Recent Price Movement and Market Context
On 4 December 2025, Mehai Technology’s stock price touched Rs.1.55, the lowest level recorded in the past year and also the lowest since its listing. This decline contrasts sharply with the broader market, where the Sensex recovered from an initial negative opening to close 0.25% higher at 85,319.78 points, just 0.98% shy of its 52-week high of 86,159.02. The Sensex’s positive momentum was supported by mega-cap stocks and bullish moving averages, with the 50-day moving average trading above the 200-day moving average, signalling overall market strength.
In comparison, Mehai Technology underperformed its sector by 5.25% on the day, continuing a trend of relative weakness. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a persistent bearish trend across short, medium, and long-term timeframes.
Long-Term Performance and Valuation Metrics
Over the past year, Mehai Technology’s stock has delivered a return of -86.30%, a stark contrast to the Sensex’s 5.39% gain over the same period. The stock’s 52-week high was Rs.19.26, highlighting the extent of the decline. This performance places Mehai Technology well below the BSE500 index in returns over the last one year, three years, and the most recent three months.
From a valuation perspective, the company’s Return on Capital Employed (ROCE) stands at 5.54%, reflecting modest profitability relative to the total capital invested. The Return on Equity (ROE) is recorded at 3.86%, indicating limited returns generated on shareholders’ funds. Additionally, the company’s Debt to EBITDA ratio is 3.59 times, suggesting a relatively high debt burden compared to earnings before interest, taxes, depreciation, and amortisation.
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Financial Growth Indicators and Profitability Trends
Despite the stock’s price decline, 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%, while profit after tax (PAT) for the latest six months stood at Rs.2.68 crores, growing at 182.11%. Profit before tax excluding other income (PBT less OI) for the quarter was Rs.2.15 crores, with a growth rate of 91.96%.
The company has reported positive results for five consecutive quarters, indicating a consistent upward trend in earnings despite the stock’s market performance. The ROCE for the latest period is noted at 8.9%, accompanied by an enterprise value to capital employed ratio of 0.9, which suggests a valuation discount relative to peers’ historical averages.
Shareholding and Market Capitalisation
Mehai Technology’s majority shareholding is held by promoters, maintaining a concentrated ownership structure. The company’s market capitalisation grade is rated at 4, reflecting its size and market presence within the Trading & Distributors sector.
Sector and Industry Positioning
Operating within the Trading & Distributors industry and sector, Mehai Technology’s stock performance has diverged significantly from sectoral trends. While the broader sector and market indices have shown resilience and growth, the stock’s prolonged decline and trading below all major moving averages highlight challenges in market sentiment and valuation.
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Summary of Key Metrics
To summarise, Mehai Technology’s stock price has reached Rs.1.55, a 52-week and all-time low, following a 21-day losing streak and a one-year return of -86.30%. The company’s financial indicators show growth in sales and profits, yet profitability ratios such as ROCE and ROE remain modest. The elevated Debt to EBITDA ratio points to a higher leverage level relative to earnings. The stock’s valuation is currently below peer averages, with trading levels beneath all major moving averages.
While the broader market and sector indices have shown positive momentum, Mehai Technology’s stock continues to reflect a cautious market assessment. The company’s recent financial results indicate growth in core operations, but this has not translated into upward price movement in the equity market.
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