Key Events This Week
Feb 9: Stock opens at Rs.31.70, marginal decline of 0.06%
Feb 10: Upgrade to Hold rating announced amid technical and financial improvements
Feb 12: Stock rebounds with 2.84% gain on heavy volume
Feb 13: Q3 FY26 results reveal stellar turnaround but highlight valuation concerns
Monday, 9 February: Quiet Start Amid Sensex Rally
Suratwwala Business Group Ltd opened the week at Rs.31.70, registering a slight decline of 0.06% from the previous close of Rs.31.72. This marginal dip contrasted with a robust Sensex gain of 1.04%, which closed at 37,113.23. Trading volume was subdued at 677 shares, indicating limited investor activity. The stock remained near its 52-week low, reflecting ongoing caution despite broader market optimism.
Tuesday, 10 February: Upgrade to Hold Sparks Attention Amid Sharp Decline
The company’s rating was upgraded by MarketsMOJO from 'Sell' to 'Hold' on 9 February, citing improvements in technical indicators and financial performance. This upgrade acknowledged Suratwwala’s recent operational efficiencies, including a 62.88% surge in net sales to ₹41.93 crores over six months and a PAT of ₹13.49 crores in Q2 FY25-26. Despite these positives, the stock price fell sharply by 4.42% to Rs.30.30 on heavy volume of 11,239 shares, underperforming the Sensex’s modest 0.25% gain. The downgrade in price reflected lingering concerns over the company’s long-term growth trajectory and valuation metrics.
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Wednesday, 11 February: Continued Price Pressure Despite Sensex Gains
The stock continued its downward trend, closing at Rs.29.25, down 3.47% on low volume of 915 shares. This decline occurred even as the Sensex edged higher by 0.13% to 37,256.72. The persistent selling pressure reflected investor caution amid mixed technical signals. While weekly MACD and KST indicators had turned mildly bullish, monthly indicators remained bearish, and daily moving averages continued to exert downward pressure.
Thursday, 12 February: Strong Rebound on Heavy Volume
Suratwwala staged a recovery, rising 2.84% to Rs.30.08 on a surge in volume to 41,348 shares. This rebound came despite a 0.56% decline in the Sensex to 37,049.40, signalling some stock-specific buying interest. The improved technical outlook and recent upgrade likely contributed to this positive price action. The company’s low Debt to EBITDA ratio of 1.17 times and two consecutive quarters of profit growth provided a foundation for cautious optimism among traders.
Friday, 13 February: Q3 FY26 Results Highlight Turnaround but Valuation Concerns Persist
The week closed with the stock gaining 1.26% to Rs.30.46 on volume of 7,024 shares, while the Sensex fell sharply by 1.40% to 36,532.48. Suratwwala’s Q3 FY26 results revealed a stellar turnaround in operational performance, with net sales and profitability showing marked improvement. However, the report also underscored valuation concerns, noting the company’s expensive enterprise value to capital employed ratio of 4.5 and lack of domestic mutual fund participation. These factors tempered enthusiasm despite the positive earnings momentum.
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Weekly Price Performance: Suratwwala vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.31.70 | -0.06% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.30.30 | -4.42% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.29.25 | -3.47% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.30.08 | +2.84% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.30.46 | +1.26% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: Suratwwala’s upgrade to a 'Hold' rating reflects improved technical indicators and a strong Q3 FY26 earnings turnaround, with net sales rising 62.88% over six months and a PAT of ₹13.49 crores. The company’s low Debt to EBITDA ratio of 1.17 times and operational efficiency, highlighted by a PBDIT of ₹11.06 crores, underpin a cautious optimism. The stock’s rebound on 12 and 13 February amid broader market weakness suggests selective buying interest.
Cautionary Notes: Despite short-term improvements, the stock declined 3.97% over the week, underperforming the Sensex by 3.43%. Long-term growth remains challenged, with a five-year annualised net sales decline of -10.37% and operating profit contraction of -17.02%. Valuation metrics remain expensive, with an enterprise value to capital employed ratio of 4.5 and no domestic mutual fund participation, indicating limited institutional confidence. Technical signals are mixed, with monthly indicators still bearish and daily moving averages exerting downward pressure.
Conclusion
Suratwwala Business Group Ltd’s week was characterised by a complex blend of improving fundamentals and persistent challenges. The MarketsMOJO upgrade to 'Hold' and strong quarterly results provide a foundation for cautious optimism, yet the stock’s price performance and valuation concerns temper enthusiasm. Investors should monitor the company’s ability to sustain earnings growth and operational improvements amid a mixed technical backdrop and broader market volatility. The current rating reflects a balanced view, recognising progress while acknowledging the need for further evidence of a sustained turnaround.
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