Stock Price Movement and Market Context
On 26 Dec 2025, Nettlinx’s share price touched Rs.17.5, the lowest in the past year. Despite this, the stock outperformed its sector by 2.71% on the day, although it remains well below its longer-term moving averages. The price currently sits above the 5-day moving average but remains below the 20-day, 50-day, 100-day, and 200-day moving averages, indicating a persistent downward trend over the medium and long term.
In comparison, the broader market has shown relative resilience. The Sensex opened 183.42 points lower but is trading at 85,049.15, just 1.3% shy of its 52-week high of 86,159.02. The Sensex is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks have also shown modest gains, with the BSE Mid Cap index rising by 0.09% on the same day.
Financial Performance Overview
Nettlinx’s financial results over recent quarters have reflected ongoing pressures. The company has reported negative profits after tax (PAT) for the last three consecutive quarters. The latest six-month PAT stands at a loss of Rs.1.16 crore, showing a decline of 29.85% compared to previous periods. Net sales for the latest quarter were Rs.5.33 crore, down 19.0% relative to the average of the preceding four quarters.
These figures highlight a contraction in revenue and profitability, which has contributed to the stock’s downward trajectory. The company’s 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 challenges in receivables management and cash flow efficiency.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Long-Term and Sector Comparison
Over the past year, Nettlinx’s stock has declined by 75.71%, a stark contrast to the Sensex’s gain of 8.38% during the same period. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, indicating sustained challenges relative to broader market benchmarks.
The telecom services sector, in which Nettlinx operates, has generally experienced mixed performance, with some companies showing resilience while others face headwinds. Nettlinx’s market capitalisation is graded modestly, reflecting its micro-cap status and the scale of its operations compared to larger peers.
Valuation and Capital Efficiency
Despite the subdued financial results, Nettlinx’s valuation metrics suggest an attractive entry point relative to its capital employed. The company’s return on capital employed (ROCE) stands at 2.7%, and it has an enterprise value to capital employed ratio of 0.8, indicating that the stock is trading at a discount compared to historical valuations of its peers.
However, the company’s profitability metrics remain below par, with a decline in profits of approximately 15% over the past year. This combination of valuation and financial performance underscores the complexity of the company’s current position in the market.
Considering Nettlinx ? Wait! SwitchER has found potentially better options in Telecom - Services and beyond. Compare this micro-cap with top-rated alternatives now!
- - Better options discovered
- - Telecom - Services + beyond scope
- - Top-rated alternatives ready
Shareholding and Market Position
The majority shareholding in Nettlinx is held by promoters, which typically indicates concentrated ownership. This structure can influence corporate governance and strategic decisions. The company’s position within the telecom services sector remains modest, with ongoing efforts to stabilise its financial footing.
While Nettlinx’s stock price has reached a new low, it is important to note that the broader market environment remains relatively stable, with key indices maintaining levels near their highs. The divergence between Nettlinx’s performance and the overall market highlights the specific challenges faced by the company.
Summary
Nettlinx’s stock reaching Rs.17.5, its 52-week low, reflects a period of financial strain characterised by declining sales, negative profitability, and subdued returns on equity and capital employed. The stock’s valuation metrics suggest a discount relative to peers, but the company’s recent financial results and market performance indicate ongoing difficulties. The broader market context shows resilience, underscoring the distinct challenges faced by Nettlinx within the telecom services sector.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
