Recent Price Movement and Market Context
On 17 Dec 2025, Mehai Technology's share price touched Rs.1.5, its lowest level in the past year and an all-time low for the company. This price point comes after the stock experienced a consecutive five-day decline, resulting in a cumulative return of -21.47% over this period. The stock's performance today lagged behind its sector by approximately 4.43%, indicating relative weakness within the Trading & Distributors industry segment.
Mehai Technology is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a persistent bearish momentum in the stock's price action.
In contrast, the broader market has shown mixed signals. The Sensex opened 176.40 points higher but later declined by 188.98 points, closing near 84,667.28, just 0.01% lower on the day. The Sensex remains close to its 52-week high of 86,159.02, trading approximately 1.76% below that peak. Mid-cap stocks led the market with a marginal gain of 0.05% in the BSE Mid Cap index, highlighting a divergence from Mehai Technology's performance.
Long-Term and Recent Performance Analysis
Over the last 12 months, Mehai Technology's stock has recorded a return of -88.89%, a stark contrast to the Sensex's 4.93% gain during the same period. This underperformance extends beyond the one-year horizon, with the stock lagging behind the BSE500 index over the past three years, one year, and three months.
The stock's 52-week high was Rs.19.26, underscoring the magnitude of the decline to the current low of Rs.1.5. This represents a substantial erosion of market value and investor capital over the past year.
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Financial Metrics Reflecting Current Concerns
Mehai Technology's financial indicators reveal areas of concern that have likely contributed to the stock's decline. The company’s average Return on Capital Employed (ROCE) stands at 5.54%, indicating limited profitability relative to the total capital invested, including both equity and debt. Similarly, the average Return on Equity (ROE) is 3.86%, reflecting modest returns generated on shareholders’ funds.
Debt servicing capacity appears constrained, with a Debt to EBITDA ratio of 3.59 times. This level suggests a relatively high debt burden compared to earnings before interest, taxes, depreciation, and amortisation, which may weigh on financial flexibility.
These metrics collectively point to subdued efficiency in capital utilisation and profitability, factors that often influence market sentiment and valuation.
Sales and Profit Growth Trends
Despite the challenges reflected in stock price and profitability ratios, Mehai Technology has demonstrated notable growth in certain operational areas. Net sales have expanded at an annual rate of 193.15%, while operating profit has grown at 159.48% over the long term. The company has reported positive results for five consecutive quarters, signalling some consistency in earnings generation.
In the latest six-month period, Profit After Tax (PAT) reached Rs.2.68 crore, showing a growth rate of 182.11%. Quarterly net sales stood at Rs.22.00 crore, with a growth rate of 116.32%, and Profit Before Tax less Other Income (PBT less OI) was Rs.2.15 crore, growing at 91.96%. These figures indicate that while the stock price has declined sharply, the company’s top-line and bottom-line have shown expansion in recent periods.
Valuation and Market Positioning
Mehai Technology’s valuation metrics present a mixed picture. The company’s ROCE of 8.9 and an Enterprise Value to Capital Employed ratio of 0.9 suggest an attractive valuation relative to capital employed. The stock is trading at a discount compared to the average historical valuations of its peers, which may reflect market caution given the company’s financial profile and stock performance.
Majority ownership remains with promoters, which can influence strategic decisions and company direction.
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Summary of Market and Stock Dynamics
Mehai Technology’s stock has experienced a pronounced decline over the past year, culminating in a 52-week low of Rs.1.5. The stock’s underperformance relative to the Sensex and its sector highlights ongoing challenges in market valuation and investor confidence. Key financial ratios such as ROCE, ROE, and Debt to EBITDA point to limited profitability and elevated leverage, which may have contributed to the subdued market response.
Conversely, the company’s growth in net sales and profits over recent quarters indicates operational progress in certain areas. The valuation metrics suggest the stock is trading at a discount compared to peers, reflecting a cautious market stance.
Overall, Mehai Technology’s current market position is shaped by a combination of financial performance indicators and broader market conditions, with the stock’s recent price action underscoring the challenges it faces within the Trading & Distributors sector.
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