Maithan Alloys Falls 4.86%: 3 Key Factors Driving the Weekly Decline

Jan 11 2026 04:00 PM IST
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Maithan Alloys Ltd. experienced a challenging week on the bourses, with its share price declining by 4.86% from ₹1,016.30 to ₹966.90 between 5 and 9 January 2026. This underperformance contrasted with the broader Sensex, which fell 2.62% over the same period, signalling heightened selling pressure on the stock amid deteriorating fundamentals, bearish technical signals, and valuation shifts. The week was marked by a significant downgrade to a Strong Sell rating, mixed technical momentum, and a nuanced improvement in valuation attractiveness, all contributing to the stock’s volatile trajectory.




Key Events This Week


Jan 5: Stock opens at ₹1,011.40, down 0.48%


Jan 7: Brief recovery to ₹1,017.35 (+0.62%) amid positive volume


Jan 8: Sharp decline to ₹992.55 (-2.44%) following technical weakness


Jan 9: Downgrade to Strong Sell and further drop to ₹966.90 (-2.58%)





Week Open
Rs.1,016.30

Week Close
Rs.966.90
-4.86%

Week High
Rs.1,017.35

vs Sensex
-2.24%



Monday, 5 January 2026: Weak Start Amid Broader Market Decline


Maithan Alloys opened the week at ₹1,011.40, down 0.48% from the previous Friday’s close of ₹1,016.30. The decline was in line with the Sensex’s 0.18% drop to 37,730.95, reflecting cautious investor sentiment at the start of the year. Trading volume was modest at 1,666 shares, indicating limited buying interest. The stock’s performance was weighed down by early concerns over its financial health and sector headwinds, setting a subdued tone for the week.



Tuesday, 6 January 2026: Marginal Decline Amid Continued Market Pressure


The stock price edged down slightly by 0.03% to ₹1,011.10, while the Sensex fell 0.19% to 37,657.70. Volume increased to 2,173 shares, but the lack of meaningful price movement suggested investor indecision. The market awaited further clarity on the company’s outlook, with no major news catalysts emerging on this day. The stock remained under pressure, trading below key moving averages, signalling a cautious technical setup.




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Wednesday, 7 January 2026: Brief Recovery on Increased Volume


Maithan Alloys saw a modest rebound, closing at ₹1,017.35, up 0.62% on the day. This was accompanied by a notable increase in volume to 3,301 shares, suggesting some short-term buying interest. The Sensex also edged up slightly by 0.03% to 37,669.63. Despite this uptick, technical indicators remained mixed, with the stock still trading below its 50-day and 200-day moving averages. The recovery was short-lived, as broader market concerns and company-specific challenges persisted.



Thursday, 8 January 2026: Sharp Decline Following Bearish Technical Signals


The stock plunged 2.44% to ₹992.55 amid a sharp market sell-off, with the Sensex falling 1.41% to 37,137.33. Volume dropped to 873 shares, reflecting cautious trading. This decline coincided with a marked deterioration in technical momentum, as key indicators such as the MACD turned bearish on weekly and monthly charts. The stock’s price approached the lower Bollinger Band, signalling increased volatility and downside risk. Investors reacted to the emerging bearish trend and weak financial outlook, intensifying selling pressure.



Friday, 9 January 2026: Downgrade to Strong Sell and Continued Price Pressure


Maithan Alloys closed the week at ₹966.90, down 2.58% on the day and 4.86% for the week. The Sensex also declined 0.89% to 36,807.62. The key event was the MarketsMOJO downgrade of the stock’s rating from Sell to Strong Sell, citing weak financials, deteriorating technicals, and cautious valuation outlook. The company’s Mojo Score fell to 26.0, reflecting heightened risk. Despite an improved valuation grade from very attractive to attractive, the downgrade underscored persistent challenges, including a 22.38% year-on-year drop in net sales and a significant quarterly loss of ₹120.95 crore. The absence of institutional support further dampened sentiment.



















































Date Stock Price Day Change Sensex Day Change
2026-01-05 Rs.1,011.40 -0.48% 37,730.95 -0.18%
2026-01-06 Rs.1,011.10 -0.03% 37,657.70 -0.19%
2026-01-07 Rs.1,017.35 +0.62% 37,669.63 +0.03%
2026-01-08 Rs.992.55 -2.44% 37,137.33 -1.41%
2026-01-09 Rs.966.90 -2.58% 36,807.62 -0.89%



Key Takeaways from the Week


Bearish Technical Momentum: The stock’s technical indicators shifted decisively bearish, with the MACD confirming downward momentum on weekly and monthly charts. The price trading below key moving averages and near the lower Bollinger Band signals continued downside risk.


Financial Weakness and Downgrade: The MarketsMOJO downgrade to Strong Sell was driven by weak quarterly results, including a 22.38% decline in net sales and a substantial loss of ₹120.95 crore in profit after tax. Rising interest expenses and deteriorating earnings quality further weighed on sentiment.


Valuation Attractiveness Amid Challenges: Despite the negative outlook, valuation metrics improved slightly, with the stock trading at a low P/E of 6.50 and a P/BV of 0.70, well below industry averages. This suggests some price attractiveness for value-oriented investors, though risks remain elevated.




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Conclusion: A Week Marked by Heightened Risks and Mixed Signals


Maithan Alloys Ltd.’s performance over the week ending 9 January 2026 reflected a complex interplay of deteriorating fundamentals, bearish technical trends, and valuation shifts. The stock’s 4.86% decline outpaced the Sensex’s 2.62% fall, underscoring its vulnerability amid sectoral and company-specific challenges. The downgrade to a Strong Sell rating by MarketsMOJO highlighted significant concerns over financial health and technical momentum, while the improved valuation metrics offered a modest silver lining for value investors.


Investors should remain cautious given the prevailing negative momentum and weak earnings profile. The stock’s underperformance relative to the broader market and peers suggests that risks remain elevated in the near term. Monitoring upcoming financial disclosures and technical developments will be crucial for assessing any potential recovery or further deterioration in the stock’s outlook.






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