Key Events This Week
29 Dec 2025: Stock opens at Rs.117.15, down 0.17% amid broader market weakness
30 Dec 2025: Rating upgraded to Sell by MarketsMOJO on technical improvement despite weak fundamentals
31 Dec 2025: Slight recovery with 0.85% gain closing at Rs.112.40
1 Jan 2026: Sharp rally of 7.52% to Rs.120.85 on improved technical momentum
2 Jan 2026: Profit-taking leads to 2.23% decline, closing at Rs.118.15
29 December 2025: Week Opens with Mild Decline Amid Market Weakness
Popular Vehicles & Services Ltd began the week at Rs.117.15 on 29 December 2025, registering a slight decline of 0.17% from the previous close. This movement occurred in tandem with a broader market sell-off, as the Sensex fell 0.41% to 37,140.23. Trading volume was moderate at 3,572 shares, reflecting cautious investor sentiment ahead of key rating updates.
30 December 2025: Upgrade to Sell Rating Spurs Mixed Reactions
The most significant event of the week came on 30 December 2025, when MarketsMOJO upgraded Popular Vehicles & Services Ltd’s rating from 'Strong Sell' to 'Sell'. This adjustment was driven by a modest improvement in technical indicators, despite the company’s ongoing fundamental weaknesses. The stock price reacted negatively, falling 4.87% to Rs.111.45 on increased volume of 4,008 shares, signalling investor caution.
The upgrade reflected a nuanced view: while technical momentum showed signs of stabilisation, the company’s long-term fundamentals remained weak. Operating profits have declined at a compound annual growth rate of -36.10% over five years, and the firm continues to face high leverage with a Debt to EBITDA ratio of 7.43 times. Interest expenses peaked at ₹25.67 crores in Q2 FY25-26, further pressuring profitability.
31 December 2025: Slight Recovery on Low Volume
On the final trading day of 2025, the stock rebounded modestly by 0.85% to close at Rs.112.40, with volume declining sharply to 1,323 shares. This recovery coincided with a strong Sensex gain of 0.83%, suggesting some market-wide optimism. However, the stock remained well below its 52-week high of Rs.163.70, underscoring persistent investor wariness.
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1 January 2026: Sharp Rally on Technical Momentum Shift
The new year opened with a strong rally for Popular Vehicles & Services Ltd, surging 7.52% to Rs.120.85 on robust volume of 5,010 shares. This sharp gain was supported by a shift in technical momentum from mildly bearish to sideways, with daily moving averages turning mildly bullish. The Sensex also advanced 0.14%, closing at 37,497.10, but the stock’s outperformance was notable.
Technical indicators presented a mixed but cautiously optimistic picture. While weekly MACD remained bearish and Bollinger Bands suggested mild downside pressure, the monthly on-balance volume (OBV) was bullish, hinting at longer-term accumulation. Relative Strength Index (RSI) readings were neutral, indicating consolidation rather than a decisive trend reversal.
2 January 2026: Profit-Taking Leads to Moderate Decline
Profit-taking on 2 January 2026 saw the stock retreat 2.23% to close at Rs.118.15, with volume moderating to 2,397 shares. Despite this pullback, the stock remained above the week’s opening price, reflecting resilience. The Sensex gained 0.81% to 37,799.57, continuing its upward trajectory. The stock’s weekly gain of 0.68% lagged the Sensex’s 1.35% advance, highlighting ongoing challenges.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2025-12-29 | Rs.117.15 | -0.17% | 37,140.23 | -0.41% |
| 2025-12-30 | Rs.111.45 | -4.87% | 37,135.83 | -0.01% |
| 2025-12-31 | Rs.112.40 | +0.85% | 37,443.41 | +0.83% |
| 2026-01-01 | Rs.120.85 | +7.52% | 37,497.10 | +0.14% |
| 2026-01-02 | Rs.118.15 | -2.23% | 37,799.57 | +0.81% |
Key Takeaways
Technical Stabilisation Amid Fundamental Weakness: The upgrade from 'Strong Sell' to 'Sell' was driven by improved technical indicators, including mildly bullish daily moving averages and bullish monthly OBV. However, weekly MACD and Bollinger Bands remain bearish, signalling caution.
Persistent Operational Challenges: The company continues to face significant fundamental headwinds, with a negative five-year CAGR in operating profits of -36.10%, high leverage (Debt to EBITDA of 7.43x), and elevated interest expenses. These factors weigh heavily on long-term prospects.
Volatile Price Action: The stock experienced a sharp intraweek rally of 7.52% on 1 January 2026, followed by profit-taking. Despite this, the weekly gain of 0.68% lagged the Sensex’s 1.35% advance, reflecting ongoing investor caution.
Institutional Interest and Valuation: With a Mojo Score of 34.0 and a Market Cap Grade of 4, the stock remains attractively valued relative to peers but reflects market discounting of operational difficulties. Institutional holding at 21.15% suggests some confidence in potential recovery.
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Conclusion
Popular Vehicles & Services Ltd’s week was characterised by a cautious technical stabilisation amid persistent fundamental challenges. The upgrade to a Sell rating from Strong Sell reflected improved technical momentum but did not alter the underlying operational difficulties, including declining profitability and high leverage. The stock’s modest weekly gain of 0.68% lagged the broader market’s 1.35% advance, underscoring investor prudence.
While short-term technical indicators suggest some buying interest, the absence of a clear trend reversal and ongoing fundamental weaknesses advise a watchful approach. Investors should monitor upcoming quarterly results and sector developments closely to assess whether the technical improvements can translate into sustainable financial recovery.
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