Shradha AI Technologies Ltd Stock Hits 52-Week Low Amidst Continued Downtrend

Stock Performance and Market Context

The stock has been on a downward trajectory for the last two consecutive days, losing 6.39% in returns during this period. Today’s decline of 2.39% further underperformed the sector by 1.07%, with Shradha AI Technologies Ltd trading below all key moving averages – including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish sentiment around the stock.

In contrast, the Sensex opened higher at 82,418.78 points, gaining 142.71 points (0.17%) and was trading near 82,401.03 points (0.15%) at the time of reporting. The benchmark index remains 4.56% shy of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. Despite this positive market environment, Shradha AI Technologies Ltd has lagged significantly.

Over the past year, the stock has delivered a negative return of 49.70%, starkly contrasting with the Sensex’s positive 10.43% gain. The 52-week high for the stock was Rs.52, indicating a near 52% drop from that peak.

Financial Metrics and Profitability Trends

Shradha AI Technologies Ltd’s quarterly financials reveal a challenging period. The Profit After Tax (PAT) for the latest quarter stood at Rs.1.47 crore, representing a sharp decline of 48.1% compared to the previous four-quarter average. Similarly, the Profit Before Depreciation, Interest, and Taxes (PBDIT) hit a low of Rs.1.42 crore, with the operating profit to net sales ratio dropping to 0.00%, the lowest recorded in recent quarters.

Despite these setbacks, the company’s Return on Equity (ROE) remains at a moderate 14.6%. However, the valuation appears stretched, with a Price to Book Value ratio of 2, indicating the stock is priced expensively relative to its book value. This valuation is lower than the average historical valuations of its peers, suggesting some discounting by the market.

Over the past year, while the stock price has declined by nearly half, the company’s profits have grown modestly by 5.6%. The Price/Earnings to Growth (PEG) ratio stands at 3, reflecting a valuation that may not be fully aligned with earnings growth expectations.

Long-term performance has also been below par, with the stock underperforming the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in delivering shareholder returns.

Balance Sheet and Shareholding Structure

The company maintains a conservative capital structure, with an average Debt to Equity ratio of zero, signalling no reliance on debt financing. This low leverage position may provide some financial stability amid earnings volatility.

Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.

Sector and Industry Positioning

Shradha AI Technologies Ltd operates within the Computers - Software & Consulting sector, a space characterised by rapid technological evolution and intense competition. The company’s current Mojo Score is 21.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 12 Nov 2025. This rating reflects the company’s recent financial performance and market positioning.

Market capitalisation grading stands at 4, indicating a relatively modest market cap compared to larger peers. The stock’s recent price movements and financial metrics suggest it is facing headwinds within its sector, despite the broader market’s positive momentum.

Notably, the company has demonstrated healthy long-term growth in operating profit, with an annual growth rate of 41.28%. This indicates that while recent quarters have been difficult, there is an underlying capacity for expansion in core profitability.

Summary of Key Data Points

• New 52-week low price: Rs.25.1
• Consecutive two-day decline: -6.39% returns
• Underperformance vs sector today: -1.07%
• PAT (Quarterly): Rs.1.47 crore, down 48.1%
• PBDIT (Quarterly): Rs.1.42 crore, lowest recorded
• Operating profit to net sales (Quarterly): 0.00%
• ROE: 14.6%
• Price to Book Value: 2
• PEG ratio: 3
• Debt to Equity: 0 (average)
• Mojo Score: 21.0 (Strong Sell)
• Market Cap Grade: 4
• 1-year stock return: -49.70%
• 1-year Sensex return: +10.43%

Conclusion

Shradha AI Technologies Ltd’s stock reaching a 52-week low of Rs.25.1 highlights the challenges the company currently faces in the market. Despite a backdrop of positive market sentiment and gains in the broader indices, the stock has underperformed significantly. The decline is underpinned by subdued quarterly profitability, valuation concerns, and a technical position below all major moving averages. While the company maintains a clean balance sheet and has shown long-term operating profit growth, recent financial results and market performance have weighed heavily on the stock price.

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