Stock Price Movement and Market Context
The stock of Surana Solar Ltd (Stock ID: 900586) has been on a downward trajectory, losing value for two consecutive days and registering a cumulative fall of 5.95% over this period. Today’s decline of 2.06% further extended the stock’s underperformance relative to its sector, which it lagged by 1.63%. The new 52-week low of Rs.25 stands in stark contrast to its 52-week high of Rs.48.47, reflecting a substantial erosion of investor value over the past year.
Technical indicators reinforce the bearish trend, with the stock currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. This contrasts with the broader market, where the Sensex opened lower by 108.48 points but remains relatively resilient, trading at 85,257.45, just 1.06% shy of its 52-week high of 86,159.02. The Sensex is also supported by bullish moving averages, with the 50-day moving average positioned above the 200-day average.
Financial Performance and Fundamental Assessment
Surana Solar’s financial metrics reveal ongoing challenges. The company reported net sales of Rs.7.19 crores for the nine months ended September 2025, representing a sharp contraction of 75.68% compared to the previous period. Quarterly earnings before depreciation, interest, and taxes (PBDIT) stood at a low of Rs.-2.33 crores, while profit before tax excluding other income (PBT less OI) was also negative at Rs.-2.94 crores. These figures underscore the company’s current earnings pressures.
Profitability ratios further highlight the company’s difficulties. The average return on equity (ROE) is a modest 1.34%, indicating limited profitability generated from shareholders’ funds. Additionally, the company’s ability to service debt is weak, with an average EBIT to interest ratio of -1.64, signalling that earnings before interest and taxes are insufficient to cover interest expenses. This financial strain contributes to the stock’s classification as a “Strong Sell” with a Mojo Score of 12.0, downgraded from a previous “Sell” rating on 11 February 2025.
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Long-Term and Recent Performance Trends
Over the past year, Surana Solar Ltd’s stock has declined by 40.84%, a stark contrast to the Sensex’s positive return of 9.34% during the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating persistent underperformance relative to broader market benchmarks.
The company’s valuation metrics suggest elevated risk, with the stock trading at levels that are considered risky compared to its historical averages. Profitability has also deteriorated, with profits falling by 29% over the past year, compounding concerns about the company’s financial health and growth prospects.
Shareholding Pattern and Market Capitalisation
Surana Solar’s shareholding structure is dominated by non-institutional investors, which may influence liquidity and trading dynamics. The company’s market capitalisation grade stands at 4, reflecting its micro-cap status within the Heavy Electrical Equipment sector. This classification often entails higher volatility and sensitivity to market fluctuations.
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Summary of Key Metrics
To summarise, Surana Solar Ltd’s current stock price of Rs.25 represents a new 52-week low, reflecting a combination of subdued sales, negative earnings, and weak financial ratios. The company’s Mojo Grade of Strong Sell and a low market cap grade underscore the challenges faced by the firm in maintaining profitability and servicing debt obligations. Despite the broader market’s relative strength, Surana Solar’s stock continues to face downward pressure, trading below all major moving averages and underperforming sector peers.
While the stock’s recent performance has been disappointing, the detailed financial and market data provide a comprehensive view of the factors contributing to its current valuation and risk profile.
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