Stock Price Movement and Market Context
On 18 Feb 2026, Shradha AI Technologies Ltd’s share price fell by 1.80% relative to the previous close, underperforming its sector by 1.18%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This new low of Rs.26.16 contrasts sharply with its 52-week high of Rs.52, reflecting a near 50% decline over the past year.
In comparison, the Sensex, which opened positively with a gain of 102.63 points, reversed course to close 195.37 points lower at 83,358.22, down 0.11%. The benchmark index remains 3.36% below its own 52-week high of 86,159.02, trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed signals in the broader market.
Financial Performance and Valuation Metrics
Shradha AI Technologies Ltd’s recent quarterly results reveal a decline in profitability. The company reported a Profit After Tax (PAT) of Rs.1.47 crore, down 48.1% compared to the average of the previous four quarters. Operating profit before depreciation, interest, and taxes (PBDIT) also hit a low of Rs.1.42 crore in the latest quarter. Notably, the operating profit to net sales ratio dropped to 0.00%, underscoring pressure on margins.
Despite these setbacks, the company maintains a Return on Equity (ROE) of 14.6%, though this is accompanied by a relatively high Price to Book Value (P/B) ratio of 2.1, suggesting that the stock is valued expensively relative to its book value. This valuation stands in contrast to its peers, as Shradha AI Technologies is trading at a discount compared to the average historical valuations within its sector.
Long-Term and Recent Performance Trends
Over the past year, Shradha AI Technologies Ltd’s stock has declined by 35.46%, significantly underperforming the Sensex, which posted a 9.67% gain over the same period. The company’s profits, however, have increased by 5.6% during this timeframe, resulting in a Price/Earnings to Growth (PEG) ratio of 3.1, indicating that the stock price has not kept pace with earnings growth.
Further, the stock has underperformed the BSE500 index over the last three years, one year, and three months, reflecting challenges in sustaining investor confidence and market momentum. The company’s market capitalisation grade is rated 4, while its overall Mojo Score stands at 21.0, with a Mojo Grade of Strong Sell as of 12 Nov 2025, downgraded from Sell.
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Balance Sheet and Shareholding Structure
The company’s financial leverage remains minimal, with an average Debt to Equity ratio of zero, indicating a debt-free capital structure. This conservative approach to financing may provide some stability amid earnings volatility.
Promoters continue to hold the majority stake in Shradha AI Technologies Ltd, maintaining significant control over corporate governance and strategic direction.
Growth Metrics and Sector Positioning
Operating profit has exhibited a healthy long-term growth rate, expanding at an annualised rate of 41.28%. This suggests that despite recent earnings pressure, the company has demonstrated capacity for growth in its core operations over a longer horizon.
Within the Computers - Software & Consulting sector, Shradha AI Technologies Ltd’s current valuation and performance metrics place it below many peers, reflecting the challenges it faces in regaining market favour.
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Summary of Key Metrics
Shradha AI Technologies Ltd’s current Mojo Score of 21.0 and a Strong Sell grade reflect the market’s cautious stance. The downgrade from Sell to Strong Sell on 12 Nov 2025 underscores the deteriorating sentiment. The stock’s underperformance relative to the Sensex and sector peers, combined with declining quarterly profits and valuation concerns, contribute to this assessment.
While the company’s low debt and long-term operating profit growth provide some positive context, the recent price action and financial results highlight the challenges faced by Shradha AI Technologies Ltd in the current market environment.
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