The stock’s current price of Rs.19.5 stands well below its 52-week high of Rs.100, representing a substantial reduction in market value. Nettlinx’s share price is trading beneath all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent downward momentum. This contrasts with the broader market trend, where the Sensex has recorded gains, hitting a new 52-week high of 85,660.83 points and trading above its 50-day and 200-day moving averages.
In terms of relative performance, Nettlinx has underperformed its sector peers and the broader market indices. Over the last year, the stock has delivered a return of -76.19%, while the Sensex has shown a positive return of 10.42%. This divergence highlights the challenges faced by Nettlinx compared to the overall market environment, which has been buoyed by gains in mega-cap stocks.
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Financially, Nettlinx has reported negative results for the last three consecutive quarters. The company’s net sales for the most recent quarter stood at Rs.5.33 crores, reflecting a decline of 19.0% compared to the previous four-quarter average. Profit after tax (PAT) for the latest six months was recorded at a loss of Rs.1.16 crores, with a contraction rate of 29.85%. These figures underline the subdued revenue generation and profitability pressures the company is experiencing.
Return on equity (ROE) averaged 7.16%, indicating modest profitability relative to shareholders’ funds. Additionally, the debtors turnover ratio for the half-year period was 0.13 times, suggesting slower collection efficiency. The company’s return on capital employed (ROCE) was 2.7%, which, while low, corresponds with an enterprise value to capital employed ratio of 0.8, pointing to a valuation that is comparatively attractive within its peer group.
Over the longer term, Nettlinx’s stock has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This sustained underperformance reflects challenges in both market sentiment and company fundamentals. The majority shareholding remains with promoters, maintaining concentrated ownership control.
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In the context of the broader market, Nettlinx’s performance stands in contrast to the positive momentum seen in the Sensex and mega-cap stocks. The Sensex opened 284.45 points higher today and is currently trading with a gain of 0.56%. This divergence emphasises the stock’s relative weakness within the Telecom - Services sector and the wider market environment.
While Nettlinx’s valuation metrics suggest a discount relative to historical peer averages, the company’s recent financial results and stock price trajectory highlight ongoing challenges. The stock’s current position below all major moving averages and its new 52-week low of Rs.19.5 underscore the cautious market stance towards the company’s near-term prospects.
Overall, Nettlinx’s stock has experienced a notable decline over the past year, with key financial indicators reflecting subdued sales and profitability. The stock’s performance relative to the Sensex and sector peers illustrates the difficulties faced by the company in maintaining market confidence amid a generally positive market backdrop.
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