Key Events This Week
09 Feb: Q3 FY26 results announced, Step Two returns to profit
10 Feb: Valuation metrics upgraded, signalling fair market valuation
13 Feb: Week closes at Rs.29.00, outperforming Sensex
09 Feb 2026: Return to Profit Boosts Confidence
Step Two Corporation reported its Q3 FY26 results on 09 Feb, marking a return to profitability after a volatile quarter. This announcement was met with a positive reaction in the market, with the stock rising 0.69% to close at Rs.29.00. The volume on this day was relatively healthy at 35 lakh shares, indicating investor interest in the turnaround narrative. Meanwhile, the Sensex outperformed with a 1.04% gain, closing at 37,113.23, but Step Two’s gain was notable given its micro-cap status and recent volatility.
The return to profit was a key catalyst, signalling operational stabilisation for the NBFC. This development helped the stock buck the broader market trend in the days that followed, as investors digested the implications of improved earnings.
10 Feb 2026: Valuation Upgrade Reflects Changing Market Sentiment
On 10 Feb, Step Two Corporation’s valuation parameters were revised, shifting from a previously risky stance to a fair valuation grade. The stock price remained steady at Rs.29.00, with no change on the day, while the Sensex gained a modest 0.25% to 37,207.34. The valuation upgrade was driven by improved price-to-earnings (P/E) and enterprise value multiples, with the P/E ratio at 12.11 and EV to EBITDA at 10.33, placing the company in a more balanced position relative to its NBFC peers.
This upgrade was significant given the prior concerns about riskiness. Compared to peers such as Mufin Green and Ashika Credit, which trade at very high multiples, Step Two’s valuation now appears more reasonable. However, the company’s return on capital employed (ROCE) remained deeply negative at -26.19%, highlighting ongoing operational challenges despite a robust return on equity (ROE) of 31.44%.
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11-13 Feb 2026: Price Stability Amid Market Weakness
From 11 to 13 Feb, Step Two Corporation’s stock price remained unchanged at Rs.29.00 despite a declining Sensex. On 11 Feb, the Sensex inched up 0.13% to 37,256.72, but the stock saw no movement with low volumes of 10 lakh shares. The following two days saw the Sensex fall sharply, closing at 37,049.40 (-0.56%) on 12 Feb and 36,532.48 (-1.40%) on 13 Feb. Throughout this period, Step Two’s share price held firm, reflecting resilience amid broader market weakness.
This price stability suggests that investors may be viewing the stock as a defensive micro-cap play, supported by the recent profit announcement and valuation upgrade. The week closed with the stock outperforming the Sensex by 1.23%, a notable achievement given the benchmark’s decline.
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Weekly Price Performance: Step Two Corporation vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.29.00 | +0.69% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.29.00 | +0.00% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.29.00 | +0.00% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.29.00 | +0.00% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.29.00 | +0.00% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: Step Two Corporation’s return to profit in Q3 FY26 was a pivotal event that helped stabilise the stock price and improve investor sentiment. The upgrade in valuation metrics to a fair grade, with a P/E of 12.11 and EV to EBITDA of 10.33, positions the stock attractively relative to expensive peers in the NBFC sector. The robust ROE of 31.44% indicates strong profitability for equity holders, supporting the stock’s resilience despite broader market weakness.
Cautionary Signals: Despite the improved valuation, the company’s ROCE remains deeply negative at -26.19%, signalling operational inefficiencies or capital structure challenges that could constrain sustainable growth. The stock’s price remained flat for four consecutive trading days, suggesting limited momentum. Additionally, the Mojo Grade remains at Strong Sell with a low Mojo Score of 20.0, reflecting ongoing risk concerns. Investors should remain cautious given these mixed fundamentals.
Conclusion
Step Two Corporation Ltd’s performance in the week ending 13 Feb 2026 was characterised by a modest price gain of 0.69%, outperforming the Sensex’s 0.54% decline. The company’s return to profitability and a significant upgrade in valuation metrics were the main drivers behind this relative strength. However, persistent operational challenges reflected in a negative ROCE and a Strong Sell Mojo Grade temper the optimism. The stock’s stability amid a weakening market suggests cautious investor confidence, but the mixed financial signals warrant careful monitoring in the coming weeks.
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