Texmo Pipes Gains 6.61%: Technical Boost Counters Profitability Concerns

09 February: Technical Upgrade Spurs Early Week Rally

Texmo Pipes & Products Ltd opened the week on a positive note, closing at Rs.48.08, up 2.89% from the previous Friday’s close of Rs.46.73. This surge followed MarketsMOJO’s upgrade of the stock’s rating from 'Strong Sell' to 'Sell' on 09 Feb 2026, reflecting a modest improvement in technical indicators despite persistent fundamental weaknesses. The upgrade was underpinned by a Mojo Score of 31.0, signalling cautious optimism amid ongoing concerns about the company’s financial health.

The upgrade was largely driven by improved weekly technical signals such as a mildly bullish MACD and RSI, suggesting a tentative stabilisation in price momentum. However, monthly technical indicators remained mixed to negative, indicating that the stock had yet to demonstrate a sustained turnaround. The stock’s 52-week trading range remained wide, with the current price closer to the lower end, highlighting the challenges faced by the company.

10 February: Steady Gains Amid Cautious Market Sentiment

On 10 Feb, Texmo Pipes continued its upward trajectory, closing at Rs.48.62, a gain of 1.12%. The Sensex also advanced modestly by 0.25%, but Texmo Pipes outperformed the broader market. Trading volume increased significantly to 3,528 shares, indicating growing investor interest following the technical upgrade. Despite the positive price action, fundamental concerns lingered, particularly regarding the company’s low ROCE of 6.57% and weak debt servicing capacity with an EBIT to interest coverage ratio of 1.83.

11 February: Strong Q3 Results Propel Stock to Weekly High

The stock surged 9.03% on 11 Feb, closing at Rs.53.01, its highest level of the week. This sharp rise was triggered by the announcement of Texmo Pipes’ Q3 FY26 results, which, while showing a strong quarter, masked underlying profitability concerns. Net sales stood at ₹63.05 crores, but profit after tax declined by 8.3% to ₹2.33 crores, reflecting margin pressures and operational challenges.

Despite the decline in PAT, the market responded positively to the quarterly performance, possibly viewing it as a stabilisation after previous quarters of subdued growth. The volume spiked to 13,278 shares, the highest of the week, signalling heightened trading activity. However, cash and cash equivalents fell to a six-month low of ₹6.19 crores, underscoring liquidity constraints.

12 February: Profit-Taking Triggers Sharp Correction

Following the strong rally, Texmo Pipes experienced a sharp correction on 12 Feb, falling 5.66% to close at Rs.50.01. This decline contrasted with the Sensex’s 0.56% drop, indicating a more pronounced profit-taking in the stock. The volume moderated to 5,219 shares, suggesting selective selling pressure. The correction reflected investor caution amid the company’s weak fundamentals, including slow sales growth of 3.86% annually over five years and a modest operating profit increase of 3.04% per annum.

13 February: Mild Decline as Market Sentiment Turns Negative

Texmo Pipes closed the week with a slight decline of 0.38% to Rs.49.82 on 13 Feb, while the Sensex fell 1.40%, marking a broader market downturn. The stock’s relative resilience amid the market sell-off highlighted some underlying support, possibly due to the recent technical upgrade and quarterly results. Trading volume rose to 7,269 shares, indicating renewed interest despite the negative price movement.

Daily Price Performance: Texmo Pipes vs Sensex

Key Takeaways

Positive Signals: The upgrade from 'Strong Sell' to 'Sell' on 09 Feb 2026 was a key catalyst, reflecting improved technical momentum. The stock outperformed the Sensex by a wide margin, gaining 6.61% versus the index’s 0.54% decline. The strong Q3 FY26 results, despite underlying profitability concerns, provided short-term support and boosted investor confidence. The attractive valuation metrics, including a low EV/CE ratio of 0.7 and a PEG ratio of 0.1, suggest the stock is priced for its risks.

Cautionary Signals: Fundamental challenges remain significant. The company’s low ROCE of 6.57% and weak EBIT to interest coverage ratio of 1.83 highlight operational and financial vulnerabilities. The decline in PAT by 8.3% in Q3 and reduced cash reserves to ₹6.19 crores raise liquidity concerns. Technical indicators remain mixed, with monthly signals still bearish, indicating the stock has not yet achieved a sustained recovery. The sharp correction on 12 Feb underscores the volatility and profit-taking risks.

Conclusion

Texmo Pipes & Products Ltd’s performance this week was characterised by a notable technical rebound and a strong quarterly report that helped the stock outperform the broader market. However, the underlying fundamental weaknesses and mixed technical signals counsel caution. The upgrade to a Sell rating reflects a tentative stabilisation rather than a full recovery. Investors should closely monitor upcoming financial results and sector developments to assess whether the stock can sustain its recent gains or if further volatility lies ahead.

Unlock special upgrade rates for a limited period. Start Saving Now →