Recent Price Movement and Market Context
On the latest trading day, Tracxn Technologies recorded a decline of 0.94%, underperforming the Sensex which showed a marginal gain of 0.01%. This movement extends a six-day losing streak during which the stock has returned -11.53%. Over the past week, the stock’s returns stand at -11.07%, contrasting with the Sensex’s modest fall of -0.51%. The one-month period reveals a sharper contrast, with Tracxn Technologies posting a -22.28% return while the Sensex gained 2.17%.
Further analysis over longer durations shows the stock’s performance remains subdued. Over three months, the stock’s return is -18.30% against the Sensex’s 5.65%. The one-year return for Tracxn Technologies is -49.64%, markedly below the Sensex’s 4.29%. Year-to-date figures also reflect this trend, with the stock down by 47.03% while the Sensex has advanced 9.13%. Over three years, the stock has declined by 47.28%, whereas the Sensex has appreciated by 35.71%. The five- and ten-year returns for Tracxn Technologies remain at zero, indicating no appreciable gains, while the Sensex has recorded gains of 89.16% and 232.60% respectively over these periods.
Technical Indicators and Trading Patterns
Tracxn Technologies is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a persistent bearish sentiment among market participants. The stock’s underperformance relative to its sector, Commercial Services & Supplies, is also notable, with a daily underperformance of 0.52% compared to sector peers.
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Financial Performance and Profitability Metrics
The company’s quarterly profit after tax (PAT) stood at a negative ₹5.56 crores, reflecting 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 activities are not generating positive earnings. Over the past year, profits have fallen by 1086%, underscoring the severity of the financial situation.
Operating profit has shown a negative annual growth rate of 193.22% over the last five years, signalling a prolonged period of financial contraction. Despite this, the company maintains a low average debt-to-equity ratio of zero, suggesting limited leverage on its balance sheet.
Investor Participation and Market Sentiment
Institutional investors have reduced their holdings by 2.37% over the previous quarter, now collectively holding 5.25% of the company’s shares. This reduction in institutional participation may reflect a cautious stance given the company’s recent financial and market performance. Institutional investors typically possess greater resources and analytical capabilities to assess company fundamentals, making their withdrawal noteworthy.
Tracxn Technologies has consistently underperformed the BSE500 index over the last three annual periods, reinforcing the trend of relative weakness compared to broader market benchmarks.
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Summary of Market Position
Tracxn Technologies’ current market capitalisation grade is low, reflecting its diminished market value. The stock’s recent day change of -0.94% and its position below all major moving averages highlight ongoing downward pressure. The company operates within the Commercial Services & Supplies sector, which has seen mixed performance, but Tracxn Technologies’ returns have lagged significantly behind both sector and benchmark indices.
While the company’s low debt level may provide some financial flexibility, the negative earnings and declining institutional interest present challenges. The stock’s performance over multiple time horizons, including one, three, five, and ten years, shows a pattern of underperformance relative to the Sensex and BSE500 indices.
Conclusion
The fall of Tracxn Technologies to an all-time low of ₹40.75 marks a notable event in its trading history. The stock’s sustained decline over recent months and years, combined with negative profitability metrics and reduced institutional participation, paints a picture of a company facing significant headwinds. The contrast with broader market indices and sector peers further emphasises the extent of the stock’s challenges in the current market environment.
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