Recent Price Movement and Market Context
The stock of Likhitha Infrastructure has been on a downward trajectory for the last two trading sessions, registering a cumulative return of -1.73% during this period. Today's fall to Rs.189.85 represents the lowest price level the stock has seen in the past year, considerably below its 52-week high of Rs.404.25. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained pressure on the share price.
In comparison, the broader market index, Sensex, opened lower by 316.39 points and is trading at 85,322.79, down 0.37%. Despite this, Sensex remains close to its 52-week high of 86,159.02, just 0.98% away, and is positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend for the benchmark index.
Financial Performance Overview
Over the last year, Likhitha Infrastructure's stock has delivered a return of -46.47%, markedly underperforming the Sensex, which has shown a positive return of 6.30% in the same period. This underperformance extends to the medium term as well, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
The company’s quarterly financials for September 2025 reveal a decline in net sales to Rs.102.24 crore, reflecting a 21.0% reduction compared to the average of the previous four quarters. Profit after tax (PAT) for the quarter stood at Rs.11.52 crore, down by 30.3% relative to the prior four-quarter average. Additionally, the return on capital employed (ROCE) for the half-year period was recorded at 20.61%, the lowest level observed recently.
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Long-Term Growth and Valuation Metrics
Examining the company’s growth over the past five years, operating profit has shown an annual growth rate of 3.87%, indicating modest expansion in earnings before interest and taxes. Despite this, the stock’s performance has not reflected this growth, as evidenced by the substantial decline in share price over the last year.
Likhitha Infrastructure maintains a low average debt-to-equity ratio of zero, suggesting a conservative capital structure with minimal reliance on debt financing. The return on equity (ROE) stands at 15.1%, which is considered attractive relative to industry standards. Furthermore, the stock trades at a price-to-book value of 1.9, positioning it at a fair valuation compared to its peers’ historical averages.
However, the company’s profits over the past year have declined by 12.2%, which may have contributed to the subdued market sentiment and the stock’s downward movement.
Shareholding and Market Interest
Despite the company’s size within the construction sector, domestic mutual funds hold no stake in Likhitha Infrastructure. Given that domestic mutual funds typically conduct detailed research on companies, their absence from the shareholding pattern may reflect a cautious stance towards the stock’s current price levels or business outlook.
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Sector and Market Comparison
Likhitha Infrastructure operates within the construction industry, a sector that has experienced mixed performance in recent months. While the broader market indices such as Sensex have maintained levels near their yearly highs, the stock’s performance diverges significantly from this trend. The stock’s decline contrasts with the sector’s overall movement, where Likhitha Infrastructure’s returns today were in line with sector performance but remain substantially lower over longer periods.
The stock’s current trading below all major moving averages further highlights the prevailing downward momentum relative to both short-term and long-term price trends.
Summary of Key Financial Indicators
To summarise, Likhitha Infrastructure’s key financial indicators reveal a company facing challenges in maintaining sales and profitability levels. The quarterly net sales of Rs.102.24 crore and PAT of Rs.11.52 crore both show declines compared to recent averages. The ROCE at 20.61% and ROE at 15.1% provide insight into the company’s capital efficiency and shareholder returns, while the low debt-to-equity ratio indicates limited leverage.
The stock’s valuation metrics, including a price-to-book ratio of 1.9, suggest a valuation that is consistent with historical peer averages, despite the recent price decline to Rs.189.85.
Conclusion
Likhitha Infrastructure’s fall to its 52-week low of Rs.189.85 reflects a combination of subdued financial results, underwhelming returns over the past year, and cautious market sentiment. The stock’s performance contrasts with the broader market’s relative strength, underscoring the challenges faced by the company within the construction sector. Investors and market participants will continue to monitor the company’s financial disclosures and market developments as the stock remains below key technical levels.
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