Shradha AI Technologies Ltd Stock Falls to 52-Week Low of Rs.29.95

Stock Price Movement and Market Context

The stock’s new low of Rs.29.95 represents a sharp fall from its 52-week high of Rs.63.01, reflecting a decline of over 52% within the past year. This downturn contrasts with the broader market, where the Sensex has posted a positive 7.98% return over the same period. On 8 January 2026, Shradha AI Technologies Ltd’s share price dropped by 2.34%, despite outperforming its sector by 0.76% on the day.

Market conditions have been challenging, with the Sensex opening 183.12 points lower and closing down 371.13 points at 84,406.89, a 0.65% decline. The index remains 2.08% below its 52-week high of 86,159.02. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals.

Shradha AI Technologies Ltd is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — underscoring the prevailing bearish momentum in its share price.

Financial Performance and Valuation Metrics

Despite the stock’s price decline, the company has demonstrated notable growth in its financials. Over the last six months, net sales have increased by 59.69% to Rs.10.46 crores, while profit after tax (PAT) rose by 40.28% to Rs.5.99 crores. The company’s operating profit has grown at an impressive annual rate of 116.97%, reflecting strong underlying business expansion.

Return on equity (ROE) stands at 14.8%, and the return on capital employed (ROCE) for the half-year period reached a high of 20.16%. These figures indicate efficient utilisation of capital and profitability improvements.

However, the stock’s valuation remains a concern. With a price-to-book value of 2.4, Shradha AI Technologies Ltd is considered very expensive relative to its book value. The company’s PEG ratio is 0.4, suggesting that while profits have grown, the stock price has not kept pace with earnings growth. This valuation disconnect may be contributing to the subdued market sentiment.

Long-Term and Relative Performance

Over the past year, Shradha AI Technologies Ltd has delivered a total return of -50.11%, significantly underperforming the Sensex’s positive 7.98% return. The stock has also lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in maintaining market confidence.

The company’s debt-to-equity ratio remains low, averaging zero, which reflects a conservative capital structure with minimal leverage. This financial prudence may provide some stability amid market volatility.

Shareholding and Sectoral Positioning

Promoters continue to hold a majority stake in Shradha AI Technologies Ltd, maintaining control over corporate governance and strategic direction. The company operates within the Computers - Software & Consulting sector, which has experienced mixed performance in recent months.

While the sector has faced headwinds, Shradha AI Technologies Ltd’s stock has underperformed even its peers, as reflected in its Mojo Score of 43.0 and a downgrade in Mojo Grade from Hold to Sell on 12 November 2025. The Market Cap Grade is rated 4, indicating a micro-cap status with associated liquidity and volatility considerations.

Summary of Key Metrics

Shradha AI Technologies Ltd’s current share price of Rs.29.95 is substantially below its 52-week high of Rs.63.01, reflecting a 52.5% decline. The stock’s performance over the last year has been negative at -50.11%, contrasting with the Sensex’s positive 7.98% return. The company’s financials show robust growth in sales and profits, with net sales rising 59.69% and PAT increasing 40.28% in the latest six-month period.

Valuation remains elevated with a price-to-book ratio of 2.4 and a PEG ratio of 0.4, while the Mojo Grade downgrade to Sell signals caution. The company’s low debt levels and strong operating profit growth at an annual rate of 116.97% provide some counterbalance to the stock’s price weakness.

Trading below all major moving averages, the stock’s technical indicators reflect current bearish sentiment, while the broader market shows mixed signals with the Sensex below its 50-day moving average but above its 200-day moving average.

Conclusion

Shradha AI Technologies Ltd’s fall to a 52-week low of Rs.29.95 highlights the challenges faced by the stock amid a difficult market environment and valuation concerns. Despite strong growth in operating profit and recent sales and earnings gains, the stock’s price performance has lagged significantly behind the broader market and sector peers. The downgrade in Mojo Grade to Sell and the stock’s positioning below key moving averages underscore the cautious stance reflected in market pricing as of early January 2026.

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