Permanent Magnets Ltd Gains 1.64%: Mixed Technicals and Death Cross Mark the Week

29 December 2025: Technical Momentum Shifts Amid Mixed Signals

Permanent Magnets Ltd opened the week trading at ₹856.00, showing a slight gain of 0.12% from the previous close. The stock’s technical momentum shifted from mildly bearish to a sideways trend, reflecting a complex interplay of indicators. Weekly MACD remained bearish while monthly MACD hinted at mild bullishness, suggesting a tentative recovery over the longer term. The Relative Strength Index (RSI) stayed neutral, indicating neither overbought nor oversold conditions. Bollinger Bands signalled mild bearishness weekly and bearishness monthly, pointing to elevated volatility and potential resistance near upper price bands.

Daily moving averages showed mild bullishness, contrasting with broader weekly and monthly signals, highlighting a consolidation phase. Dow Theory assessments indicated a mildly bearish weekly trend with no clear monthly direction. The stock’s 52-week range remained wide, from ₹600.00 to ₹1,229.90, underscoring significant price volatility over the past year.

Relative to the Sensex, Permanent Magnets outperformed with a 0.59% gain over the past week versus the benchmark’s 0.13%. However, year-to-date and one-year returns remained negative at -11.38% and -10.79% respectively, contrasting with the Sensex’s positive gains. The company’s Mojo Score stood at 27.0, categorised as Strong Sell, reflecting caution amid mixed technical signals.

30 December 2025: Death Cross Formation Signals Bearish Trend

On 30 December, Permanent Magnets Ltd’s stock price rose 1.99% to ₹873.00, yet technical developments cast a shadow over the medium-term outlook. The 50-day moving average crossed below the 200-day moving average, forming a Death Cross—a widely recognised bearish signal indicating potential trend deterioration. This crossover suggested weakening momentum and increased selling pressure ahead.

The company’s valuation remained elevated, with a price-to-earnings ratio of 61.73, nearly double the industry average of 32.34, raising concerns about sustainability without earnings growth catalysts. Over the past year, the stock underperformed the Sensex by 8.68%, with similar underperformance over three months and year-to-date periods.

Technical indicators largely confirmed bearish momentum: daily and weekly MACD readings were negative, Bollinger Bands indicated bearishness, and the Know Sure Thing (KST) oscillator showed weekly bearishness despite mild monthly bullishness. The Relative Strength Index remained neutral, offering no directional bias.

Reflecting these challenges, the Mojo Score was upgraded slightly from Strong Sell to Sell, moving to 32.0. Despite the positive daily price change, the broader technical and fundamental picture remained cautious.

30 December 2025: Mojo Score Upgraded to Sell Amid Weak Financials

Coinciding with the Death Cross, MarketsMOJO upgraded Permanent Magnets Ltd’s rating from Strong Sell to Sell on 29 December 2025, reflecting a nuanced shift in technical indicators despite ongoing financial weaknesses. The company’s operating profit growth over five years was a modest 3.09% annually, with return on capital employed (ROCE) at 10.92% for the half-year ended September 2025 and a quarterly ROCE of 9.3%, indicating limited capital efficiency.

Financial results revealed a sharp decline in profitability in Q2 FY25-26, with profit before tax plunging 69.63% to ₹2.32 crores and profit after tax falling 66.6% to ₹2.37 crores. The stock traded at an enterprise value to capital employed ratio of 4.5, considered expensive relative to returns, though discounted compared to peers.

Despite the upgrade, the company lacked institutional ownership from domestic mutual funds, signalling investor caution. The low debt-to-equity ratio of 0.05 times indicated a conservative capital structure, mitigating financial risk. The technical trend shifted from mildly bearish to sideways, with daily moving averages mildly bullish but weekly and monthly indicators mixed.

31 December 2025: Mixed Technical Signals Amid Mildly Bearish Momentum

On the final trading day of the year, Permanent Magnets Ltd closed at ₹868.00, down 0.57% from the previous day, reflecting a mildly bearish technical stance. The stock’s technical trend shifted from sideways to mildly bearish, with daily moving averages signalling downward momentum. Weekly MACD remained bearish, while monthly MACD turned mildly bullish, suggesting possible longer-term stabilisation.

The Relative Strength Index stayed neutral, and Bollinger Bands indicated mild bearishness weekly and outright bearishness monthly, pointing to ongoing volatility. The Know Sure Thing oscillator echoed this mixed sentiment, bearish weekly but mildly bullish monthly. Dow Theory analysis showed a mildly bullish weekly trend but no clear monthly direction.

Relative to the Sensex, Permanent Magnets outperformed on this day, with the Sensex declining 0.01% while the stock gained 1.99% on 30 December, but over the month, the stock declined 3.02%, underperforming the Sensex’s 1.20% drop. Year-to-date and one-year returns remained negative, contrasting with the Sensex’s positive gains.

Daily Price Comparison: Permanent Magnets Ltd vs Sensex

Key Takeaways

Positive Signals: The stock outperformed the Sensex over the week, gaining 1.64% versus the benchmark’s 1.35%. The Mojo Score upgrade from Strong Sell to Sell reflects a slight improvement in technical outlook. Monthly MACD and KST indicators suggest mild bullish momentum over the longer term. The company maintains a conservative capital structure with low debt-to-equity, reducing financial risk.

Cautionary Signals: The formation of a Death Cross on 30 December signals potential medium-term bearishness. Financial results remain weak, with significant declines in profitability and modest operating profit growth. Valuation metrics remain elevated relative to sector averages, raising concerns about earnings sustainability. Daily and weekly technical indicators predominantly show bearish or neutral momentum, indicating ongoing volatility and uncertainty.

Institutional absence from domestic mutual funds further underscores market caution. The stock’s year-to-date and one-year returns remain negative, contrasting with the Sensex’s positive performance, highlighting recent challenges despite strong long-term returns.

Conclusion

Permanent Magnets Ltd’s week was characterised by mixed technical and fundamental signals. While the stock managed to outperform the Sensex modestly, the emergence of a Death Cross and weak financial results temper optimism. The upgrade in Mojo Score to Sell suggests cautious acknowledgement of stabilising technicals, but persistent valuation concerns and earnings volatility remain key risks.

Investors should approach the stock with prudence, balancing its impressive long-term returns against near-term uncertainties. Monitoring key technical levels and financial developments will be essential to gauge whether the current consolidation phase evolves into a sustained recovery or further decline.

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