Maithan Alloys Gains 5.18%: Technical Upgrades and Valuation Shifts Drive Momentum

Strong Start on 9 February: Outperforming the Market

Maithan Alloys began the week on a positive note, closing at ₹1,055.70 on 9 February 2026, a gain of 3.55% from the previous Friday’s close of ₹1,019.55. This rise outpaced the Sensex’s 1.04% gain to 37,113.23, signalling early strength. The volume of 1,697 shares traded indicated healthy investor interest. This initial momentum set the tone for the week, reflecting improving technical conditions despite ongoing financial challenges faced by the company.

10 February: Mojo Grade Upgrade and Mildly Bullish Momentum

On 10 February, Maithan Alloys’ Mojo Grade was upgraded from Sell to Hold by MarketsMOJO, reflecting improved technical indicators despite persistent financial headwinds. The stock closed at ₹1,043.95, down 1.11% intraday but still maintaining strength relative to the Sensex’s 0.25% gain. The upgrade was driven by a shift in technical momentum from mildly bearish to mildly bullish, supported by positive weekly MACD and KST oscillator readings. This change suggested a potential inflection point, with the stock trading comfortably above its 52-week low of ₹834.05 and below the 52-week high of ₹1,265.00.

The technical outlook was nuanced: while weekly momentum indicators improved, monthly MACD remained mildly bearish, and daily moving averages were still mildly bearish, indicating some short-term consolidation. The Relative Strength Index (RSI) hovered in neutral territory, signalling no immediate overbought or oversold conditions. This mixed technical picture warranted cautious optimism among investors.

12 February: Momentum Shifts to Sideways Amid Consolidation

By 12 February, Maithan Alloys’ technical momentum transitioned from mildly bullish to a sideways trend, reflecting a pause in the previous upward movement. The stock closed at ₹1,075.20, up 2.71% on the day, despite the Sensex declining by 0.56% to 37,049.40. This price action indicated relative strength amid broader market weakness.

Technical indicators showed mixed signals: weekly MACD remained mildly bullish, but monthly MACD was still bearish. Bollinger Bands on the weekly chart turned bullish, suggesting increased volatility and potential upward pressure, while monthly bands indicated sideways movement. The Know Sure Thing (KST) oscillator was mildly bullish weekly and bullish monthly, hinting at strengthening medium-term momentum. However, On-Balance Volume (OBV) remained flat, signalling a lack of volume confirmation for a strong directional move.

Price traded within a range of ₹1,021.30 to ₹1,049.95, showing relative stability. The sideways momentum suggested consolidation, with investors awaiting clearer signals before committing to a directional bias.

13 February: Mildly Bullish Momentum and Valuation Shift

On the final trading day of the week, 13 February, Maithan Alloys exhibited a shift back to mildly bullish momentum, closing at ₹1,072.40, down marginally by 0.26% from the previous day’s close. The stock’s intraday range of ₹1,046.20 to ₹1,079.95 reflected strong buying interest near the high. This price movement aligned with the technical trend change from sideways to mildly bullish, supported by a Mojo Grade upgrade to Hold and a Mojo Score of 50.0.

Despite the recent gains, daily moving averages remained mildly bearish, indicating the uptrend was still in a formative stage. Weekly MACD was mildly bullish, while monthly MACD remained bearish, underscoring the need for longer-term confirmation. RSI remained neutral, and Bollinger Bands on weekly and monthly charts were bullish, signalling upward price pressure. The Know Sure Thing (KST) indicator was mildly bullish on both weekly and monthly scales, reinforcing the positive momentum narrative.

Valuation metrics shifted from attractive to fair pricing, with a price-to-earnings ratio of 7.10 and price-to-book value of 0.76. These figures position Maithan Alloys below the Indian Metals industry average P/E of 21.36, indicating relative valuation advantage despite a moderation from previous levels. Enterprise value multiples such as EV/EBIT and EV/EBITDA also suggest reasonable pricing within the sector context.

Weekly Price Performance: Maithan Alloys vs Sensex

Key Takeaways

Positive Signals: Maithan Alloys outperformed the Sensex by a wide margin, gaining 5.18% versus the benchmark’s 0.54% decline. The upgrade to a Hold rating and improved technical momentum from mildly bearish to mildly bullish reflect stabilising price action and renewed investor interest. Valuation metrics remain attractive relative to the broader ferrous metals sector, with a P/E of 7.10 and P/BV of 0.76, supporting a fair price assessment. The stock’s long-term returns remain impressive, with a ten-year gain exceeding 1,000%, underscoring its resilience.

Cautionary Signals: Despite short-term momentum improvements, monthly MACD and Dow Theory indicators remain cautious, signalling that a sustained long-term uptrend is not yet confirmed. Daily moving averages are still mildly bearish, suggesting potential consolidation or profit-taking phases. Volume indicators such as OBV show neutral trends, indicating that price moves lack strong volume confirmation. Additionally, the company’s recent financial performance has been challenged by declining sales and rising interest expenses, which temper enthusiasm.

Conclusion

Maithan Alloys Ltd. demonstrated a strong weekly performance, driven by technical upgrades and relative strength against the Sensex. The MarketsMOJO upgrade to Hold and the shift to mildly bullish momentum signal cautious optimism, supported by fair valuation metrics and solid long-term returns. However, mixed signals from longer-term technical indicators and neutral volume trends counsel prudence. Investors should monitor key technical levels and volume confirmation closely to assess the sustainability of the current rally. Overall, Maithan Alloys appears to be in a consolidation phase with potential for moderate appreciation, balancing risk and opportunity amid sectoral and market uncertainties.

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