Stock Price Movement and Market Context
On 2 December 2025, Mehai Technology's share price touched its lowest level in the past year, closing at Rs.1.71. This represents a stark contrast to its 52-week high of Rs.19.26, highlighting the extent of the stock's decline over the last twelve months. The stock's performance today underperformed its sector by 3.78%, continuing a trend of relative weakness within the Trading & Distributors industry.
The broader market environment presents a mixed backdrop. The Sensex opened lower at 85,325.51, down 316.39 points or 0.37%, and was trading at 85,516.61, a 0.15% decline at the time of reporting. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 0.75% away, supported by bullish moving averages with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks showed resilience, with the BSE Mid Cap index gaining 0.27% on the day.
In contrast, Mehai Technology is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward pressure on the stock price.
Financial Performance and Profitability Metrics
Over the past year, Mehai Technology's stock has delivered a return of -83.72%, markedly underperforming the Sensex, which recorded a positive return of 6.54% over the same period. This underperformance extends beyond the short term, with the stock also lagging the BSE500 index over one-year and three-month horizons.
Profitability indicators reveal modest returns relative to capital employed and shareholders’ equity. The company’s average Return on Capital Employed (ROCE) stands at 5.54%, indicating limited profitability generated per unit of total capital invested. Similarly, the average Return on Equity (ROE) is 3.86%, reflecting subdued returns 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.
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Sales Growth and Recent Profitability Trends
Despite the stock’s price challenges, Mehai Technology has demonstrated notable growth in its top-line and profitability metrics over recent periods. Net sales for the latest six months reached Rs.40.33 crores, reflecting a growth rate of 231.66%. Operating profit has expanded at an annual rate of 159.48%, signalling operational scale gains.
Profit after tax (PAT) for the latest six months stood at Rs.2.68 crores, growing by 182.11%, while profit before tax excluding other income (PBT less OI) for the quarter was Rs.2.15 crores, up by 91.96%. The company has reported positive results for five consecutive quarters, indicating a consistent earnings trajectory in recent times.
Valuation metrics show an enterprise value to capital employed ratio of 1, with a ROCE of 8.9%, suggesting an attractive valuation relative to capital utilisation. The stock is trading at a discount compared to its peers’ average historical valuations. Over the past year, profits have risen by 700.9%, despite the stock’s negative return, resulting in a price-to-earnings-to-growth (PEG) ratio of 0.1.
Shareholding and Market Capitalisation
Mehai Technology is classified within the Trading & Distributors sector and industry. The company’s market capitalisation grade is 4, reflecting its size and market presence. Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.
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Summary of Price and Performance Trends
Mehai Technology’s share price has been on a persistent decline, with a 21-day losing streak culminating in the new 52-week low of Rs.1.71. This represents a significant contraction from the stock’s peak price of Rs.19.26 within the last year. The stock’s current trading levels are below all major moving averages, underscoring the prevailing downward momentum.
While the broader market indices, including the Sensex and BSE Mid Cap, have shown relative strength and resilience, Mehai Technology’s performance has diverged, reflecting company-specific factors impacting investor sentiment and valuation.
Financial indicators point to modest returns on capital and equity, alongside a relatively high debt burden compared to earnings. However, recent sales and profit growth figures suggest some operational progress, with positive quarterly results over the last five periods.
Investors and market participants may note the contrast between the company’s improving earnings and the stock’s subdued price performance, which continues to reflect caution in the trading and distributors sector.
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