Stock Performance and Market Context
On the trading day, Simplex Realty Ltd’s stock recorded an intraday low of Rs.142.4, representing a decline of 4.97% from the previous close. This drop notably underperformed the Realty sector, which gained 3.78% during the same period. The stock’s day change was -4.97%, while the sector outpaced it by 8.82% in relative terms.
Over the past year, Simplex Realty Ltd has experienced a negative return of 27.70%, contrasting sharply with the Sensex’s positive 8.76% gain and the broader BSE500 index’s 9.27% rise. This divergence highlights the stock’s underperformance relative to the broader market and its sector peers.
The stock’s 52-week high was Rs.243.35, indicating a substantial decline of approximately 41.4% from that peak to the current low. Additionally, Simplex Realty is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum.
Financial and Operational Indicators
Simplex Realty Ltd’s financial health remains a concern, with the company reporting operating losses and a weak long-term fundamental strength. The company’s ability to service its debt is notably strained, reflected in a poor EBIT to interest ratio averaging -3.74. This negative ratio indicates that earnings before interest and tax are insufficient to cover interest expenses, raising questions about financial sustainability.
The company’s return on capital employed (ROCE) is negative, consistent with reported losses and subdued profitability. Operating cash flow for the fiscal year was recorded at a low of Rs. -34.75 crores, underscoring cash generation challenges. Dividend payout ratio (DPR) stands at 0.00%, reflecting the absence of dividend distribution amid financial stress.
Profitability metrics have deteriorated significantly, with profits falling by 154.9% over the past year. The company’s EBITDA is negative, further emphasising the risk profile of the stock compared to its historical valuations.
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Trading Patterns and Market Behaviour
Trading activity in Simplex Realty Ltd has been erratic, with the stock not trading on two days out of the last twenty sessions. This irregularity may reflect lower liquidity or investor caution. The stock’s consistent trading below all major moving averages further indicates a bearish trend.
Meanwhile, the broader market environment shows mixed signals. The Sensex opened with a gap up of 3,656.74 points but subsequently lost momentum, falling by 1,376.36 points to close at 83,946.84, down 2.79%. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 2.64% away. Mega-cap stocks are leading the market gains, while the Realty sector, in which Simplex Realty operates, has posted a modest gain of 3.78% on the day.
Credit and Risk Assessment
Simplex Realty Ltd’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell as of 9 June 2025, an upgrade from the previous Sell rating. The Market Cap Grade is 4, indicating a relatively small market capitalisation. The Strong Sell grade reflects the company’s weak financial metrics, negative returns, and elevated risk profile.
The company’s promoters remain the majority shareholders, maintaining control over strategic decisions. However, the financial indicators suggest challenges in sustaining growth and profitability in the current environment.
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Summary of Key Metrics
To summarise, Simplex Realty Ltd’s stock has reached a new 52-week low of Rs.142.4, reflecting a decline of nearly 42% from its 52-week high of Rs.243.35. The stock’s year-on-year performance is negative at -27.70%, significantly lagging the Sensex and sector benchmarks. Financially, the company is grappling with operating losses, negative EBITDA, and a poor EBIT to interest coverage ratio of -3.74. Operating cash flow is deeply negative at Rs. -34.75 crores, and no dividends have been declared in the recent fiscal year.
Trading patterns have been irregular, and the stock remains below all major moving averages, signalling continued downward pressure. The company’s Mojo Grade of Strong Sell reflects these challenges and the elevated risk associated with the stock.
Market and Sector Context
While Simplex Realty Ltd struggles, the Realty sector has shown resilience with a 3.78% gain on the day, and the broader market indices remain near record highs. This divergence underscores the specific difficulties faced by Simplex Realty relative to its peers and the overall market environment.
Conclusion
The fall to a 52-week low for Simplex Realty Ltd highlights ongoing financial and market challenges. The stock’s performance and fundamental indicators suggest a cautious stance is warranted when analysing this company’s current position within the Realty sector.
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