Key Events This Week
Feb 9: Technical upgrade to Sell rating announced
Feb 11: New 52-week high at Rs.409.7 amid strong volume
Feb 11: Q3 FY26 results reveal revenue collapse despite profit cushion
Feb 12: Fresh 52-week high at Rs.430 with continued momentum
Feb 13: Week closes at Rs.437.05, another 52-week high
9 February 2026: Technical Upgrade Sparks Initial Interest
Majestic Auto Ltd’s week began with a technical upgrade by MarketsMOJO, moving the rating from 'Strong Sell' to 'Sell' on 9 February 2026. This upgrade was driven by improved technical indicators, including a bullish weekly MACD and daily moving averages, despite persistent weak fundamentals such as declining operating profits and low return on equity. The stock closed at Rs.352.65, down 1.20% on the day, while the Sensex gained 1.04%, reflecting cautious investor sentiment amid the rating change.
10 February 2026: Early Signs of Recovery with Price Rebound
Following the upgrade, the stock rebounded strongly on 10 February, closing at Rs.360.05, a 2.10% gain. This rise contrasted with the Sensex’s modest 0.25% increase, signalling early positive momentum. Volume increased to 3,963 shares, indicating growing investor interest. The technical upgrade appeared to have a stabilising effect, setting the stage for the dramatic gains that followed.
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11 February 2026: New 52-Week High and Mixed Financial Results
On 11 February, Majestic Auto Ltd surged to a new 52-week high of Rs.409.7, marking a 13.79% intraday increase and a two-day cumulative return of 12.01%. This rally was accompanied by a sharp rise in volume to 98,381 shares, reflecting heightened market activity. The stock outperformed its sector by 10.52% and traded above all key moving averages, signalling strong technical momentum.
However, the same day’s Q3 FY26 results revealed a concerning revenue collapse despite a profit cushion. The company’s revenue fell sharply, raising questions about the sustainability of earnings growth. This dichotomy between price action and fundamentals highlighted the market’s focus on technical strength over underlying financial health in the short term.
12 February 2026: Continued Rally with Another 52-Week High
Majestic Auto Ltd extended its winning streak on 12 February, hitting a fresh 52-week high of Rs.430, a 10.19% gain from the previous close. The stock opened with a gap up of 9.67%, supported by robust buying interest and a volume surge to 129,421 shares. This three-day rally delivered a cumulative return of 20.09%, significantly outpacing the broader market and its sector peers by 9.03% on the day.
Despite the Sensex declining by 0.56%, Majestic Auto’s technical indicators remained bullish, trading above all major moving averages. The stock’s one-year return of 10.82% also surpassed the Sensex’s 10.17%, underscoring its relative strength amid mixed market conditions.
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13 February 2026: Week Closes at Rs.437.05 with Sustained Momentum
The week concluded on 13 February with Majestic Auto Ltd reaching yet another 52-week high at Rs.437.05, closing up 1.53% on the day despite a broader market decline of 1.40%. The stock’s one-year price appreciation now stands at 13.92%, comfortably outperforming the Sensex’s 8.92% gain. The minor intraday pullback following three consecutive days of gains is typical after rapid advances and does not detract from the overall bullish trend.
Technical indicators remain supportive, with the stock trading above all key moving averages. The Mojo Score improved to 44.0, maintaining a 'Sell' rating but reflecting a cautious upgrade from the previous 'Strong Sell'. Market capitalisation grade remains at 4, indicating a moderate valuation relative to peers.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.352.65 | -1.20% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.360.05 | +2.10% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.390.25 | +8.39% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.430.45 | +10.30% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.437.05 | +1.53% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: Majestic Auto Ltd’s 22.44% weekly gain and multiple new 52-week highs demonstrate strong technical momentum and investor interest. The upgrade from 'Strong Sell' to 'Sell' reflects improving technical indicators, including bullish MACD and moving averages. The stock’s outperformance relative to the Sensex and its sector highlights its resilience amid mixed market conditions.
Cautionary Notes: Despite the price rally, fundamental challenges persist. The company reported a revenue collapse in Q3 FY26, raising concerns about sustainable earnings growth. Low return on equity and weak debt servicing ratios continue to weigh on the stock’s quality metrics. The valuation remains elevated relative to fundamentals, suggesting caution for longer-term investors.
Conclusion
Majestic Auto Ltd’s week was characterised by a striking divergence between technical strength and fundamental weakness. The stock’s 22.44% surge and string of new 52-week highs underscore a powerful short-term rally fuelled by improved technical ratings and market momentum. However, the underlying financial performance remains subdued, with revenue declines and profitability pressures signalling ongoing risks.
Investors should note the cautious upgrade in rating and the stock’s elevated valuation despite weak fundamentals. While the technical outlook is positive, the fundamental challenges suggest that the stock’s recent gains may be vulnerable to correction if earnings do not improve. The coming weeks will be critical in determining whether Majestic Auto Ltd can sustain this momentum or if the rally is a technical reprieve amid deeper operational issues.
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