Price Movement and Market Context
On 2 Feb 2026, Morarka Finance Ltd’s stock opened with a gap up of 2.39%, reaching an intraday high of Rs.62.51. However, the momentum reversed sharply, and the stock declined to an intraday low of Rs.57.55, representing a 5.73% drop from the previous close. This low marks the weakest price level for the stock in the past year, underscoring persistent downward pressure.
The stock underperformed its sector by 5.29% on the day, while the broader market, represented by the Sensex, recovered from a negative start to close higher by 0.52%, trading at 81,146.51 points. Despite the Sensex’s resilience, Morarka Finance’s shares remain subdued, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.
Long-Term Performance and Valuation Metrics
Over the past year, Morarka Finance Ltd’s stock has delivered a negative return of 59.65%, starkly contrasting with the Sensex’s positive 4.70% gain over the same period. The stock’s 52-week high was Rs.146.50, highlighting the extent of the decline from its peak.
Despite the weak price performance, the company’s valuation metrics present a mixed picture. The stock trades at a price-to-book value of 0.3, which is considered attractive relative to its peers’ historical averages. This valuation reflects the market’s cautious stance given the company’s financial results and growth trajectory.
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Financial Performance and Profitability
Morarka Finance Ltd’s financial results have shown subdued growth and profitability. The company’s net sales have declined at an annual rate of 6.18%, while operating profit has decreased by 6.78% annually, indicating contraction in core business operations over the long term.
In the most recent quarter ending December 2025, the company reported a profit after tax (PAT) of Rs.0.07 crore, a steep fall of 85.0% compared to the previous four-quarter average. Earnings per share (EPS) for the quarter stood at Rs.0.16, the lowest recorded in recent periods, reflecting the pressure on profitability.
Return on Equity and Market Sentiment
The company’s return on equity (ROE) remains weak, averaging 2.01% over the long term and dropping to 1.7% in recent assessments. This low ROE indicates limited efficiency in generating returns from shareholders’ equity, which has contributed to the stock’s subdued market performance.
Morarka Finance Ltd’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 24 Nov 2025. The market capitalisation grade is 4, reflecting the company’s relatively modest size within the NBFC sector.
Comparative Performance and Sector Positioning
Over the last three years, the stock has consistently underperformed the BSE500 index, as well as its NBFC sector peers. The cumulative returns over one year and three months have been negative, reinforcing the trend of underperformance relative to broader market benchmarks.
While the NBFC sector has seen mixed results, Morarka Finance’s share price decline contrasts with the broader market’s recovery and the Sensex’s positive trajectory, which has been led by mega-cap stocks.
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Shareholding and Corporate Structure
The majority shareholding in Morarka Finance Ltd is held by promoters, maintaining a concentrated ownership structure. This may influence strategic decisions and the company’s approach to addressing its financial and market challenges.
Despite the current valuation attractiveness, the company’s financial metrics and market performance indicate a cautious outlook, with the stock’s recent 52-week low underscoring the ongoing pressures faced by the firm.
Summary of Key Metrics
To summarise, Morarka Finance Ltd’s key performance indicators as of early February 2026 are as follows:
- 52-Week Low Price: Rs.57.55
- 52-Week High Price: Rs.146.50
- One-Year Stock Return: -59.65%
- Sensex One-Year Return: +4.70%
- Return on Equity (ROE): 2.01% (long term average), 1.7% (recent)
- Price to Book Value: 0.3
- Profit After Tax (Latest Quarter): Rs.0.07 crore (-85.0% vs previous average)
- Earnings Per Share (EPS) Latest Quarter: Rs.0.16
- Mojo Score: 23.0 (Strong Sell)
- Market Cap Grade: 4
These figures illustrate the stock’s current valuation and financial standing within the NBFC sector, highlighting the challenges that have contributed to its recent price decline.
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