Recent Price Movement and Market Comparison
On the latest trading day, Tracxn Technologies recorded a decline of 1.56%, underperforming the Sensex which moved down by 0.26%. This drop contributed to a three-day consecutive fall, during which the stock lost 4.99% in value. The stock’s performance also trails its sector, with a day’s underperformance of 1.64% relative to the Commercial Services & Supplies sector.
Over longer periods, the stock’s returns have remained subdued. The one-week return stands at -4.51%, contrasting with the Sensex’s positive 0.98% over the same period. The one-month and three-month returns for Tracxn Technologies are -15.13% and -12.02% respectively, while the Sensex posted gains of 1.76% and 6.56% in these intervals. Year-to-date, the stock has declined by 42.75%, whereas the Sensex has advanced by 9.32%.
Long-Term Performance Trends
Examining the stock’s trajectory over extended horizons reveals a challenging environment. The one-year return of -45.86% contrasts sharply with the Sensex’s 6.44% gain. Over three years, Tracxn Technologies has recorded a negative return of 37.69%, while the Sensex has appreciated by 35.87%. The stock’s five- and ten-year returns remain at zero, indicating no appreciable growth, whereas the Sensex has delivered 91.45% and 227.06% respectively over these periods.
These figures highlight a persistent underperformance relative to the broader market, underscoring the stock’s difficulty in generating positive returns for shareholders over multiple time frames.
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Valuation and Moving Averages
Tracxn Technologies is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning indicates a sustained downward momentum in the stock price over both short and long-term periods.
From a valuation perspective, the stock is considered risky relative to its historical averages. The recent assessment changes reflect a challenging environment for the company’s market valuation, with returns and profitability metrics signalling caution.
Profitability and Earnings Overview
The company’s quarterly profit after tax (PAT) stood at a loss of ₹5.56 crores, representing a decline of 129.3% compared to the previous four-quarter average. Non-operating income accounted for 200% of the profit before tax (PBT), indicating that core business earnings are under pressure and that non-operating items are currently a significant component of reported profits.
Operating profit has shown a negative annual growth rate of 193.22% over the last five years, reflecting a contraction in core earnings capacity. Over the past year, profits have fallen by 1086%, a stark contrast to the stock’s return of -45.86% during the same period.
Institutional Investor Participation
Institutional investors have reduced their holdings by 2.37% in the previous quarter, now collectively holding 5.25% of the company’s shares. This decline in institutional participation may reflect a shift in market assessment regarding the company’s fundamentals and outlook.
Balance Sheet and Debt Profile
Tracxn Technologies maintains a low average debt-to-equity ratio of zero, indicating minimal reliance on debt financing. This conservative capital structure may provide some stability amid the current market pressures.
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Sector and Industry Context
Operating within the Commercial Services & Supplies sector, Tracxn Technologies’ performance contrasts with broader sector trends. The sector has generally shown resilience, whereas the stock’s returns have lagged significantly. This divergence highlights the company’s unique challenges within its industry context.
The stock’s market capitalisation grade is rated at 4, indicating a smaller market cap relative to larger peers, which may contribute to its volatility and sensitivity to market movements.
Summary of Performance Metrics
Tracxn Technologies’ recent trading activity and financial metrics paint a picture of a stock experiencing sustained downward pressure. The new 52-week and all-time low price of ₹44.01 underscores the extent of the decline. The stock’s underperformance relative to the Sensex and its sector across multiple time frames, combined with negative profitability trends and reduced institutional interest, reflect a complex market environment.
While the company’s low debt levels provide some balance sheet strength, the overall financial indicators suggest a cautious stance is warranted when analysing this stock’s current position.
Conclusion
Tracxn Technologies’ fall to an all-time low price marks a significant event in its market journey. The stock’s performance over recent days and months, coupled with its financial results and valuation metrics, illustrate the challenges faced by the company. Investors and market participants will continue to monitor these developments closely as the stock navigates this difficult phase.
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