Stock Price Movement and Market Context
On 5 Feb 2026, Phoenix Township Ltd’s stock price touched an intraday low of Rs.96.55, representing a 6.44% drop during the trading session. The stock closed with a day change of -1.65%, underperforming its sector by 3.74%. This decline extends a two-day losing streak, with the stock falling 1.79% over this period. Notably, the stock is 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 Hotels, Resorts & Restaurants sector gained 2.09% on the same day, highlighting the stock’s relative weakness within its industry. The broader market, represented by the Sensex, also faced pressure, closing down 0.62% at 83,300.10 points, after a flat opening. The Sensex remains 3.43% below its 52-week high of 86,159.02, with the index trading below its 50-day moving average, though the 50DMA remains above the 200DMA.
Long-Term Performance and Valuation Metrics
Over the past year, Phoenix Township Ltd has experienced a steep decline of 60.13%, significantly underperforming the Sensex, which delivered a positive return of 6.44% during the same period. The stock’s 52-week high was Rs.308, underscoring the magnitude of the recent price erosion.
The company’s valuation metrics reflect a challenging environment. With a Return on Equity (ROE) averaging 1.09%, Phoenix Township Ltd demonstrates limited profitability relative to shareholders’ funds. The Return on Capital Employed (ROCE) for the half-year period stands at a low 1.73%, indicating constrained efficiency in generating returns from capital investments.
Additionally, the company’s Debt to EBITDA ratio is notably high at 33.73 times, suggesting a limited capacity to service debt obligations comfortably. This elevated leverage ratio is a critical factor in the stock’s current valuation and risk profile.
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Financial Results and Profitability Trends
Recent financial disclosures reveal a contraction in profitability. The company reported a Profit After Tax (PAT) of Rs.1.09 crore for the latest six-month period, reflecting a decline of 53.81%. Quarterly net sales stood at Rs.6.33 crore, down 20.5% compared to the previous four-quarter average. These figures indicate a weakening revenue base and pressure on earnings.
Despite these challenges, Phoenix Township Ltd has demonstrated a healthy long-term growth trajectory in operating profit, which has increased at an annual rate of 52.69%. This growth, however, has not translated into commensurate bottom-line improvements, as reflected in the declining PAT and low returns on equity and capital employed.
Valuation and Market Capitalisation
The company’s valuation appears expensive relative to its capital efficiency, with an Enterprise Value to Capital Employed ratio of 0.8. While the stock is trading at a discount compared to its peers’ average historical valuations, the combination of low profitability and high leverage weighs on investor sentiment.
Phoenix Township Ltd holds a Market Cap Grade of 4, indicating a relatively modest market capitalisation within its sector. The majority shareholding remains with promoters, maintaining concentrated ownership.
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Sector and Market Comparison
While Phoenix Township Ltd has faced a significant decline, the Hotels, Resorts & Restaurants sector has shown resilience, gaining 2.09% on the day the stock hit its 52-week low. The broader market, represented by the BSE500, has delivered a 7.03% return over the past year, further emphasising the stock’s underperformance relative to both sector and market benchmarks.
The Sensex’s current position, trading below its 50-day moving average but with the 50DMA above the 200DMA, suggests a mixed market environment. Phoenix Township Ltd’s persistent trading below all major moving averages highlights its relative weakness in this context.
Mojo Score and Rating Update
Reflecting these financial and market conditions, Phoenix Township Ltd holds a Mojo Score of 21.0 and a Mojo Grade of Strong Sell as of 16 Jun 2025, an upgrade from its previous Sell rating. This grading underscores the stock’s current risk profile and valuation concerns within the Hotels & Resorts sector.
The downgrade in sentiment is supported by the company’s low return metrics, high leverage, and recent negative earnings growth, factors that have contributed to the stock’s decline to its 52-week low.
Summary of Key Metrics
To summarise, Phoenix Township Ltd’s key financial and market metrics as of 5 Feb 2026 include:
- New 52-week low price: Rs.96.55
- One-year stock return: -60.13%
- Sector performance (Hotels & Resorts): +2.09% (day)
- Sensex one-year return: +6.44%
- Return on Equity (avg): 1.09%
- Return on Capital Employed (HY): 1.73%
- Debt to EBITDA ratio: 33.73 times
- Profit After Tax (latest six months): Rs.1.09 crore (-53.81%)
- Net Sales (quarterly): Rs.6.33 crore (-20.5%)
- Mojo Score: 21.0
- Mojo Grade: Strong Sell (upgraded from Sell on 16 Jun 2025)
The stock’s current valuation and financial profile reflect the challenges faced by Phoenix Township Ltd in maintaining profitability and managing debt, factors that have contributed to its recent price decline and 52-week low.
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