Stock Price Movement and Market Context
On 2 Feb 2026, Medi Caps Ltd's share price touched Rs.25.05, the lowest level in the past year, reflecting a cumulative decline of 46.97% over the last 12 months. This contrasts sharply with the Sensex, which has delivered a positive return of 5.37% during the same period. Despite the broader market's recovery—where the Sensex rebounded by 1,110.78 points after an initial dip and currently trades at 81,666.46—the stock remains under pressure.
Today, Medi Caps outperformed its sector by 1.04%, and the stock showed a modest gain following six consecutive days of decline. However, it continues to trade below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum.
Financial Performance and Profitability Metrics
The company’s financial indicators reveal ongoing challenges. For the nine months ended September 2025, net sales contracted by 47.76% to Rs.11.68 crores. The quarterly profit after tax (PAT) registered a loss of Rs.1.82 crores, a deterioration of 107.4% compared to the previous four-quarter average. Cash and cash equivalents stood at a low Rs.0.09 crores as of the half-year mark, underscoring liquidity constraints.
Return on Equity (ROE) averaged a modest 1.46%, indicating limited profitability relative to shareholders’ funds. The company’s ability to service debt remains weak, with an average EBIT to interest ratio of -1.38, reflecting negative earnings before interest and taxes relative to interest expenses.
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Valuation and Risk Considerations
Medi Caps Ltd’s stock is classified with a Mojo Score of 3.0 and a Mojo Grade of Strong Sell as of 1 Feb 2025, downgraded from Sell. This reflects the company’s weak long-term fundamental strength and elevated risk profile. The stock’s valuation appears stretched relative to its historical averages, with a negative EBITDA contributing to its classification as a risky investment within its sector.
Over the past year, the company’s profits have declined by 278.5%, a stark indicator of deteriorating earnings quality. The stock has consistently underperformed the BSE500 index over the last three annual periods, reinforcing a trend of relative weakness.
Shareholding and Sectoral Position
The majority shareholding remains with the promoters, maintaining control over corporate decisions. Medi Caps operates within the Pharmaceuticals & Biotechnology sector, which has seen mixed performance, with mega-cap stocks leading recent market gains. Despite sectoral momentum, Medi Caps has not mirrored this trend, continuing to lag behind peers and broader indices.
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Summary of Key Metrics
To summarise, Medi Caps Ltd’s stock price has declined from a 52-week high of Rs.53.76 to Rs.25.05, reflecting a near 53.4% drop. The company’s market cap grade stands at 4, indicating a relatively small market capitalisation. Despite a slight recovery today after a prolonged downtrend, the stock remains below all major moving averages, signalling continued bearish sentiment.
Financially, the company faces challenges with shrinking sales, negative profitability, and limited cash reserves. Its ability to cover interest expenses is constrained, and returns to shareholders remain subdued. These factors collectively contribute to the stock’s current valuation and risk profile within the Pharmaceuticals & Biotechnology sector.
Market Environment
The broader market environment has been supportive, with the Sensex recovering strongly after an initial negative opening. Mega-cap stocks have led the gains, while mid and small-cap stocks, including Medi Caps, have struggled to keep pace. The Sensex’s 50-day moving average remains above its 200-day average, signalling a generally positive medium-term trend for the market overall.
Conclusion
Medi Caps Ltd’s recent 52-week low at Rs.25.05 underscores the company’s ongoing challenges in maintaining growth and profitability. The stock’s performance over the past year, combined with its financial metrics, highlights a period of sustained underperformance relative to the broader market and sector peers. While today’s modest gain breaks a six-day losing streak, the stock remains in a subdued position within its industry and market capitalisation segment.
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