Key Events This Week
Feb 11: Q2 FY26 results reveal profit recovery but highlight operational challenges
Feb 11: Valuation upgraded to Very Attractive amid mixed market performance
Feb 13: Stock closes at Rs.29.46, up 1.62% on heavy volume
Monday, 9 February: Modest Start with 1.44% Gain
Solid Stone Company Ltd began the week on a positive note, closing at Rs.26.86, up 1.44% from the previous Friday’s close of Rs.26.48. This outpaced the Sensex’s 1.04% gain to 37,113.23, signalling early investor interest. The volume was moderate at 418 shares, reflecting cautious optimism ahead of the week’s key announcements.
Tuesday, 10 February: Strong Momentum with 3.65% Jump
The stock accelerated its upward trajectory, rising 3.65% to Rs.27.84 on increased volume of 901 shares. This gain was well above the Sensex’s modest 0.25% rise to 37,207.34. The market appeared to be positioning ahead of the company’s quarterly results and valuation update expected later in the week.
Wednesday, 11 February: Results and Valuation Upgrade Drive Gains
On 11 February, Solid Stone Company Ltd reported its Q2 FY26 results, revealing a profit recovery that, while encouraging, masked deeper operational concerns. The stock closed marginally higher at Rs.27.90, up 0.22%, on relatively low volume of 305 shares. Concurrently, the company’s valuation was upgraded to Very Attractive, reflecting improved price-to-earnings and price-to-book ratios compared to peers in the miscellaneous sector.
The valuation upgrade was underpinned by a P/E ratio of 24.10 and a notably low P/BV ratio of 0.69, signalling the stock was trading at a discount to its net asset value. Enterprise value multiples such as EV/EBITDA at 8.68 further supported the conservative valuation. Despite modest profitability metrics — ROCE at 6.98% and ROE at 2.85% — the market responded positively to the improved price attractiveness amid a challenging sector environment.
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Thursday, 12 February: Continued Rally Despite Sensex Dip
Solid Stone Company Ltd extended its gains to Rs.28.99, a 3.91% increase on the day, even as the Sensex declined 0.56% to 37,049.40. The stock’s resilience amid broader market weakness highlighted investor focus on the company’s improved valuation and profit recovery narrative. Volume was relatively light at 262 shares, suggesting selective buying interest.
Friday, 13 February: Heavy Volume Boosts Price to Week High
The week concluded with Solid Stone closing at Rs.29.46, up 1.62% on heavy volume of 4,086 shares. This marked the highest closing price of the week and capped an 11.25% weekly gain. The Sensex, however, fell sharply by 1.40% to 36,532.48, underscoring the stock’s significant outperformance. The surge in volume on Friday suggests renewed investor confidence, possibly driven by the valuation upgrade and anticipation of further operational improvements.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.26.86 | +1.44% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.27.84 | +3.65% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.27.90 | +0.22% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.28.99 | +3.91% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.29.46 | +1.62% | 36,532.48 | -1.40% |
Key Takeaways from the Week
The week’s 11.25% gain in Solid Stone Company Ltd’s share price, contrasted with a 0.54% decline in the Sensex, highlights a strong relative performance driven by two main factors: the announcement of a profit recovery in Q2 FY26 and a significant upgrade in valuation metrics. The company’s P/E and P/BV ratios now position it as very attractively valued within its sector, especially compared to peers trading at premium multiples.
However, the profit recovery was accompanied by operational concerns that temper enthusiasm. The company’s modest ROCE of 6.98% and ROE of 2.85% indicate limited profitability, which, combined with a strong sell Mojo Grade of 26.0, suggests caution remains warranted. The heavy volume on Friday’s rally may indicate growing investor interest, but the stock’s long-term underperformance relative to the Sensex remains a factor to monitor.
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Conclusion
Solid Stone Company Ltd’s 11.25% weekly gain amid a declining Sensex underscores a notable shift in market perception, largely driven by improved valuation metrics and a profit recovery announcement. While the stock’s relative undervaluation presents a compelling case, the company’s operational challenges and modest profitability metrics justify the cautious Mojo Grade of Strong Sell. Investors should continue to monitor quarterly earnings and sector developments closely to assess whether the valuation attractiveness can translate into sustained price appreciation.
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