Stock Performance Overview
The stock’s recent trading session saw a decline of 1.26%, contrasting with the Sensex’s positive movement of 0.57% on the same day. Over the past week, Popular Vehicles & Services Ltd has fallen by 12.52%, significantly underperforming the Sensex’s modest decline of 1.24%. The one-month performance is even more pronounced, with the stock dropping 20.23% while the Sensex gained 1.42%. Over three months, the stock has plummeted 36.00%, compared to the Sensex’s 2.24% decline.
Year-to-date figures reveal a 23.53% loss for the stock, starkly contrasted by the Sensex’s 2.97% decline. The one-year performance shows a 26.70% decrease against the Sensex’s 10.84% gain. Notably, the stock has delivered no returns over three, five, and ten-year horizons, while the Sensex has appreciated by 39.06%, 62.02%, and 259.91% respectively.
Technical Indicators and Market Position
Popular Vehicles & Services Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. Despite a brief gain following ten consecutive days of decline, the stock remains vulnerable, having underperformed its sector by 0.55% in the latest session.
Fundamental Assessment and Ratings
The company’s Mojo Score stands at 29.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 13 February 2026. This reflects a deteriorated outlook based on comprehensive fundamental analysis. The Market Capitalisation Grade is rated 4, indicating a relatively modest market cap within its industry.
One of the critical concerns is the company’s weak long-term fundamental strength, evidenced by a compound annual growth rate (CAGR) of -48.65% in operating profits over the last five years. The firm’s ability to service debt is limited, with a high Debt to EBITDA ratio of 7.43 times. Additionally, the company has reported losses, resulting in a negative return on equity (ROE).
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Comparative Performance and Valuation
Popular Vehicles & Services Ltd has underperformed the BSE500 index over the last three years, one year, and three months, generating negative returns of -27.55% in the past year alone. Despite this, the company reported its highest quarterly net sales at ₹1,785.36 crores and a peak quarterly PBDIT of ₹51.80 crores in December 2025. The operating profit to interest ratio for the quarter was also at its highest at 1.86 times.
The company’s return on capital employed (ROCE) stands at 1.9%, and it maintains an enterprise value to capital employed ratio of 1, suggesting an attractive valuation relative to its peers’ historical averages. However, profits have declined sharply by 187.1% over the past year, underscoring the financial strain despite the valuation metrics.
Institutional Holdings and Market Sentiment
Institutional investors hold a significant 20.64% stake in the company, indicating a level of confidence from entities with advanced analytical capabilities. This contrasts with the broader market sentiment reflected in the stock’s Strong Sell rating and ongoing price weakness.
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Summary of Key Financial Metrics
The company’s financial trajectory over the last five years has been marked by a steep decline in operating profits, with a CAGR of -48.65%. The high leverage, as indicated by the Debt to EBITDA ratio of 7.43, further complicates the financial landscape. Negative ROE highlights the challenges in generating shareholder returns. Despite recent quarterly highs in sales and PBDIT, the overall profitability remains under pressure, with a significant drop in profits year-on-year.
Technically, the stock’s position below all major moving averages and its proximity to the 52-week low underscore the prevailing bearish sentiment. The underperformance relative to the Sensex and sector benchmarks over multiple time frames reflects the stock’s subdued momentum.
Institutional holdings at 20.64% suggest that some market participants maintain exposure, potentially reflecting a longer-term view or strategic positioning. However, the prevailing Mojo Grade of Strong Sell and the associated score of 29.0 indicate a cautious stance based on fundamental and technical factors.
Market Context and Sector Comparison
Within the automobile sector, Popular Vehicles & Services Ltd’s valuation metrics such as enterprise value to capital employed ratio of 1 and ROCE of 1.9% position it at a discount compared to peers’ historical averages. However, the company’s sustained negative returns and deteriorating profitability metrics contrast with broader sector trends, where many competitors have shown resilience or growth.
The stock’s recent trend reversal after ten days of consecutive falls offers a brief respite but remains insufficient to offset the longer-term downtrend. The sector’s performance and the Sensex’s relative strength highlight the stock’s isolated weakness within its industry group.
Conclusion
Popular Vehicles & Services Ltd’s fall to an all-time low reflects a combination of weak financial performance, high leverage, and sustained underperformance relative to market benchmarks. While recent quarterly sales and profit figures reached record levels, the overall financial health remains challenged, as evidenced by negative returns and a Strong Sell rating. The stock’s technical indicators and valuation metrics further illustrate the difficulties faced by the company in regaining market confidence.
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