SEL Manufacturing Drops 8.67%: 3 Key Events Shaping the Week

23 February 2026: Positive Start Amid Market Gains

SEL Manufacturing Company Ltd began the week on a positive note, closing at Rs.33.62, up Rs.0.76 or 2.31% from the previous close. This outperformance contrasted with the Sensex’s 0.39% gain to 36,817.86, signalling early buying interest in the stock. The volume was moderate at 1,823 shares, reflecting some investor confidence despite the micro-cap’s typical liquidity constraints.

24 February 2026: Upper Circuit Triggered on Strong Buying Pressure

The stock’s momentum continued on 24 Feb, when it hit the upper circuit limit of 5%, closing at Rs.32.99. This surge occurred despite the broader market’s decline, with the Sensex falling 0.78% to 36,530.09 and the Garments & Apparels sector dropping 1.89%. The upper circuit hit was driven by intense demand amid limited liquidity, with only 856 shares traded and a turnover of ₹0.0296 crore. The regulatory freeze triggered by the circuit limit reflected an imbalance between strong buying interest and scarce supply.

Technically, the stock was trading above all key moving averages, indicating short-term strength. However, the company’s fundamental outlook remained weak, with a Mojo Score of 9.0 and a Strong Sell grade, cautioning investors about the sustainability of this rally.

25 February 2026: Sharp Reversal to Lower Circuit Amid Panic Selling

The following day saw a dramatic reversal as SEL Manufacturing plunged to the lower circuit limit, closing at Rs.30.00, down Rs.1.62 or 4.97%. The stock opened with a gap down of 2.96%, reflecting immediate bearish sentiment. Intraday volatility was high at 11.96%, with the weighted average price indicating most trades clustered near the day’s low, underscoring dominant selling pressure.

Volume increased to approximately 66,710 shares, with delivery volumes surging by 752.6% compared to the five-day average, signalling heavy offloading by investors. This selling overwhelmed the market’s capacity to absorb supply, triggering the circuit breaker. The stock’s technical position weakened, trading below its 5-day, 50-day, 100-day, and 200-day moving averages, though still above the 20-day average.

Relative to the sector and Sensex, SEL Manufacturing underperformed sharply, with the Garments & Apparels sector declining only 0.05% and the Sensex gaining 0.82%. The company’s micro-cap status and weak fundamentals, including a Strong Sell Mojo Grade, contributed to the negative sentiment.

26 February 2026: Continued Downtrend and Lower Circuit Hit Again

On 26 Feb, the stock extended its decline, again hitting the lower circuit limit and closing at Rs.28.52, down 4.97% from the previous day. Intraday volatility remained elevated at 6.74%, with prices oscillating between Rs.30.90 and Rs.28.38. Despite an intraday high gain of 3.45%, relentless selling pressure prevailed, pushing the stock to its maximum daily loss.

Trading volume was modest at 0.12114 lakh shares, with turnover of ₹0.035 crore. Delivery volumes increased by 143.21% compared to the five-day average, indicating more investors holding shares or forced selling. The stock traded below all key moving averages, confirming a bearish trend across multiple timeframes.

The Garments & Apparels sector declined 0.49%, while the Sensex marginally gained 0.05%, highlighting SEL Manufacturing’s isolated weakness. The company’s Mojo Score remained at 9.0 with a Strong Sell rating, reflecting deteriorating fundamentals and heightened risk.

27 February 2026: Minor Recovery Despite Market Weakness

The week concluded with a modest rebound as SEL Manufacturing closed at Rs.30.01, gaining Rs.0.59 or 2.01%. This recovery came amid a broader market decline, with the Sensex falling 1.16% to 36,322.56. Volume surged to 2,521 shares, indicating renewed trading interest. However, the stock remained well below its weekly high and continued to face fundamental and technical headwinds.

Key Takeaways

1. Extreme Volatility and Circuit Hits: The stock’s week was characterised by sharp swings, including an upper circuit on 24 Feb and consecutive lower circuits on 25 and 26 Feb, reflecting a highly unstable trading environment driven by supply-demand imbalances.

2. Weak Fundamentals and Strong Sell Rating: Despite intermittent buying interest, SEL Manufacturing’s Mojo Score of 9.0 and Strong Sell grade highlight persistent fundamental weaknesses, cautioning investors about the stock’s risk profile.

3. Sector and Market Divergence: The stock’s performance diverged markedly from the broader Garments & Apparels sector and Sensex, underperforming during market gains and declining sharply amid sectoral headwinds and company-specific challenges.

Conclusion

SEL Manufacturing Company Ltd’s stock experienced a challenging week marked by significant volatility and a steep 8.67% decline, far exceeding the Sensex’s 0.96% fall. The week’s events, including upper and lower circuit hits, underscore the stock’s susceptibility to rapid sentiment shifts and liquidity constraints typical of micro-cap stocks. While technical indicators showed brief strength early in the week, the prevailing fundamental weaknesses and sectoral pressures have weighed heavily on the stock’s performance.

Investors should remain cautious given the Strong Sell rating and the stock’s continued underperformance relative to benchmarks. Monitoring future trading sessions for signs of stabilisation or fundamental improvement will be essential before considering any change in stance.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today