Recent Price Movement and Market Context
On 22 Jan 2026, Smartlink Holdings Ltd's stock demonstrated notable volatility, opening with a gap up of 9.52% and reaching an intraday high of Rs 128.9. Despite this intraday strength, the stock remains close to its 52-week low, just 4.9% above the Rs 116.5 mark. The day’s trading saw a 4.08% increase, outperforming the IT - Hardware sector by 3.33%. However, the stock continues to trade below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling persistent downward pressure.
In contrast, the broader market, represented by the Sensex, opened higher at 82,459.66 points, gaining 0.67% at the open and trading at 82,270.40 points (0.44% gain) during the day. The Sensex remains 4.73% below its 52-week high of 86,159.02 but has experienced a three-week consecutive decline, losing 4.07% over that period. Mid-cap stocks have led the market rally, with the BSE Mid Cap index gaining 1.21% on the day.
Long-Term Performance and Valuation Concerns
Smartlink Holdings Ltd’s one-year stock performance stands at a negative 31.94%, significantly underperforming the Sensex’s positive 7.68% return over the same period. The stock’s 52-week high was Rs 193, highlighting the extent of the decline. Over the last three years, the company has also underperformed the BSE500 index, reflecting sustained challenges in both long-term and near-term performance.
Valuation metrics indicate the stock is trading at levels considered risky relative to its historical averages. Despite a 35.3% increase in profits over the past year, the company’s price-to-earnings-to-growth (PEG) ratio remains low at 0.3, suggesting the market is pricing in significant caution.
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Fundamental Metrics and Profitability Analysis
The company’s long-term fundamental strength remains weak, with a compound annual growth rate (CAGR) of operating profits declining at -9.12% over the past five years. This trend has contributed to the stock’s downgrading to a Strong Sell rating, upgraded from Sell on 12 May 2025, reflecting deteriorated confidence in its financial health.
Smartlink Holdings Ltd’s ability to service debt is limited, as indicated by a poor average EBIT to interest ratio of 1.95. This suggests that earnings before interest and taxes are only marginally sufficient to cover interest expenses, raising concerns about financial stability.
Profitability metrics also highlight challenges, with an average return on equity (ROE) of just 4.15%, signalling low returns generated on shareholders’ funds. Despite this, the company reported a significant growth in profit after tax (PAT) for the latest six months, reaching Rs 4.04 crore, which represents a remarkable increase of 1,656.52%. Operating profit to net sales ratio for the quarter peaked at 2.22%, and profit before tax excluding other income (PBT less OI) reached Rs 0.41 crore, the highest recorded in recent quarters.
Shareholding and Market Capitalisation
The majority shareholding remains with promoters, maintaining control over the company’s strategic direction. The market capitalisation grade stands at 4, reflecting the company’s micro-cap status within the IT - Hardware sector. The Mojo Score of 17.0 and the Strong Sell Mojo Grade underline the cautious stance adopted by rating agencies and analysts.
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Technical Indicators and Volatility
From a technical perspective, Smartlink Holdings Ltd’s stock remains under pressure, trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent weakness in technical indicators suggests a lack of upward momentum in the near term.
Intraday volatility has been high, with a weighted average price volatility of 6.52% recorded on the latest trading day. Such fluctuations indicate uncertainty among market participants and contribute to the stock’s cautious trading environment.
Sector and Market Comparison
Within the IT - Hardware sector, Smartlink Holdings Ltd’s performance contrasts with broader market trends. While the Sensex has experienced a modest decline over the past three weeks, it remains significantly above its 52-week low and closer to its 52-week high. Mid-cap stocks have shown relative strength, gaining 1.21% on the day, whereas Smartlink’s stock continues to lag behind sector peers and market benchmarks.
The stock’s underperformance relative to the BSE500 index over one year and three months further emphasises the challenges faced by the company in maintaining competitive positioning within its industry.
Summary of Key Metrics
To summarise, Smartlink Holdings Ltd’s stock has reached a 52-week low near Rs 116.5, reflecting a decline of approximately 39.6% from its 52-week high of Rs 193. The company’s financial indicators reveal weak long-term growth, limited debt servicing capacity, and modest profitability. Despite recent improvements in quarterly profit metrics, the overall trend remains subdued.
The stock’s current Mojo Grade of Strong Sell and a Mojo Score of 17.0, upgraded from Sell in May 2025, underline the cautious outlook. Trading below all major moving averages and exhibiting high volatility, the stock remains under pressure in a market environment where mid-cap stocks and the broader Sensex have shown relative resilience.
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