Shradha AI Technologies Ltd Stock Falls to 52-Week Low of Rs.26.01

Stock Price Movement and Market Context

The stock of Shradha AI Technologies Ltd (Stock ID: 10038992) declined by 1.51% today, closing at Rs.26.01, which is its lowest level in the past year. Despite this drop, the stock marginally outperformed its sector by 1.07% on the day. The broader market, represented by the Sensex, experienced a sharp reversal after a positive start, falling by 576.04 points to trade at 83,393.78, down 0.41%. The Sensex remains 3.32% below its 52-week high of 86,159.02, with the index trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed technical signals.

Shradha AI Technologies is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing downward momentum in its share price. This technical positioning reflects sustained selling pressure over multiple time frames.

Financial Performance and Valuation Metrics

Over the past year, Shradha AI Technologies has delivered a negative return of 36.11%, significantly underperforming the Sensex, which gained 9.84% over the same period. The stock’s 52-week high was Rs.52, indicating a near 50% decline from its peak.

Quarterly financial results reveal a subdued performance. The company reported a Profit After Tax (PAT) of Rs.1.47 crore, representing a sharp decline of 48.1% compared to the average of the previous four quarters. Earnings before depreciation, interest, and taxes (PBDIT) also hit a low of Rs.1.42 crore in the latest quarter. Operating profit as a percentage of net sales dropped to 0.00%, marking the lowest level recorded.

Return on Equity (ROE) stands at 14.6%, which is moderate, but the stock’s valuation appears expensive with a Price to Book (P/B) ratio of 2.1. This valuation is at a discount relative to the historical average valuations of its peers, suggesting some market caution despite the premium multiple.

Long-Term and Sectoral Performance

In addition to the recent downturn, Shradha AI Technologies has underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in maintaining competitive returns. Despite this, the company has demonstrated healthy long-term growth in operating profit, which has increased at an annual rate of 41.28%.

The company operates with a low average debt-to-equity ratio of zero, reflecting a conservative capital structure with minimal reliance on debt financing. Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Shradha AI Technologies a Mojo Score of 21.0, categorising it as a Strong Sell. This rating was upgraded from a Sell to Strong Sell on 12 Nov 2025, reflecting deteriorating fundamentals and valuation concerns. The company’s Market Cap Grade is 4, indicating a mid-tier market capitalisation relative to its sector peers.

The downgrade in rating aligns with the company’s recent financial results and stock price performance, signalling caution among market analysts regarding the stock’s near-term prospects.

Summary of Key Financial Indicators

The company’s PEG ratio stands at 3, indicating that earnings growth is not currently aligned favourably with its price appreciation. While profits have risen by 5.6% over the past year, this has not translated into positive stock returns, highlighting a disconnect between earnings growth and market valuation.

Operating profit margins have contracted significantly, with the latest quarter showing the lowest operating profit to net sales ratio recorded. This suggests pressure on the company’s ability to convert sales into operating earnings effectively.

Despite the stock’s recent decline to Rs.26.01, the valuation remains relatively expensive compared to historical peer averages, which may reflect market concerns about sustainability of earnings and growth prospects.

Broader Market and Sectoral Considerations

The Computers - Software & Consulting sector, in which Shradha AI Technologies operates, has experienced mixed performance in recent months. While some peers have maintained steady growth, Shradha AI Technologies’ stock has lagged behind, as evidenced by its relative underperformance against sector benchmarks.

The broader market volatility, as seen in the Sensex’s sharp intraday reversal, adds to the challenging environment for stocks like Shradha AI Technologies, which are trading below key technical levels and facing valuation pressures.

Conclusion

Shradha AI Technologies Ltd’s stock reaching a 52-week low of Rs.26.01 reflects a combination of subdued quarterly earnings, valuation concerns, and technical weakness. The company’s financial metrics, including a significant drop in PAT and operating profit margins, alongside a strong sell rating from MarketsMOJO, underscore the challenges faced by the stock in the current market environment. While the company maintains a low debt profile and has shown long-term operating profit growth, these factors have not been sufficient to support the stock price amid broader market pressures and sectoral dynamics.

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