Stock Performance and Market Context
On 24 Feb 2026, Popular Vehicles & Services Ltd recorded an intraday low of Rs.86, representing a 3.53% drop on the day and a 3.08% decline in closing price. This marks the tenth consecutive day of losses for the stock, which has fallen by 27.86% over this period. The stock’s current price is substantially below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend.
In comparison, the Sensex index also declined sharply on the same day, falling 914.95 points or 1.39% to close at 82,137.59. Despite this, the Sensex remains 4.9% below its 52-week high of 86,159.02 and is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, signalling mixed market momentum.
Over the past year, Popular Vehicles & Services Ltd has delivered a negative return of 27.63%, contrasting with the Sensex’s positive 10.37% gain. The stock’s 52-week high was Rs.163.05, underscoring the extent of its decline.
Financial and Fundamental Indicators
The company’s financial metrics reveal several areas of concern. Its long-term operating profit growth has contracted at a compound annual growth rate (CAGR) of -48.65% over the last five years. This decline in profitability is reflected in a negative return on equity (ROE), signalling challenges in generating shareholder value.
Debt servicing capacity remains limited, with a high Debt to EBITDA ratio of 7.43 times, indicating significant leverage relative to earnings before interest, taxes, depreciation, and amortisation. This elevated leverage ratio raises questions about the company’s financial flexibility.
Performance over multiple time horizons has been below par. The stock has underperformed the BSE500 index over the last three years, one year, and three months, with a one-year return of -28.00%. Profitability has also deteriorated sharply, with profits falling by 187.1% over the past year.
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Quarterly Highlights and Valuation Metrics
Despite the overall downtrend, the company reported some positive quarterly results in December 2025. Net sales reached a quarterly high of Rs.1,785.36 crore, while PBDIT (profit before depreciation, interest, and taxes) also peaked at Rs.51.80 crore. The operating profit to interest coverage ratio stood at 1.86 times, the highest recorded, indicating some improvement in the company’s ability to meet interest obligations from operating profits.
Return on capital employed (ROCE) remains modest at 1.9%, but the stock’s valuation metrics suggest an attractive entry point relative to peers. The enterprise value to capital employed ratio is at 1, signalling that the stock is trading at a discount compared to the average historical valuations of its sector counterparts.
Institutional investors hold a significant stake of 20.64%, reflecting continued interest from entities with greater analytical resources and longer-term perspectives.
Sector and Industry Positioning
Popular Vehicles & Services Ltd operates within the automobiles industry and sector, which has seen mixed performance amid broader market volatility. The stock’s underperformance relative to the sector by 2.12% on the day highlights its current challenges in maintaining competitive momentum.
Its Mojo Score stands at 29.0, with a Mojo Grade of Strong Sell as of 13 Feb 2026, an upgrade from the previous Sell rating. This grading reflects the company’s weak long-term fundamental strength and financial metrics, reinforcing the cautious stance on the stock’s near-term outlook.
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Summary of Key Concerns
The stock’s fall to Rs.86, its lowest level in 52 weeks and all time, is underpinned by a combination of weak profitability trends, high leverage, and sustained underperformance relative to market benchmarks. The negative compound growth in operating profits over five years and the negative ROE highlight structural profitability issues. The high Debt to EBITDA ratio further emphasises financial strain.
While quarterly sales and profit metrics showed some improvement in December 2025, these have not yet translated into a reversal of the stock’s downward trajectory. The stock’s valuation discount relative to peers and institutional holding levels provide some context for its current market positioning, but the overall financial profile remains subdued.
Market and Technical Indicators
Technically, the stock’s position below all major moving averages signals continued bearish momentum. The 10-day losing streak and 27.86% decline over this period underscore the persistent selling pressure. The broader market’s decline on the same day, with the Sensex falling 1.39%, adds to the challenging environment for the stock.
Investors and market participants will note the contrast between the stock’s performance and the broader market indices, which have maintained positive returns over the past year. This divergence highlights the specific challenges faced by Popular Vehicles & Services Ltd within the automobile sector.
Conclusion
Popular Vehicles & Services Ltd’s recent fall to a 52-week low of Rs.86 reflects a combination of financial headwinds and market pressures. The company’s weak long-term growth in operating profits, high leverage, and negative returns on equity contribute to its current valuation and market sentiment. Despite some positive quarterly results and an attractive valuation relative to peers, the stock remains in a downtrend, trading below all key moving averages and underperforming both its sector and the broader market indices.
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