Stock Price Movement and Market Context
On the day in question, Sparc Electrex Ltd’s share price declined sharply by 9.46%, underperforming its sector by 11.05%. This new low of Rs.4.21 contrasts starkly with its 52-week high of Rs.17.70, reflecting a steep depreciation of 76.2% from that peak. The stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
Meanwhile, the broader market, represented by the Sensex, opened lower at 81,947.31, down 619.06 points (-0.75%) and was trading at 82,187.25 (-0.46%) during the session. The Sensex remains 4.83% below its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, indicating a relatively healthier market trend compared to Sparc Electrex’s trajectory.
Financial Performance and Fundamental Assessment
Over the past year, Sparc Electrex Ltd has delivered a negative return of 72.82%, a stark contrast to the Sensex’s positive 7.11% gain over the same period. The company’s financial health remains fragile, with a Mojo Score of 12.0 and a Mojo Grade recently downgraded from Sell to Strong Sell as of 12 Feb 2024. This downgrade reflects deteriorating fundamentals and heightened risk.
The company’s long-term fundamental strength is weak, primarily due to operating losses and a poor ability to service debt. Its average EBIT to interest ratio stands at -0.64, indicating insufficient earnings before interest and taxes to cover interest expenses. Additionally, the average return on equity (ROE) is a modest 4.82%, signalling low profitability relative to shareholders’ funds.
Operational and Liquidity Indicators
Recent financial results for the half-year ended September 2025 were flat, offering little indication of improvement. The debtors turnover ratio for the half-year is notably low at 0.21 times, suggesting challenges in efficiently collecting receivables. Furthermore, the company reported negative EBITDA, which adds to the risk profile and raises concerns about cash flow generation.
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Valuation and Risk Considerations
The stock is currently trading at valuations that are considered risky relative to its historical averages. Over the last year, profits have declined by 234%, a severe contraction that has contributed to the stock’s steep price fall. The company’s consistent underperformance is evident not only in the past year but also across the last three annual periods, where it has lagged behind the BSE500 benchmark index.
Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics. The market capitalisation grade stands at 4, reflecting a relatively small market cap compared to larger peers in the sector.
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Summary of Key Metrics
To summarise, Sparc Electrex Ltd’s key financial and market metrics as of 30 Jan 2026 are:
- New 52-week low price: Rs.4.21
- Day’s price change: -9.46%
- One-year stock return: -72.82%
- Sector performance comparison: Underperformed by 11.05% on the day
- Mojo Score: 12.0 (Strong Sell)
- Market Cap Grade: 4
- EBIT to Interest Ratio (avg): -0.64
- Return on Equity (avg): 4.82%
- Debtors Turnover Ratio (HY): 0.21 times
- Profit decline over past year: -234%
Market and Sector Positioning
Within the Computers - Software & Consulting sector, Sparc Electrex Ltd’s performance contrasts with broader market trends. While the Sensex and sector indices have shown resilience, the company’s stock has consistently lagged, reflecting challenges in financial health and market confidence. The stock’s current trading below all major moving averages further emphasises the prevailing bearish sentiment.
Conclusion
The fall to a new 52-week low of Rs.4.21 for Sparc Electrex Ltd underscores ongoing difficulties faced by the company in maintaining profitability and market valuation. The combination of weak debt servicing capacity, low returns on equity, negative EBITDA, and poor receivables turnover has contributed to a challenging investment profile. Despite broader market strength, the stock’s persistent underperformance and deteriorating fundamentals have culminated in this significant price decline.
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