Stock Price Movement and Market Context
On 21 Jan 2026, Quest Capital Markets Ltd’s share price declined to Rs.260, the lowest level recorded in the past year. This new low comes after two consecutive days of losses, during which the stock has fallen by 4.26%. Despite this, the stock marginally outperformed its sector by 1.08% on the day. However, it continues to trade below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.
The broader market environment has also been challenging. The Sensex opened 385.82 points lower and closed down by 212.52 points at 81,582.13, a decline of 0.73%. The index is trading below its 50-day moving average, although the 50-day average remains above the 200-day average. Notably, the Sensex has experienced a three-week consecutive fall, losing 4.87% over this period, reflecting a cautious market sentiment.
Long-Term Performance and Relative Comparison
Quest Capital Markets Ltd’s one-year performance stands at a negative 30.23%, significantly underperforming the Sensex, which has gained 7.57% over the same period. The stock’s 52-week high was Rs.469.35, highlighting the extent of the decline from its peak. Over the last three years, the stock has consistently underperformed the BSE500 index, indicating challenges in maintaining competitive growth and returns.
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Financial Metrics and Fundamental Assessment
The company’s long-term fundamental strength remains subdued. Quest Capital Markets Ltd reports an average Return on Equity (ROE) of 1.88%, which is considered weak for the capital markets sector. The net sales have declined at an annual rate of 3.36%, reflecting contraction rather than growth over recent years. The latest quarterly results for September 2025 were flat, indicating no significant improvement in revenue or profitability.
Profitability has also been under pressure, with profits falling by 3.9% over the past year. Despite these challenges, the stock’s valuation metrics suggest it is trading at a very attractive level. The Price to Book Value ratio stands at a low 0.2, indicating that the market values the company at a fraction of its book value. This valuation is in line with the company’s peers’ historical averages, suggesting the stock is fairly priced relative to sector norms.
Shareholding and Market Grade
The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. From a market grading perspective, Quest Capital Markets Ltd has been assigned a Mojo Score of 26.0, categorised as a Strong Sell. This represents a downgrade from its previous Sell rating on 4 Aug 2025, reflecting deteriorating fundamentals and market sentiment. The Market Cap Grade is rated 4, indicating a relatively modest market capitalisation within its sector.
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Summary of Key Concerns
The stock’s decline to Rs.260 marks a critical juncture, reflecting a combination of weak financial performance, subdued growth prospects, and challenging market conditions. The consistent underperformance relative to the Sensex and BSE500 index over multiple time frames highlights structural issues in the company’s growth trajectory. The low ROE and declining net sales further underscore the difficulties faced in generating shareholder value.
Trading below all major moving averages indicates a lack of upward momentum, while the broader market’s recent weakness adds to the pressure on the stock price. Although the valuation metrics suggest the stock is attractively priced, this is largely a reflection of the market’s cautious stance given the company’s fundamentals.
Conclusion
Quest Capital Markets Ltd’s fall to a 52-week low of Rs.260 encapsulates a period of sustained challenges for the company within the capital markets sector. The combination of weak returns, declining sales, and a cautious market environment has contributed to this outcome. While the stock’s valuation appears reasonable relative to peers, the prevailing financial and market indicators suggest continued scrutiny is warranted.
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