Shradha AI Technologies Ltd Stock Hits 52-Week Low at Rs.25.65

Stock Price Movement and Market Context

On 20 Feb 2026, Shradha AI Technologies Ltd’s share price touched Rs.25.65, the lowest level recorded in the past year. This new low comes after a period of sustained downward pressure, with the stock trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Despite this, the stock outperformed its sector by 0.79% on the day, showing a modest recovery after two consecutive days of decline.

In contrast, the broader market displayed resilience. The Sensex, after opening 225.65 points lower, rebounded sharply by 518.29 points to close at 82,790.78, up 0.35%. The index remains within 4.07% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. However, Shradha AI Technologies Ltd’s performance over the past year has lagged significantly behind, with a negative return of 39.65% compared to the Sensex’s positive 9.32%.

Financial Performance and Valuation Metrics

The company’s quarterly financial results reveal several areas of concern. 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%, indicating minimal profitability from core operations.

Despite these setbacks, Shradha AI Technologies Ltd maintains a Return on Equity (ROE) of 14.6%, which is respectable within its sector. However, the stock’s valuation appears stretched, trading at a Price to Book Value ratio of 2.1, which is considered expensive relative to its peers’ historical averages. The company’s Price/Earnings to Growth (PEG) ratio stands at 3, signalling that the market may be pricing in growth expectations that are not currently reflected in earnings trends.

Long-Term Trends and Shareholder Structure

Over the last year, Shradha AI Technologies Ltd has underperformed not only the Sensex but also the broader BSE500 index across multiple time frames including one year, three years, and three months. The stock’s cumulative return of -39.65% contrasts with a modest 5.6% increase in profits over the same period, highlighting a disconnect between earnings growth and market valuation.

On a positive note, the company has demonstrated healthy long-term growth in operating profit, with an annualised growth rate of 41.28%. This suggests that while recent quarterly results have been subdued, the underlying business has shown resilience over a longer horizon.

Financial leverage remains minimal, with an average Debt to Equity ratio of zero, indicating a conservative capital structure. The majority ownership rests with promoters, which may provide stability in governance and strategic direction.

Mojo Score and Analyst Ratings

MarketsMOJO assigns Shradha AI Technologies Ltd a Mojo Score of 21.0, categorising it as a Strong Sell. This represents a downgrade from the previous Sell rating issued on 12 Nov 2025. The Market Cap Grade is rated at 4, reflecting the company’s relatively modest market capitalisation within its sector.

The downgrade to Strong Sell is driven by the deteriorating profitability metrics and the stock’s sustained underperformance relative to sector benchmarks and the broader market indices.

Summary of Key Metrics

To summarise, the stock’s new 52-week low of Rs.25.65 is a reflection of several converging factors:

• Significant quarterly declines in PAT and PBDIT, with operating profit margins at a minimal level.
• Valuation metrics indicating a premium Price to Book Value despite subdued earnings growth.
• Underperformance against the Sensex and BSE500 indices over multiple time frames.
• Trading below all major moving averages, signalling a bearish technical trend.
• Conservative capital structure with zero debt, and promoter majority ownership.

While the stock has shown some short-term gains following the recent low, it remains below critical technical and fundamental thresholds.

Market and Sector Comparison

Within the Computers - Software & Consulting sector, Shradha AI Technologies Ltd’s performance contrasts with the broader market’s positive momentum. The Sensex’s recovery and proximity to its 52-week high underscore the divergence between large-cap market leaders and smaller, more volatile stocks such as Shradha AI Technologies Ltd.

This divergence is further emphasised by the stock’s Mojo Grade downgrade and the gap between its valuation and sector averages, highlighting the challenges faced in aligning market expectations with company fundamentals.

Conclusion

Shradha AI Technologies Ltd’s fall to a 52-week low of Rs.25.65 encapsulates a period of financial strain and market underperformance. The combination of declining quarterly profits, stretched valuation metrics, and technical weakness has contributed to the stock’s current position. Despite some positive long-term operating profit growth and a debt-free balance sheet, the stock remains under pressure relative to its sector and the broader market indices.

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