Key Events This Week
Feb 9: Stock opens strong at Rs.1,776.70 (+2.24%) amid positive market sentiment
Feb 10: Negative financial trend reported; stock declines 1.68% to Rs.1,746.90
Feb 12: Continued margin compression leads to 3.26% drop to Rs.1,665.60
Feb 13: Valuation shifts signal changing market sentiment; stock rebounds 2.56% to Rs.1,708.30
Strong Start on Monday Amid Broad Market Gains
Thejo Engineering began the week on a positive note, closing at Rs.1,776.70 on 9 Feb 2026, a gain of 2.24% from the previous close. This outperformance was in line with the Sensex’s 1.04% rise to 37,113.23, reflecting broad market optimism. The stock’s volume was relatively modest at 5,102 shares, suggesting measured investor interest despite the price uptick.
Negative Financial Trend Report Dampens Sentiment on Tuesday
On 10 Feb, the company reported a negative financial trend amid mixed quarterly results, which weighed heavily on the stock. Despite record net sales of ₹162.25 crores for the quarter ended December 2025, Thejo Engineering’s profitability contracted sharply. Profit before tax excluding other income fell 30.05% to ₹12.78 crores, while profit after tax declined 17.6% to ₹10.84 crores. The operating profit margin shrank to 11.38%, the lowest in recent quarters, signalling rising cost pressures.
Consequently, the stock price declined 1.68% to Rs.1,746.90 on heavy volume of 19,043 shares, underperforming the Sensex’s modest 0.25% gain. The downgrade of the Mojo Grade to Strong Sell further intensified investor caution, reflecting concerns over deteriorating profitability and margin compression.
Continued Downtrend on Wednesday and Thursday Amid Margin Pressures
The downward momentum persisted on 11 and 12 Feb, with the stock falling 1.44% and 3.26% respectively. On 11 Feb, Thejo Engineering closed at Rs.1,721.70, while the Sensex inched up 0.13% to 37,256.72, highlighting the stock’s relative weakness. Volume moderated to 9,642 shares.
On 12 Feb, the stock dropped sharply by 3.26% to Rs.1,665.60, with volume declining to 5,362 shares. This decline coincided with a broader market pullback as the Sensex fell 0.56%. The persistent margin contraction and reduced return on capital employed (ROCE) to 21.72% underscored operational challenges. Despite improved debtor turnover ratio of 4.21 times, the company struggled to translate sales growth into profitability, exacerbating investor concerns.
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Valuation Shifts and Market Sentiment on Friday
On 13 Feb, Thejo Engineering’s stock rebounded 2.56% to close at Rs.1,708.30, recovering some losses despite the Sensex’s 1.40% decline to 36,532.48. This price action reflected a recalibration of valuation perceptions amid ongoing market volatility.
The company’s price-to-earnings ratio moderated to 35.66, down from previously expensive levels, while the price-to-book value stood at 5.59. These valuation metrics, alongside an enterprise value to EBITDA ratio of 21.01, positioned Thejo Engineering as fairly valued relative to peers such as AIA Engineering and Sansera Engineering, which remain more expensive.
However, the elevated PEG ratio of 4.92 indicates that the market still prices in high growth expectations despite recent earnings pressures. The downgrade to a Strong Sell rating by MarketsMOJO, with a Mojo Score of 28.0, signals persistent caution among investors regarding near-term prospects.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.1,776.70 | +2.24% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.1,746.90 | -1.68% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.1,721.70 | -1.44% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.1,665.60 | -3.26% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.1,708.30 | +2.56% | 36,532.48 | -1.40% |
Key Takeaways from the Week
Positive Signals: Thejo Engineering achieved record quarterly net sales of ₹162.25 crores and improved its debtors turnover ratio to 4.21 times, indicating enhanced working capital management. The recent moderation in valuation metrics to a fair grade relative to peers suggests some price attractiveness.
Cautionary Signals: Profitability metrics deteriorated sharply, with profit before tax excluding other income falling 30.05% and profit after tax down 17.6%. Operating margins contracted to 11.38%, the lowest in recent quarters, while return on capital employed declined to 21.72%. The elevated PEG ratio of 4.92 and a downgrade to a Strong Sell rating highlight ongoing risks and investor scepticism.
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Conclusion: A Week of Mixed Signals Amid Financial and Valuation Challenges
Thejo Engineering Ltd’s share price experienced a volatile week, ultimately closing lower by 1.70%, underperforming the Sensex’s 0.54% decline. The week’s developments highlighted a complex interplay of strong top-line growth offset by significant margin pressures and deteriorating profitability. While improved working capital metrics and a shift to fair valuation provide some optimism, the downgrade to a Strong Sell rating and elevated PEG ratio underscore persistent risks.
Investors should remain attentive to upcoming quarterly results and sector dynamics to gauge whether Thejo Engineering can stabilise margins and capital efficiency. The current environment suggests a cautious stance as the company navigates operational challenges amid evolving market conditions.
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