Stock Price Movement and Market Context
On 24 Nov 2025, Suyog Telematics recorded an intraday low of Rs.648.8, reflecting a drop of 2.7% during the trading session. This decline contrasts with the Telecommunication - Equipment sector, which gained 2.14% on the same day. The stock underperformed its sector by 4.21%, while the broader Sensex index showed resilience, trading 0.22% higher at 85,418.98 points after opening 88.12 points up. The Sensex is currently 0.45% below its 52-week high of 85,801.70 and has experienced a 2.65% rise over the past three weeks, supported by mega-cap stocks leading the market.
Suyog Telematics is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This technical positioning highlights the stock's current weakness relative to its recent trading history.
Long-Term Performance and Valuation Metrics
Over the last year, Suyog Telematics has recorded a return of -62.28%, a stark contrast to the Sensex’s 7.97% gain and the BSE500 index’s 6.72% rise. The stock’s 52-week high was Rs.1,969, underscoring the extent of the decline to its current level. This performance places the company well below market averages and peers within the telecom equipment sector.
Financially, the company’s net sales have shown a compound annual growth rate of 9.84% over the past five years, while operating profit has grown at a rate of 5.97% during the same period. These figures suggest modest expansion but at a pace that may not meet broader market expectations for growth.
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Recent Profitability and Interest Expense Trends
The company’s profit after tax (PAT) for the nine months ended September 2025 stood at Rs.20.16 crores, reflecting a contraction of 61.88% compared to the previous period. This decline in profitability has contributed to the stock’s subdued performance over the year.
Interest expenses for the latest six-month period amounted to Rs.11.66 crores, showing an increase of 33.11%. Despite this rise, the company maintains a relatively low Debt to EBITDA ratio of 1.40 times, indicating a manageable debt servicing capacity in relation to earnings before interest, taxes, depreciation, and amortisation.
Return on Capital Employed and Valuation Considerations
The return on capital employed (ROCE) for the half-year period is reported at 10.83%, which is on the lower side within the sector. Additionally, the company’s enterprise value to capital employed ratio stands at 1.5, suggesting a valuation that may be considered elevated relative to the returns generated.
Compared to its peers, Suyog Telematics is trading at a discount to average historical valuations, reflecting market caution. The combination of subdued profit growth, elevated interest costs, and valuation metrics contributes to the current market assessment of the stock.
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Sector and Market Dynamics
The telecom equipment sector has shown positive movement recently, with a 2.14% gain on the day Suyog Telematics hit its 52-week low. The broader market environment, as reflected by the Sensex, remains constructive with the index trading above its 50-day moving average and the 50-day average itself positioned above the 200-day average, a technical indicator often associated with bullish momentum.
Despite these favourable sector and market conditions, Suyog Telematics has not mirrored this trend, highlighting company-specific factors influencing its stock price trajectory. The divergence between the stock’s performance and that of its sector peers and the broader market underscores the challenges faced by the company in recent periods.
Summary of Key Financial Indicators
To summarise, Suyog Telematics’ key financial indicators over recent periods include:
- Net sales growth at an annual rate of 9.84% over five years
- Operating profit growth at 5.97% annually over five years
- Profit after tax for nine months at Rs.20.16 crores, down 61.88%
- Interest expense for six months at Rs.11.66 crores, up 33.11%
- ROCE at 10.83% for the half-year period
- Debt to EBITDA ratio of 1.40 times
- Enterprise value to capital employed ratio of 1.5
These figures provide a comprehensive view of the company’s financial standing and market valuation as it navigates a challenging environment.
Conclusion
Suyog Telematics’ fall to a 52-week low of Rs.648.8 reflects a combination of subdued profit growth, increased interest expenses, and valuation considerations amid a generally positive market and sector backdrop. The stock’s performance over the past year has been notably weaker than the broader market indices and its sector peers, highlighting the distinct pressures faced by the company within the telecom equipment industry.
While the broader market and sector have shown resilience and gains, Suyog Telematics remains positioned below key technical averages, signalling ongoing challenges in regaining upward momentum.
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