Likhitha Infrastructure Stock Hits 52-Week Low at Rs.183 Amidst Prolonged Downtrend

Recent Price Movement and Market Context

On 8 December 2025, Likhitha Infrastructure’s stock price touched Rs.183, the lowest level recorded in the past year. This new low comes after four consecutive sessions of decline, during which the stock has delivered a cumulative return of -4.44%. Today’s performance saw the stock underperform its construction sector peers by 0.75%, while the broader Sensex index opened flat but moved into negative territory, trading at 85,479.95 points, down 0.27% from the previous close.

Despite the Sensex trading near its 52-week high of 86,159.02 and maintaining a bullish stance above its 50-day and 200-day moving averages, Likhitha Infrastructure’s shares remain below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the stock’s current weakness relative to the broader market momentum.

Long-Term Performance and Valuation Metrics

Over the last twelve months, Likhitha Infrastructure’s stock has recorded a total return of -54.27%, contrasting sharply with the Sensex’s positive return of 4.54% over the same period. The stock’s 52-week high was Rs.402.30, indicating a substantial decline from its peak. This underperformance extends beyond the last year, with the stock also lagging behind the BSE500 index over the past three years and the recent three-month period.

From a valuation standpoint, the company exhibits a Price to Book Value ratio of 1.8, which is considered fair relative to its peers’ historical averages. The Return on Equity (ROE) stands at 15.1%, suggesting a moderate level of profitability for shareholders. Additionally, the company maintains a low average Debt to Equity ratio of zero, indicating minimal leverage on its balance sheet.

Financial Results and Profitability Trends

The company’s recent quarterly results reveal a contraction in profitability. Profit Before Tax (PBT) excluding other income for the quarter stood at Rs.14.69 crores, reflecting a decline of 30.1% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) for the quarter was Rs.11.52 crores, down by 30.3% relative to the prior four-quarter average.

Return on Capital Employed (ROCE) for the half-year period was recorded at 20.61%, the lowest level observed in recent reporting periods. These figures indicate subdued earnings performance in both the near term and over the last several quarters.

Shareholding and Market Interest

Despite the company’s size within the construction sector, domestic mutual funds hold no stake in Likhitha Infrastructure. Given that mutual funds typically conduct detailed research and maintain positions in companies they find favourable, this absence of institutional ownership may reflect a cautious stance towards the stock’s current valuation or business outlook.

Sector and Peer Comparison

Within the construction industry, Likhitha Infrastructure’s stock has not matched the performance of its sectoral peers or the broader market indices. The stock’s returns over the past year and longer periods have lagged behind the BSE500 index, which represents a broad cross-section of Indian equities. This relative underperformance highlights challenges in maintaining growth momentum amid competitive and market pressures.

Summary of Key Financial Indicators

Over the past five years, the company’s operating profit has grown at an annual rate of 3.87%, indicating modest expansion in core earnings. However, the recent quarterly results show a contraction in profitability metrics, with both PBT and PAT declining by approximately 30% compared to recent averages.

Profitability ratios such as ROCE and ROE remain moderate, with ROCE at 20.61% for the half-year and ROE at 15.1%. The stock’s valuation metrics, including a Price to Book Value of 1.8, suggest it is trading at a reasonable level relative to historical norms and peer valuations.

Despite these valuation factors, the stock’s price performance has been weak, with a 54.27% decline over the last year and a 12.2% reduction in profits during the same period. This divergence between valuation and price performance reflects market concerns about the company’s near-term earnings trajectory and competitive positioning.

Market Environment and Broader Indices

The broader market environment has remained relatively stable, with the Sensex trading close to its 52-week high and maintaining a bullish trend above key moving averages. This contrast between the market’s overall strength and Likhitha Infrastructure’s share price weakness highlights the stock’s relative underperformance within the construction sector and the wider equity market.

Technical Indicators and Trading Patterns

Technically, Likhitha Infrastructure’s shares are trading below all major moving averages, including short-term (5-day, 20-day) and long-term (50-day, 100-day, 200-day) averages. This positioning suggests a sustained bearish trend in the stock price, with limited immediate technical support levels visible at current price points.

The stock’s four-day consecutive decline and the new 52-week low reinforce the prevailing downward momentum, which has persisted despite broader market gains and sectoral stability.

Conclusion

Likhitha Infrastructure’s stock reaching a 52-week low of Rs.183 reflects a combination of subdued financial results, relative underperformance against sector and market benchmarks, and cautious institutional interest. While valuation metrics indicate the stock is trading at a fair level compared to peers, recent earnings contractions and technical indicators point to ongoing challenges in reversing the downtrend. The stock’s performance contrasts with the broader market’s positive momentum, underscoring company-specific factors influencing investor sentiment and price action.

Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →