Stock Price Movement and Market Context
On the day in question, Shradha AI Technologies Ltd opened with a gap down of -3.08%, continuing its downward trajectory to touch an intraday low of Rs.30.26, representing a sharp fall of -6.89% from previous levels. The stock underperformed its sector by -3.98% and closed with a day change of -3.72%. This decline places the stock well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market index, Sensex, despite opening lower by -121.96 points, managed to trade above its 50-day moving average and remains only 0.87% shy of its 52-week high of 86,159.02. Sensex closed at 85,414.42, down by -225.63 points or -0.41%, indicating a relatively resilient market backdrop compared to the steep decline in Shradha AI Technologies Ltd’s share price.
Performance Over the Past Year
Over the last 12 months, Shradha AI Technologies Ltd has experienced a substantial decline of -49.86% in its stock price, a stark contrast to the Sensex’s positive return of 7.83% over the same period. The stock’s 52-week high was Rs.63.64, highlighting the extent of the recent depreciation. This underperformance extends beyond the one-year horizon, with the company lagging behind the BSE500 index over the last three years, one year, and three months, reflecting challenges in maintaining investor confidence and market valuation.
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Valuation and Financial Metrics
Shradha AI Technologies Ltd currently holds a Mojo Score of 43.0 and a Mojo Grade of Sell, downgraded from Hold as of 12 Nov 2025. The company’s market capitalisation grade stands at 4, indicating a relatively modest market cap within its sector. The stock’s valuation metrics reveal a Price to Book Value of 2.5, which is considered very expensive relative to its peers’ average historical valuations. Despite this, the company’s Price/Earnings to Growth (PEG) ratio is 0.4, suggesting that earnings growth is not fully reflected in the current price.
The company’s Return on Equity (ROE) is 14.8%, which, while positive, has not been sufficient to support the stock price amid broader market pressures. The low Debt to Equity ratio, averaging zero, indicates a conservative capital structure with minimal leverage, which typically reduces financial risk but has not translated into price stability in this instance.
Operational and Profitability Trends
Despite the stock’s price decline, Shradha AI Technologies Ltd has demonstrated healthy growth in its operating profit, which has increased at an annual rate of 116.97%. The latest half-year financials show net sales of Rs.10.46 crores, growing by 59.69%, and a profit after tax (PAT) of Rs.5.99 crores, up by 40.28%. The company’s Return on Capital Employed (ROCE) for the half-year period reached a high of 20.16%, indicating efficient use of capital in generating earnings.
Majority ownership remains with the promoters, which often provides stability in governance and strategic direction. However, this has not prevented the stock from experiencing significant price depreciation over the past year.
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Summary of Key Concerns
The stock’s fall to a 52-week low of Rs.30.26 reflects a combination of valuation concerns and sustained underperformance relative to the broader market and sector peers. While the company’s financial results show growth in sales and profits, these have not been sufficient to counterbalance the market’s cautious stance. The steep decline in share price despite positive profit growth and a strong operating profit trajectory suggests that investors remain wary of the stock’s valuation and relative performance metrics.
Additionally, the stock’s trading below all major moving averages signals a persistent negative trend, which may continue to weigh on sentiment in the near term. The contrast with the Sensex’s relative strength highlights the stock’s specific challenges within the Computers - Software & Consulting sector.
Conclusion
Shradha AI Technologies Ltd’s recent stock price movement to a 52-week low underscores the complexities faced by the company in aligning market valuation with its financial performance. The stock’s current metrics, including a Mojo Grade of Sell and a low Mojo Score, reflect the market’s cautious view. While the company maintains solid fundamentals such as low debt and robust profit growth, these factors have yet to translate into positive price momentum amid sector and market dynamics.
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