Price Movement and Market Context
On the day in question, Tracxn Technologies recorded a modest gain of 0.20%, contrasting with the broader Sensex index which declined by 0.16%. Despite this slight uptick, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained pressure on its price levels. The stock’s performance today also underperformed its sector by 0.26%, highlighting relative weakness within its industry group.
Over the past week, the stock has declined by 9.00%, while the Sensex showed a marginal fall of 0.08%. The one-month period reveals a sharper decline of 16.10% for Tracxn Technologies, in contrast to a 2.83% gain in the Sensex. Extending the view to three months, the stock’s value has contracted by 19.71%, whereas the Sensex advanced by 5.93% during the same period.
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Long-Term Performance Trends
Tracxn Technologies’ long-term performance reveals a stark contrast to broader market indices. Over the past year, the stock has declined by 50.72%, while the Sensex has recorded a gain of 4.73%. Year-to-date figures show a 47.08% reduction in the stock’s value, compared with a 9.52% increase in the Sensex. The three-year performance further emphasises the stock’s challenges, with a 50.57% decrease against a 36.76% rise in the benchmark index.
Notably, the stock has not registered any growth over the five- and ten-year periods, remaining flat at 0.00%, whereas the Sensex has appreciated by 87.63% and 238.10% respectively over these durations. This persistent underperformance highlights the difficulties faced by Tracxn Technologies in generating sustained shareholder value relative to the broader market.
Financial Metrics and Profitability
Financial data for the company indicates significant pressure on profitability. The operating profit has shown an annual rate of change of -193.22% over the last five years, signalling a contraction in core earnings capacity. The latest quarterly results reveal a net loss after tax (PAT) of ₹-5.56 crores, representing a fall of 129.3% compared to the previous four-quarter average.
Non-operating income for the quarter accounts for 200.00% of profit before tax (PBT), suggesting that earnings are being supported by sources outside the company’s primary business activities. This reliance on non-operating income may reflect challenges in generating consistent operational profits.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) are negative, which adds to the risk profile of the stock when compared to its historical valuation averages. Over the past year, profits have declined by 1086%, underscoring the severity of the financial contraction.
Investor Participation and Shareholding Patterns
Institutional investors have reduced their holdings by 2.37% over the previous quarter, now collectively holding 5.25% of the company’s shares. Given the analytical resources typically available to institutional investors, this reduction may reflect a reassessment of the company’s fundamentals within professional investment circles.
Such a decline in institutional participation can influence market sentiment and liquidity, potentially contributing to the stock’s ongoing price pressures.
Debt and Capital Structure
On a positive note, Tracxn Technologies maintains a low average debt-to-equity ratio, recorded at zero times. This indicates an absence of significant leverage on the balance sheet, which may provide some financial flexibility despite the challenges in profitability and market valuation.
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Summary of Market Position
Tracxn Technologies’ stock has experienced a prolonged period of underperformance relative to both its sector and the broader market indices. The recent all-time low price of ₹40.1 reflects a culmination of multiple factors, including sustained declines in profitability, reduced institutional interest, and a lack of upward momentum in price trends.
While the company’s low debt levels may offer some balance sheet stability, the financial results and market data indicate ongoing challenges in generating positive returns for shareholders. The stock’s position below all major moving averages further emphasises the subdued market sentiment surrounding the company.
Investors and market participants will continue to monitor Tracxn Technologies’ performance within the Commercial Services & Supplies sector as it navigates these conditions.
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