Key Events This Week
09 Feb: Stock surges 6.48% to Rs.341.10 following Hold rating upgrade
10 Feb: Technical momentum shifts amid mixed market signals; price retreats 2.45%
11 Feb: Continued correction with 3.22% decline to Rs.322.05
12 Feb: Minor recovery of 0.33% on subdued volume
13 Feb: Week closes at Rs.319.00, down 1.27% on the day
09 February 2026: Sharp Rally on Hold Rating Upgrade
Thomas Scott India Ltd opened the week with a robust gain of 6.48%, closing at Rs.341.10, significantly outperforming the Sensex’s 1.04% rise to 37,113.23. This surge was triggered by MarketsMOJO’s upgrade of the stock’s investment rating from 'Sell' to 'Hold', reflecting improved technical indicators and strong financial performance. The upgrade was underpinned by a stabilisation in price momentum, with technical indicators such as MACD and Bollinger Bands showing signs of easing bearishness.
Financially, the company reported a 21.4% increase in net sales for Q2 FY25-26, reaching ₹56.93 crores, alongside a record operating profit of ₹8.46 crores and a margin of 14.86%. These metrics, combined with a healthy ROCE of 16.2% and a manageable Debt to EBITDA ratio of 1.37, supported the positive reassessment. Despite the stock’s recent underperformance over the past year, the upgrade signalled a potential turning point.
10 February 2026: Technical Momentum Shifts Amid Mixed Signals
Following the previous day’s rally, the stock corrected by 2.45% to close at Rs.332.75, while the Sensex gained a modest 0.25%. The price action reflected a complex technical landscape, with indicators showing a shift from bearish to mildly bearish momentum. The Relative Strength Index (RSI) remained neutral, and Bollinger Bands presented a mixed picture with weekly bearishness contrasting monthly bullish trends.
Volume declined to 961 shares, indicating cautious trading. The Know Sure Thing (KST) oscillator and Dow Theory readings suggested a transitional phase, with mildly bullish weekly signals but no clear monthly trend. This day’s price retreat was consistent with profit-taking after the sharp gains, highlighting the stock’s sensitivity to technical developments amid sectoral headwinds.
11 February 2026: Continued Correction on Weak Volume
The stock extended its decline by 3.22% to Rs.322.05, underperforming the Sensex’s marginal 0.13% gain. Trading volume remained subdued at 1,067 shares. Technical indicators continued to reflect a cautious stance, with the MACD remaining bearish on the weekly chart and only mildly bearish monthly. The lack of strong volume support, as indicated by On-Balance Volume (OBV), suggested limited conviction behind the price moves.
This correction phase underscored the challenges faced by Thomas Scott India Ltd in sustaining momentum despite improving fundamentals. The stock remained well below its 52-week high of Rs.474.35, indicating room for recovery but also the persistence of market scepticism.
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12 February 2026: Minor Recovery on Low Volume
The stock saw a slight rebound of 0.33% to Rs.323.10, while the Sensex declined 0.56%. However, trading volume was extremely low at just 44 shares, indicating a lack of strong buying interest. Technical indicators remained mixed, with daily moving averages still mildly bearish and monthly Bollinger Bands turning bullish, suggesting a tentative stabilisation.
This muted recovery reflected investor caution amid ongoing sector challenges in garments and apparels, including raw material cost volatility and supply chain disruptions. The stock’s inability to gain meaningful traction despite positive fundamentals highlighted the need for confirmation of a sustained uptrend.
13 February 2026: Week Closes with a Modest Decline
Thomas Scott India Ltd ended the week at Rs.319.00, down 1.27% on the day and slightly below the week’s opening price. The Sensex fell 1.40%, closing at 36,532.48, marking a broader market weakness. Volume picked up to 587 shares, but the stock’s decline reflected profit-taking and lingering uncertainty about near-term momentum.
Despite the week’s volatility, the stock outperformed the Sensex by 0.12% over the five trading sessions, supported by the initial surge on the rating upgrade. The technical trend remains cautiously optimistic, with the Mojo Score at 51.0 and a Hold rating, signalling a balanced outlook amid mixed signals.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.341.10 | +6.48% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.332.75 | -2.45% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.322.05 | -3.22% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.323.10 | +0.33% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.319.00 | -1.27% | 36,532.48 | -1.40% |
Key Takeaways
Positive Signals: The upgrade to a Hold rating and a 6.48% price surge on 9 February highlighted improving technical momentum and strong financial fundamentals, including record operating profit and healthy return ratios. The stock’s outperformance relative to the Sensex over the week (+0.12%) indicates resilience amid broader market weakness.
Cautionary Notes: Subsequent price corrections and subdued volumes suggest profit-taking and investor caution. Mixed technical indicators, including bearish MACD and neutral RSI, reflect uncertainty in sustaining an uptrend. The stock remains well below its 52-week high, and sectoral headwinds in garments and apparels continue to pose challenges.
Valuation and Financials: Despite recent volatility, Thomas Scott India Ltd maintains attractive valuation metrics relative to peers, supported by consistent earnings growth and a manageable debt profile. The company’s long-term returns remain impressive, underscoring its growth potential.
Conclusion
Thomas Scott India Ltd’s week was characterised by a strong initial rally on the back of a rating upgrade and improving technical signals, followed by a period of consolidation and modest declines. The stock’s ability to outperform the Sensex despite a challenging sector environment reflects underlying financial strength and stabilising momentum. However, mixed technical indicators and low volume caution against premature optimism.
The Hold rating and Mojo Score of 51.0 encapsulate a balanced view, suggesting that while the stock may be emerging from a bearish phase, confirmation of sustained upward momentum is necessary. Investors should continue to monitor quarterly results and technical developments closely to gauge the stock’s trajectory in the coming weeks.
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