Likhitha Infrastructure Ltd Stock Hits 52-Week Low Amid Continued Downtrend

Recent Price Movement and Market Context

On 24 Feb 2026, Likhitha Infrastructure Ltd’s stock price fell by 1.21% during the trading session, closing at Rs.150.75, the lowest level recorded in the past year. This decline comes after a consecutive five-day losing streak, during which the stock has depreciated by 7.43%. Despite this, the stock marginally outperformed its sector by 0.84% on the day.

The broader market context saw the Sensex open sharply lower by 242.12 points and further decline by 835.68 points, closing at 82,216.86, down 1.29%. The Sensex remains 4.79% below its 52-week high of 86,159.02, trading below its 50-day moving average, though the 50-day average itself remains above the 200-day moving average, indicating mixed technical signals.

Technical Indicators and Moving Averages

Likhitha Infrastructure’s share price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained downward momentum and a lack of short-term buying interest. The 52-week high for the stock stands at Rs.324.45, highlighting the extent of the decline over the past year.

Financial Performance and Profitability Trends

The company’s financial results have contributed to the subdued market sentiment. Likhitha Infrastructure reported a decline in net sales by 8.16% in the December 2025 quarter, marking the third consecutive quarter of negative results. Quarterly profit after tax (PAT) stood at Rs.9.26 crores, down 38.3% compared to the previous four-quarter average. Operating profit growth has been modest, with a compound annual growth rate of 6.46% over the last five years.

Return on capital employed (ROCE) for the half-year period was recorded at 20.63%, the lowest level in recent times, while quarterly PBDIT dropped to Rs.13.72 crores. These figures indicate a contraction in profitability and operational efficiency, which have weighed on investor confidence.

Comparative Performance and Market Capitalisation

Over the past year, Likhitha Infrastructure has underperformed significantly relative to the benchmark indices. The stock has delivered a negative return of 42.17%, contrasting with the Sensex’s positive 10.45% gain over the same period. Additionally, the stock has consistently lagged behind the BSE500 index in each of the last three annual periods.

The company’s market capitalisation grade is rated 4, reflecting its mid-tier size within the construction sector. Despite its scale, domestic mutual funds hold no stake in the company, which may reflect a cautious stance given the recent financial and price performance.

Valuation and Balance Sheet Metrics

On the valuation front, Likhitha Infrastructure presents a Price to Book Value ratio of 1.5, which is considered fair relative to its peers’ historical averages. The company’s return on equity (ROE) stands at 15.1%, indicating a moderate level of shareholder returns. Notably, the company maintains a low average debt-to-equity ratio of zero, signalling a conservative capital structure with minimal leverage.

Despite the decline in profits by 25% over the past year, the valuation metrics suggest that the stock is not excessively overvalued compared to sector norms.

Mojo Score and Rating Update

Likhitha Infrastructure’s Mojo Score currently stands at 29.0, categorising it as a Strong Sell. This rating was upgraded from a Sell grade on 14 Aug 2025, reflecting a deterioration in the company’s financial and market metrics. The Strong Sell grade is driven by the company’s subdued long-term growth prospects, declining sales, and profitability pressures.

The rating also considers the company’s consistent underperformance relative to benchmarks and the absence of significant institutional ownership, which may indicate limited confidence from professional investors.

Summary of Key Financial Metrics

To summarise, the key financial indicators for Likhitha Infrastructure Ltd as of the latest reporting period include:

• Net Sales decline of 8.16% in the December 2025 quarter
• Quarterly PAT at Rs.9.26 crores, down 38.3% versus prior four-quarter average
• ROCE at 20.63% (half-year), the lowest recorded recently
• PBDIT at Rs.13.72 crores for the quarter, also at a low point
• Debt-to-Equity ratio averaging zero, indicating no significant leverage
• Price to Book Value ratio of 1.5, reflecting fair valuation
• Return on Equity at 15.1%

Sector and Industry Considerations

Operating within the construction industry, Likhitha Infrastructure faces sectoral headwinds that have impacted its performance. The construction sector has experienced volatility due to fluctuating demand and input cost pressures, which have influenced company earnings and stock valuations. The stock’s recent price action and financial results are consistent with these broader sectoral trends.

Conclusion

Likhitha Infrastructure Ltd’s stock reaching a 52-week low of Rs.150.75 underscores the challenges the company has faced over the past year. The combination of declining sales, reduced profitability, and technical weakness has contributed to the current valuation and market sentiment. While the company maintains a conservative balance sheet and fair valuation metrics, its recent financial performance and relative underperformance against benchmarks have led to a Strong Sell rating and subdued investor interest.

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