Key Events This Week
Feb 9: Stock opens at Rs.21.31, down 1.43% amid broader Sensex gains
Feb 10: Sharp rebound with 6.52% gain on heavy volume
Feb 12: Q3 FY26 results reveal mounting losses
Feb 13: Valuation shifts prompt caution; stock closes down 5.57%
Monday, 9 February: Opening Dip Amid Market Strength
Motor & General Finance Ltd began the week at Rs.21.31, down 1.43% from the previous close of Rs.21.62. This decline contrasted with the Sensex’s 1.04% gain to 37,113.23, reflecting a cautious investor stance towards the stock despite broader market optimism. The low trading volume of 517 shares suggested limited participation, possibly awaiting clarity on upcoming corporate developments.
Tuesday, 10 February: Strong Recovery on Heavy Volume
The stock rebounded sharply on 10 February, surging 6.52% to close at Rs.22.70 on a significant volume increase to 9,638 shares. This rally outperformed the Sensex’s modest 0.25% gain, signalling renewed investor interest. The jump may have been driven by speculative positioning ahead of the company’s quarterly results, as market participants anticipated potential catalysts.
Wednesday, 11 February: Continued Gains Amid Rising Volumes
Momentum carried into 11 February, with the share price advancing another 3.57% to Rs.23.51. Volume surged dramatically to 124,074 shares, indicating strong trading activity. The Sensex rose marginally by 0.13% to 37,256.72, underscoring the stock’s outperformance. This price action suggested optimism ahead of the earnings announcement, with investors positioning for positive surprises or a turnaround narrative.
Thursday, 12 February: Q3 FY26 Results Disappoint, Losses Mount
On 12 February, Motor & General Finance Ltd released its Q3 FY26 results, revealing mounting losses and persistent struggles in its core business. Despite this, the stock managed a modest 0.85% gain to Rs.23.71 on volume of 6,202 shares. The Sensex declined 0.56% to 37,049.40, highlighting the stock’s relative resilience. However, the results underscored operational challenges, with negative returns on capital and a deeply negative EV/EBITDA ratio of -91.65 signalling ongoing profitability issues.
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Friday, 13 February: Valuation Shifts Prompt Caution, Stock Retreats
Following the earnings release, the stock retreated sharply on 13 February, closing at Rs.22.39, down 5.57% on volume of 1,505 shares. This decline outpaced the Sensex’s 1.40% drop to 36,532.48, reflecting investor caution amid valuation concerns. The company’s price-to-earnings ratio stood at a lofty 60.38, contributing to a downgrade in its valuation grade from attractive to fair. Despite a moderate price-to-book value of 1.19, the deeply negative EV/EBITDA ratio and negative return on capital employed (-2.42%) raised red flags about the sustainability of current valuations.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.21.31 | -1.43% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.22.70 | +6.52% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.23.51 | +3.57% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.23.71 | +0.85% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.22.39 | -5.57% | 36,532.48 | -1.40% |
Key Takeaways from the Week
The week’s price action for Motor & General Finance Ltd was characterised by a strong midweek rally followed by a sharp correction after earnings. The stock’s 3.56% weekly gain significantly outperformed the Sensex’s 0.54% decline, reflecting episodic investor optimism despite fundamental challenges.
However, the Q3 FY26 results highlighted persistent operational difficulties, with mounting losses and negative returns on capital employed. The valuation shift from attractive to fair, driven by a high P/E ratio of 60.38 and a deeply negative EV/EBITDA of -91.65, signals growing market caution. Comparisons with peers reveal that Motor & General Finance’s elevated multiples are not supported by profitability metrics, raising questions about the sustainability of current price levels.
Volume trends showed heightened trading interest on days preceding and following the earnings release, indicating active repositioning by investors. The Mojo Score of 26.0, categorised as a strong sell, further underscores the deteriorating sentiment and risk profile.
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Conclusion
Motor & General Finance Ltd’s week was a study in contrasts, with notable share price gains overshadowed by disappointing financial results and a cautious reappraisal of valuation. The company’s elevated price multiples juxtaposed with negative profitability metrics present a complex investment case. While short-term price rallies may offer some optimism, the fundamental challenges and strong sell Mojo rating counsel prudence.
Investors should carefully weigh the risks associated with the company’s operational struggles and valuation concerns against any potential for recovery. The divergence between the stock’s recent outperformance and its longer-term negative returns relative to the Sensex highlights the importance of a measured approach in assessing Motor & General Finance Ltd’s prospects.
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