Stock Price Movement and Market Context
On 25 Feb 2026, Morarka Finance Ltd (Stock ID: 839747), operating within the Non Banking Financial Company (NBFC) sector, recorded a new 52-week low of Rs.57. This price level represents a substantial drop from its 52-week high of Rs.138.15, reflecting a year-long decline of 44.86%. The stock underperformed its sector by 0.44% today and remains trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In contrast, the broader market benchmark, the Sensex, continued its upward trajectory, closing at 82,868.60 points, up 0.78% for the day and just 3.97% shy of its own 52-week high of 86,159.02. Mega-cap stocks led the rally, underscoring a market environment where Morarka Finance’s stock performance remains notably subdued.
Financial Performance and Fundamental Metrics
Morarka Finance’s financial indicators reveal persistent weaknesses that have contributed to the stock’s decline. The company’s average Return on Equity (ROE) stands at a modest 2.01%, reflecting limited profitability relative to shareholder equity. This figure deteriorated slightly to 1.7 in recent assessments, underscoring ongoing challenges in generating returns.
Net sales have contracted at an annual rate of -6.18%, while operating profit has declined by -6.78% over the long term. The latest quarterly results for December 2025 further illustrate this trend, with the Profit After Tax (PAT) plummeting by 85.0% to Rs.0.07 crore compared to the previous four-quarter average. Earnings Per Share (EPS) also hit a low of Rs.0.16, marking the weakest quarterly performance in recent periods.
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Comparative Performance and Market Positioning
Over the past year, Morarka Finance has generated a negative return of -44.86%, significantly lagging behind the Sensex’s positive 11.07% gain. The stock has also underperformed the broader BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating a consistent trend of underperformance relative to the market and its peers.
Despite these challenges, the stock maintains an attractive valuation on certain metrics. It trades at a Price to Book Value ratio of 0.2, suggesting that the market values the company at a discount relative to its book value. This valuation is broadly in line with historical averages for its peer group, reflecting a fair price level given the company’s current fundamentals.
Shareholding and Sectoral Context
The majority ownership of Morarka Finance remains with its promoters, which may influence strategic decisions and capital allocation. The company operates within the NBFC sector, which has seen varied performance across different players, with some segments benefiting from market tailwinds while others face headwinds due to credit and liquidity conditions.
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Mojo Score and Analyst Ratings
Morarka Finance’s current Mojo Score stands at 23.0, categorising it as a Strong Sell. This rating was upgraded from a Sell to Strong Sell on 24 Nov 2025, reflecting a deterioration in the company’s fundamental and market outlook. The Market Cap Grade is 4, indicating a relatively modest market capitalisation within its sector.
The stock’s recent price action, combined with its financial metrics and sectoral positioning, underscores the challenges faced by Morarka Finance in regaining investor confidence and market momentum.
Summary of Key Metrics
To summarise, Morarka Finance Ltd’s stock has reached a new 52-week low of Rs.57, down from a high of Rs.138.15 within the last year. The company’s financial performance has been marked by declining sales and profits, with a notably weak quarterly PAT of Rs.0.07 crore and EPS of Rs.0.16. The stock trades below all major moving averages and has underperformed both its sector and the broader market indices. Despite a low Price to Book Value ratio, the overall fundamental indicators and market sentiment remain subdued.
While the Sensex and mega-cap stocks continue to show strength, Morarka Finance’s position within the NBFC sector and its financial results have contributed to its current valuation and rating status.
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