Recent Price Movement and Market Context
On the latest trading day, Surana Solar’s stock price declined by 2.47%, underperforming its sector by 1.25%. The stock has been on a losing streak for two consecutive days, accumulating a 4.14% drop over this period. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum.
In comparison, the broader market index, Nifty, closed at 25,942.10, down 0.38% for the day, but remains 1.48% shy of its 52-week high of 26,325.80. The Nifty’s 50-day moving average remains above its 200-day moving average, indicating a generally bullish trend in the broader market, contrasting with Surana Solar’s performance. Additionally, all market capitalisation segments are experiencing declines, with small caps dragging the market down, as reflected by the Nifty Small Cap 100 index falling 0.72%.
Financial Performance and Fundamental Metrics
Surana Solar’s financial indicators reveal challenges that have contributed to its stock’s decline. Over the past year, the stock has delivered a negative return of 42.67%, starkly underperforming the Sensex, which posted a 7.62% gain over the same period. The company’s 52-week high was ₹48.57, highlighting the extent of the recent depreciation.
The company reported net sales of ₹7.19 crores for the nine months ending September 2025, representing a sharp contraction of 75.68% year-on-year. Quarterly earnings before depreciation, interest, and taxes (PBDIT) stood at a low of ₹-2.33 crores, while profit before tax excluding other income (PBT less OI) was ₹-2.94 crores, indicating continued losses.
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Credit and Profitability Concerns
The company’s ability to service its debt remains weak, as evidenced by an average EBIT to interest ratio of -1.64, signalling that earnings before interest and taxes are insufficient to cover interest expenses. This metric highlights the financial strain Surana Solar is under in managing its obligations.
Profitability metrics also remain subdued, with an average return on equity (ROE) of just 1.34%, indicating limited returns generated on shareholders’ funds. This low profitability per unit of equity further reflects the company’s struggles to generate sustainable earnings.
Valuation and Risk Profile
Surana Solar’s stock is currently trading at valuations that are considered risky relative to its historical averages. The company’s earnings have declined by 29% over the past year, compounding the negative return of 42.67% generated by the stock. This combination of falling profits and share price depreciation contributes to a challenging investment profile.
Long-term performance has also been below par, with the stock underperforming the BSE500 index over the last three years, one year, and three months. This persistent underperformance underscores the difficulties faced by the company in regaining market confidence.
Shareholding Pattern and Market Position
The majority of Surana Solar’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company operates within the Heavy Electrical Equipment industry and sector, which has seen mixed performance amid broader market fluctuations.
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Mojo Score and Market Capitalisation Grade
Surana Solar currently holds a Mojo Score of 12.0, categorised as a Strong Sell, an upgrade from its previous Sell rating as of 11 Feb 2025. This score reflects the company’s weak long-term fundamental strength and ongoing financial difficulties. The market capitalisation grade stands at 4, indicating a relatively small market cap within its sector.
These ratings encapsulate the company’s current standing in the market and provide a quantitative measure of its risk and performance profile.
Summary of Key Metrics
To summarise, Surana Solar Ltd’s stock has reached a 52-week low of ₹25.91, closing near this level at ₹26.40 on 29 Dec 2025. The stock’s recent performance includes a 2.47% decline on the day and a 4.14% drop over two days. Financial results show a significant contraction in sales and persistent losses, with profitability and debt servicing metrics remaining weak. The stock’s valuation is considered risky relative to historical norms, and it has underperformed major indices over multiple time frames.
These factors collectively illustrate the challenges faced by Surana Solar in the current market environment.
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