation of ₹74 crore. Its Mojo Score stands at a low 14.0, with a recent downgrade from a 'Sell' to a 'Strong Sell' rating on 24 Dec 2024. The company’s market cap grade is 4, reflecting its relatively small size and limited institutional interest. These factors may have contributed to the heightened volatility and susceptibility to sharp price moves on negative news or market sentiment shifts.

Investor Sentiment and Sector Comparison

The stock’s underperformance relative to its sector highlights a divergence in investor sentiment. While the diversified consumer products sector experienced a mild decline, Lexus Granito’s steep fall suggests company-specific concerns or a lack of confidence in its near-term earnings potential. The downgrade to a 'Strong Sell' rating by MarketsMOJO further underscores the cautious stance analysts have adopted towards the stock.

Given the company’s micro-cap status and relatively low liquidity, the stock is more vulnerable to sharp price swings triggered by concentrated selling. This dynamic often leads to circuit breaker hits, as seen today, where the lower circuit limit prevents further declines but also signals heightened risk for investors.

Outlook and Risk Considerations

Investors should approach Lexus Granito with caution given the current market signals. The strong sell rating and recent price action indicate deteriorating fundamentals or market perception. While the stock’s position above key moving averages may offer some technical support, the heavy unfilled supply and panic selling suggest that downside risks remain elevated in the near term.

For those holding the stock, monitoring delivery volumes and price action in the coming sessions will be critical to gauge whether selling pressure abates or intensifies. New investors may prefer to wait for clearer signs of stability or a fundamental turnaround before considering entry.

Summary

Lexus Granito (India) Ltd’s stock experienced a sharp decline on 24 Feb 2026, hitting the lower circuit limit of 5% amid heavy selling and panic among investors. The stock’s maximum daily loss of 4.99% and unfilled supply reflect significant downside pressure, exacerbated by a downgrade to a strong sell rating and limited liquidity. While the stock remains technically above key moving averages, the fundamental outlook and market sentiment remain weak, warranting caution for current and prospective investors.

As the stock navigates this turbulent phase, close attention to trading volumes, price trends, and sector developments will be essential to assess potential recovery or further declines.

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