Likhitha Infrastructure Stock Falls to 52-Week Low of Rs.186.6

Recent Price Movement and Market Context

On 5 December 2025, Likhitha Infrastructure’s share price touched Rs.186.6, the lowest level in the past year. This decline comes after the stock experienced a cumulative return loss of 1.17% over the last three trading sessions. The day’s movement saw the stock fall by 0.47%, aligning with the sector’s overall performance. Despite the broader market’s positive momentum, with the Sensex closing at 85,376.13—up 0.13% and approaching its 52-week high of 86,159.02—the stock’s trajectory remains subdued.

The Sensex’s recovery from an initial negative opening, supported by mega-cap stocks and bullish moving averages, contrasts with Likhitha Infrastructure’s position below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day marks. This technical positioning indicates a sustained downward trend relative to the broader market.

Long-Term Performance and Valuation Metrics

Over the past year, Likhitha Infrastructure’s stock has recorded a return of -51.41%, significantly underperforming the Sensex, which has shown a positive return of 4.42% during the same period. The stock’s 52-week high was Rs.404.25, highlighting the extent of the decline. This underperformance extends beyond the last year, with the stock also lagging behind the BSE500 index over one, three years, and the recent three-month period.

From a valuation perspective, the company’s price-to-book value stands at 1.9, which is considered fair relative to its peers’ historical averages. The return on equity (ROE) is recorded at 15.1%, indicating a moderate level of profitability for shareholders. Additionally, the company maintains a low average debt-to-equity ratio of zero, suggesting limited leverage on its balance sheet.

Profitability and Earnings Trends

The company’s recent quarterly results reveal a decline in profitability metrics. Profit before tax (PBT) for the quarter stood at Rs.14.69 crores, reflecting a 30.1% reduction compared to the average of the previous four quarters. Similarly, profit after tax (PAT) was Rs.11.52 crores, down by 30.3% relative to the same benchmark. The return on capital employed (ROCE) for the half-year period is recorded at 20.61%, the lowest level observed in recent times.

Over the past year, profits have contracted by 12.2%, which aligns with the stock’s downward price movement. These figures suggest that the company has faced challenges in maintaining its earnings momentum amid the current market conditions.

Shareholding and Market Interest

Despite Likhitha Infrastructure’s size within the construction sector, domestic mutual funds hold no stake in the company. Given that mutual funds typically conduct detailed research and maintain positions in companies with favourable prospects, their absence may indicate a cautious stance towards the stock’s current valuation or business outlook.

Sector and Peer Comparison

Within the construction sector, Likhitha Infrastructure’s performance contrasts with the broader market’s positive trend. The Sensex’s proximity to its 52-week high and its position above key moving averages underscore a generally bullish environment for large-cap stocks. However, Likhitha Infrastructure’s share price remains below all major moving averages, signalling a divergence from sectoral and market-wide gains.

Summary of Key Financial Indicators

Likhitha Infrastructure’s financial indicators over recent periods highlight subdued growth and earnings contraction. Operating profit has shown an annual growth rate of 3.87% over the last five years, a modest figure relative to industry standards. The company’s return on equity and price-to-book value suggest a valuation that is reasonable but not indicative of strong expansion.

The stock’s performance over the last year, with a return of -51.41%, and the decline in quarterly profits, reflect the challenges faced by the company in the current economic and sectoral environment. The absence of domestic mutual fund holdings further emphasises the cautious market sentiment surrounding the stock.

Technical Positioning and Moving Averages

Technically, Likhitha Infrastructure is trading below all major moving averages, including the short-term 5-day and 20-day averages, as well as the longer-term 50-day, 100-day, and 200-day averages. This positioning indicates a sustained bearish trend in the stock price, contrasting with the Sensex’s bullish stance, where the 50-day moving average remains above the 200-day average.

The stock’s current price level at Rs.186.6 is less than half of its 52-week high of Rs.404.25, underscoring the extent of the decline over the past year.

Conclusion

Likhitha Infrastructure’s stock reaching a 52-week low of Rs.186.6 marks a notable event in its recent trading history. The decline reflects a combination of subdued earnings performance, modest long-term growth, and technical weakness relative to the broader market and sector peers. While the Sensex and mega-cap stocks have shown resilience and positive momentum, Likhitha Infrastructure’s share price remains under pressure, highlighting the challenges faced by the company within the construction sector.

Investors and market participants observing this stock will note the divergence from broader market trends and the financial metrics that have shaped its current valuation and price movement.

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