Stock Performance and Market Context
On 8 January 2026, Setubandhan Infrastructure Ltd’s share price touched Rs.0.45, the lowest level recorded in the past year. This represents a sharp fall from its 52-week high of Rs.1.12, reflecting a year-to-date performance decline of 43.75%. In contrast, the benchmark Sensex has gained 8.30% over the same period, underscoring the stock’s underperformance relative to the broader market.
The stock’s movement today was in line with the construction sector’s overall trend, which has been facing pressure amid cautious investor sentiment. Setubandhan Infrastructure is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
Meanwhile, the Sensex opened 183.12 points lower and was trading at 84,635.74, down 0.38%, remaining 1.8% shy of its 52-week high of 86,159.02. The index’s 50-day moving average remains above its 200-day moving average, signalling a generally positive medium-term trend for the broader market, which contrasts with the stock’s weak technical positioning.
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Financial and Fundamental Analysis
Setubandhan Infrastructure Ltd’s financial health remains a concern, as reflected in its MarketsMOJO Mojo Score of 12.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 1 September 2025. The company’s market capitalisation grade stands at 4, indicating a relatively small market cap within its sector.
One of the key issues is the absence of declared financial results for the past six months, which adds to the uncertainty surrounding the company’s current performance. Over the last five years, the company’s net sales have contracted at an annual rate of 24.40%, while operating profit has declined by 71.04%, signalling persistent challenges in generating growth and profitability.
Debt servicing capacity is also limited, with a Debt to EBITDA ratio of -1.00 times, highlighting the company’s difficulty in managing its financial obligations effectively. This ratio suggests that earnings before interest, taxes, depreciation, and amortisation are insufficient to cover debt levels, raising concerns about liquidity and solvency.
Recent Quarterly Results
The latest quarterly results for March 2023 reveal a pre-tax loss of ₹12.62 million, a deterioration of 133.04% compared to the previous period. Net profit also declined sharply by 112.52%, registering a loss of ₹10.88 million. Additionally, the inventory turnover ratio for the half-year stood at a low 1.11, indicating slower movement of stock and potential inefficiencies in inventory management.
Despite these setbacks, the company’s profits have shown a 101% increase over the past year, a figure that contrasts with the stock’s negative price performance. This divergence may reflect market scepticism about the sustainability of earnings growth amid broader financial and operational pressures.
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Valuation and Risk Considerations
The stock is currently trading at valuations that are considered risky relative to its historical averages. The combination of weak long-term fundamentals, declining sales, and profitability challenges has contributed to the MarketsMOJO Strong Sell rating. The company’s inability to release recent financial results further complicates the assessment of its current standing.
Setubandhan Infrastructure’s position within the construction sector, which itself has faced cyclical pressures, adds another layer of complexity. The sector’s performance has been mixed, with some companies showing resilience while others struggle with project delays and cost escalations. Setubandhan’s stock price movement below all major moving averages reflects investor caution and the need for clearer financial visibility.
Summary of Key Metrics
To summarise, the stock’s key metrics as of 8 January 2026 are:
- New 52-week low price: Rs.0.45
- 52-week high price: Rs.1.12
- One-year stock return: -43.75%
- Sensex one-year return: +8.30%
- Mojo Score: 12.0 (Strong Sell)
- Debt to EBITDA ratio: -1.00 times
- Pre-tax profit (Q4 Mar 2023): -₹12.62 million (-133.04%)
- Net profit (Q4 Mar 2023): -₹10.88 million (-112.52%)
- Inventory turnover ratio (HY): 1.11
These figures highlight the challenges faced by Setubandhan Infrastructure Ltd in maintaining financial stability and market confidence.
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