Key Events This Week
Feb 09: Stellar Q3 profit surge announced, stock jumps 5.75%
Feb 10: Outstanding quarterly financial performance reported, stock gains 5.54%
Feb 11: Valuation shift signals renewed price attractiveness, stock dips slightly -0.31%
Feb 12-13: Profit-taking amid broader market weakness, stock declines 5.13% over two days
Feb 09: Stellar Q3 Profit Surge Sparks Initial Rally
On 9 February 2026, Shree Ajit Pulp announced a remarkable 305% surge in quarterly profits for Q3 FY26, signalling a strong recovery in its core operations. The stock responded positively, closing at ₹245.50, up 5.75% from the previous close of ₹232.15. This sharp gain was supported by a volume of 8,335 shares, reflecting heightened investor interest. The Sensex also rose 1.04% that day, but the stock’s outperformance was notable.
The profit surge was driven by robust revenue growth, margin expansion, and operational efficiencies, setting the tone for the week’s bullish sentiment.
Feb 10: Outstanding Quarterly Financials Reinforce Confidence
The momentum continued on 10 February as Shree Ajit Pulp reported outstanding quarterly financial performance for the quarter ended December 2025. Net sales surged 50.42% to ₹349.31 crores over six months, while operating profit margins expanded to 13.18%. The company posted its highest quarterly PBDIT of ₹23.30 crores and net profit after tax of ₹7.53 crores, with EPS reaching ₹8.46.
These strong fundamentals were reflected in the stock’s 5.54% gain to ₹259.10 on a volume of 8,497 shares, further outperforming the Sensex’s modest 0.25% rise. Operational metrics such as inventory turnover (8.09 times) and debtor turnover (7.08 times) also improved, signalling efficient working capital management.
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Feb 11: Valuation Shift Signals Renewed Price Attractiveness
On 11 February, the stock experienced a slight pullback, closing at ₹258.30, down 0.31% on lower volume of 2,268 shares. This followed a valuation reassessment that upgraded Shree Ajit Pulp’s price attractiveness from very attractive to attractive, reflecting a nuanced re-rating amid improving fundamentals and market sentiment.
The stock traded near ₹259.60 intraday, supported by a favourable P/E ratio of 9.44 and P/BV of 0.89, positioning it competitively within the Paper, Forest & Jute Products sector. Enterprise value multiples such as EV/EBITDA at 5.88 and EV/Capital Employed at 0.94 further underscored operational efficiency. The company’s Mojo Score was upgraded to 82.0, signalling strong buy sentiment.
Feb 12-13: Profit-Taking Amid Broader Market Weakness
The final two trading days saw profit-taking and broader market weakness, with the stock declining 0.89% to ₹256.00 on 12 February and sharply falling 4.24% to ₹245.15 on 13 February. Volumes also tapered off significantly, with only 1,651 and 584 shares traded respectively. The Sensex declined 0.56% and 1.40% on these days, reflecting a risk-off mood in the market.
Despite the pullback, the stock closed the week well above its opening price, maintaining a strong relative performance versus the Sensex’s 0.54% weekly decline.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.245.50 | +5.75% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.259.10 | +5.54% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.258.30 | -0.31% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.256.00 | -0.89% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.245.15 | -4.24% | 36,532.48 | -1.40% |
Key Takeaways
Strong Earnings Momentum: The 305% profit surge and 50.42% revenue growth highlight a robust operational recovery, supported by margin expansion and improved working capital metrics.
Valuation and Market Sentiment: The shift from very attractive to attractive valuation grade, combined with a Mojo Score upgrade to 82.0 (Strong Buy), reflects growing investor confidence and a positive outlook on the company’s fundamentals.
Relative Outperformance: The stock’s 5.60% weekly gain contrasts with the Sensex’s 0.54% decline, underscoring its resilience amid mixed market conditions.
Caution on Interest Costs and Profit-Taking: Despite strong results, rising interest expenses remain a concern. The late-week price correction amid broader market weakness suggests some profit-taking and volatility risk.
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Conclusion
Shree Ajit Pulp and Paper Ltd demonstrated a strong weekly performance driven by exceptional quarterly results and a favourable valuation reassessment. The stock’s ability to outperform the Sensex amid a mixed market environment highlights its improving fundamentals and investor appeal. While rising interest costs and recent profit-taking warrant attention, the company’s operational efficiency, margin expansion, and upgraded Mojo Score provide a solid foundation for sustained value creation. Investors should continue to monitor the evolving market dynamics and company-specific developments as the paper and forest products sector navigates ongoing challenges.
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