Sonu Infratech Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Market Performance and Price Action

On the trading day, Sonu Infratech’s stock price fell by ₹3.75, closing at ₹72.10, which is exactly at the lower circuit price band of 5%. This decline brought the stock within 4.85% of its 52-week low of ₹68.60, signalling sustained weakness over the past year. The stock’s intraday high and low were both ₹72.10, reflecting the circuit filter’s activation that prevented further downward movement.

The total traded volume was a mere 0.03 lakh shares, translating to a turnover of ₹0.02163 crore, indicating subdued liquidity despite the sharp price fall. This low volume suggests that panic selling was met with limited buying interest, leaving a significant amount of supply unfilled at lower price levels.

Sector and Market Context

Sonu Infratech’s performance was notably weaker than its peers and the broader market indices. The construction sector gained 1.56% on the day, while the Sensex rose by 0.58%. This divergence highlights the stock-specific challenges faced by Sonu Infratech, which failed to benefit from the positive sectoral momentum.

Further compounding the negative sentiment, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a persistent downtrend and lack of technical support. Such a position often deters institutional investors and long-term holders from stepping in, exacerbating selling pressure.

Investor Participation and Liquidity Concerns

Investor participation has sharply declined, with delivery volume on 19 Feb 2026 falling by 87.95% compared to the 5-day average delivery volume. The delivery volume was just 3,000 shares, signalling a lack of conviction among buyers and a possible exit by long-term holders. This drop in participation often precedes further price weakness as selling overwhelms demand.

Liquidity remains a concern for Sonu Infratech, with the stock’s traded value representing only 2% of its 5-day average traded value. This limited liquidity restricts the ability of larger investors to enter or exit positions without impacting the price significantly, which can lead to exaggerated price moves on relatively small volumes.

Fundamental and Rating Overview

Sonu Infratech operates in the construction industry, a sector that has seen mixed fortunes amid fluctuating demand and input cost pressures. The company’s market capitalisation stands at ₹79.00 crore, categorising it as a micro-cap stock with inherent volatility and risk.

MarketsMOJO currently assigns Sonu Infratech a Mojo Score of 31.0 and a Mojo Grade of Sell, reflecting deteriorated fundamentals and weak technical indicators. This is a downgrade from its previous Strong Sell grade issued on 16 Feb 2026, signalling a further decline in the company’s outlook and investor confidence.

The downgrade reflects concerns over the company’s earnings prospects, liquidity constraints, and the ongoing downtrend in its share price. Investors are advised to exercise caution and consider the elevated risk profile before initiating or adding to positions.

Implications for Investors

The sharp decline and lower circuit hit underline the heightened risk associated with Sonu Infratech’s stock at present. The combination of weak technicals, poor liquidity, and negative sentiment suggests that the stock may continue to face downward pressure in the near term.

Investors should be wary of panic selling but also recognise the limited upside potential until there is a clear turnaround in fundamentals or a significant improvement in market conditions. The stock’s proximity to its 52-week low and sustained underperformance relative to the sector and Sensex further reinforce the cautious stance.

For those holding the stock, it may be prudent to reassess portfolio exposure and consider risk mitigation strategies. Prospective investors should seek comprehensive analysis and monitor developments closely before committing capital.

Technical Outlook

From a technical perspective, Sonu Infratech’s failure to hold above key moving averages and the triggering of the lower circuit limit indicate strong bearish momentum. The unfilled supply at lower levels suggests that sellers remain dominant, and any relief rallies may be short-lived without substantial buying interest.

Traders should watch for volume spikes and price action near support levels, but given the current market dynamics, a cautious approach is warranted. The stock’s micro-cap status adds to volatility, making it susceptible to sharp swings on limited volumes.

Conclusion

Sonu Infratech Ltd’s plunge to the lower circuit on 20 Feb 2026 highlights the challenges faced by micro-cap stocks in volatile sectors like construction. Heavy selling pressure, falling investor participation, and deteriorating fundamentals have combined to push the stock to its daily loss limit, signalling a precarious position.

While the broader construction sector and market indices showed resilience, Sonu Infratech’s underperformance underscores the need for investors to carefully evaluate risk and seek better opportunities. The current Mojo Grade of Sell and recent downgrade reflect the company’s uncertain outlook, making it a less attractive proposition for risk-averse investors.

Continued monitoring of liquidity, volume trends, and fundamental developments will be essential for those tracking this stock. Until signs of recovery emerge, caution remains the watchword for market participants.

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