Recent Price Movement and Market Context
On 24 Nov 2025, Likhitha Infrastructure opened with a gap down of 2.09%, touching an intraday low of Rs.197.05, the lowest level in the past year. The stock underperformed its sector by 1.3% and closed with a day change of -1.22%. This marks the seventh consecutive session of decline, cumulatively resulting in a 9.37% reduction in returns over this period.
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 downward momentum. This technical positioning suggests that the stock has not found short-term support levels to halt the slide.
In contrast, the broader market has shown resilience. The Sensex opened 88.12 points higher and is trading at 85,343.57, a 0.13% gain. The index is approaching its 52-week high of 85,801.70, just 0.54% away, and has recorded a 2.56% rise over the past three weeks. Mega-cap stocks have been leading this positive trend, with the Sensex trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a bullish market environment.
Long-Term Performance and Valuation Metrics
Over the last year, Likhitha Infrastructure's stock has returned -41.87%, a stark contrast to the Sensex's 7.85% gain during the same period. The stock's 52-week high was Rs.404.25, underscoring the extent of the decline to the current low of Rs.197.05.
From a valuation standpoint, the company exhibits a price-to-book value of 2, which is considered fair relative to its peers' historical averages. The return on equity (ROE) stands at 15.1%, reflecting 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.
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Profitability and Cash Position
The company's profitability metrics have shown subdued trends. The operating profit has grown at an annual rate of 3.87% over the past five years, indicating modest expansion in core earnings. However, recent quarterly results reveal a decline in profit after tax (PAT), which stood at Rs.11.52 crore, reflecting a 30.3% reduction compared to the previous four-quarter average.
Return on capital employed (ROCE) for the half-year period is reported at 20.61%, the lowest level recorded, signalling pressure on the efficiency of capital utilisation. Cash and cash equivalents have also contracted to Rs.73.87 crore, the lowest in recent reporting periods, which may impact the company's liquidity buffer.
Despite the company's size, domestic mutual funds hold no stake in Likhitha Infrastructure. This absence of institutional ownership may reflect a cautious stance given the company's recent financial performance and valuation considerations.
Comparative Performance and Sector Positioning
When compared with the BSE500 index, Likhitha Infrastructure has underperformed over multiple time frames, including the last three years, one year, and three months. This underperformance highlights challenges in maintaining competitive growth and market share within the construction sector.
While the stock's valuation metrics suggest it is trading at a reasonable level relative to peers, the decline in profits by 12.2% over the past year adds to concerns about near-term earnings momentum. The stock's current price level at Rs.197.05 is less than half its 52-week high, underscoring the significant market repricing that has occurred.
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Summary of Key Financial Indicators
Likhitha Infrastructure's recent financial data presents a mixed picture. The company’s operating profit growth rate of 3.87% over five years contrasts with a notable decline in quarterly PAT and a reduction in cash reserves. The ROCE figure at 20.61% is at its lowest, while the ROE of 15.1% remains moderate. The stock’s price-to-book ratio of 2 suggests valuation in line with sector norms, but the significant price depreciation over the past year reflects market concerns.
In the context of a broadly positive market environment, with the Sensex nearing its 52-week high and mega-cap stocks leading gains, Likhitha Infrastructure’s share price performance stands out for its relative weakness. The stock’s position below all major moving averages further emphasises the current downward trend.
Conclusion
Likhitha Infrastructure’s stock reaching a 52-week low of Rs.197.05 marks a notable event for the company within the construction sector. The seven-day consecutive decline and underperformance relative to both sector and market benchmarks highlight ongoing challenges. Financial indicators point to subdued profit trends and cautious valuation, while the absence of domestic mutual fund holdings adds to the stock’s distinct market profile. Investors and market participants will continue to monitor the stock’s trajectory amid a generally positive broader market backdrop.
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