Stock Price Movement and Market Context
On the trading day, Megri Soft Ltd’s stock price fell by 5.62%, underperforming its sector by 3.89%. This decline extended a losing streak over two consecutive days, during which the stock has lost 11.69% in value. The intraday low of Rs.81 represents the lowest price point the stock has reached in the past 52 weeks, down from its 52-week high of Rs.163.35. Notably, the stock has traded erratically, missing trading activity on one day out of the last 20 sessions, which adds to the volatility concerns.
Technical indicators also paint a challenging picture for Megri Soft Ltd. The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex, despite a late-day decline of 200.80 points to 83,352.79, remains within 3.37% of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day average, indicating a more stable medium-term trend for the benchmark index compared to Megri Soft’s stock.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Financial Performance and Valuation Metrics
Megri Soft Ltd’s financial indicators over recent periods have been subdued. The company reported flat quarterly results for December 2025, with PBDIT at a low Rs.0.15 crore and PBT excluding other income at Rs.0.12 crore. Earnings per share (EPS) for the quarter stood at Rs.0.29, marking the lowest quarterly EPS recorded in recent years. These figures reflect limited profitability and constrained earnings growth.
Long-term financial trends also reveal challenges. The company’s average Return on Equity (ROE) is a modest 2.65%, indicating limited efficiency in generating shareholder returns. Net sales have grown at an annualised rate of 4.58% over the past five years, while operating profit has increased by 6.96% annually, both figures falling short of robust growth benchmarks. Additionally, the company’s ability to service debt remains weak, with an average EBIT to interest coverage ratio of 0.63, suggesting financial leverage concerns.
Valuation metrics further highlight the stock’s premium pricing relative to its fundamentals. Despite the weak ROE of 2.4%, Megri Soft Ltd trades at a Price to Book Value ratio of 1.2, which is higher than the average historical valuations of its peers in the Commercial Services & Supplies sector. This elevated valuation, combined with a 17% decline in profits over the past year, underscores the market’s cautious stance on the stock.
Comparative Performance and Market Position
Over the last 12 months, Megri Soft Ltd’s stock has delivered a negative return of 50.41%, significantly underperforming the Sensex, which posted a positive return of 9.73% during the same period. The stock’s underperformance extends beyond the one-year horizon, with returns lagging behind the BSE500 index over the last three years, one year, and three months. This persistent underperformance reflects both sector-specific pressures and company-specific factors.
Promoter holdings remain the majority shareholder stake in Megri Soft Ltd, maintaining control over corporate decisions. However, this has not translated into improved market sentiment or stock performance in recent times.
Considering Megri Soft Ltd? Wait! SwitchER has found potentially better options in Commercial Services & Supplies and beyond. Compare this micro-cap with top-rated alternatives now!
- - Better options discovered
- - Commercial Services & Supplies + beyond scope
- - Top-rated alternatives ready
Mojo Score and Analyst Ratings
Megri Soft Ltd currently holds a Mojo Score of 16.0, categorised under a Strong Sell grade as of 7 April 2025. This represents a downgrade from its previous Sell rating, reflecting deteriorated fundamentals and market outlook. The company’s market capitalisation grade stands at 4, indicating a micro-cap status with limited liquidity and market depth. These ratings align with the stock’s recent price movements and financial performance.
The stock’s day change of -5.62% on 18 Feb 2026 further emphasises the prevailing negative sentiment. The combination of weak long-term growth, modest profitability, and valuation concerns contribute to the cautious stance reflected in the Mojo grading system.
Summary of Key Concerns
In summary, Megri Soft Ltd’s stock has reached a 52-week low of Rs.81 amid a backdrop of subdued financial results, limited growth prospects, and valuation premiums relative to peers. The stock’s technical indicators remain bearish, with prices trading below all major moving averages. The company’s profitability metrics, including ROE and EBIT to interest coverage, remain below desirable levels, while recent quarterly earnings have been at historic lows.
These factors collectively explain the stock’s underperformance relative to the broader market and sector indices. While the Sensex maintains a position near its 52-week high, Megri Soft Ltd’s shares continue to face downward pressure, reflecting the challenges inherent in its financial and operational profile.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
