Transcorp International Ltd Gains 1.11%: Valuation and Technical Upgrades Drive Momentum

Monday, 9 February: Mojo Grade Upgrade Spurs Early Gains

On Monday, Transcorp International Ltd opened the week on a positive note, closing at Rs.28.55, up 2.00% from the previous Friday’s close of Rs.27.99. This rise coincided with MarketsMOJO’s upgrade of the company’s investment rating from Sell to Hold, reflecting stabilising financial trends and improved valuation metrics. The upgrade was underpinned by a quarterly financial trend improvement from -12 to -5, with operating profit to net sales reaching 0.86% and a quarterly PAT of Rs.1.75 crore. Despite a subdued nine-month PAT decline of 47.23%, the market responded favourably to the stabilisation signals and the company’s attractive valuation relative to peers.

Tuesday, 10 February: Continued Momentum on Valuation Appeal

Transcorp sustained its upward trajectory on Tuesday, gaining 2.14% to close at Rs.29.16. The stock outperformed the Sensex, which rose by a modest 0.25%. The valuation grade shift to attractive was a key driver, with the company’s P/E ratio at 14.52 and price-to-book value at 1.31, significantly lower than many NBFC peers such as Indiabulls and STEL Holdings. The enterprise value to EBITDA ratio of 8.80 further reinforced the stock’s reasonable pricing. These valuation improvements, coupled with a Mojo Grade upgrade, enhanced investor confidence despite the NBFC sector’s ongoing challenges.

Wednesday, 11 February: Marginal Gains Amid Mixed Market Signals

On Wednesday, the stock edged higher by 0.34% to Rs.29.26, while the Sensex advanced 0.13%. Trading volumes moderated to 19,847 shares, reflecting cautious investor sentiment. Technical indicators remained broadly bullish, supported by weekly MACD and Bollinger Bands, although monthly signals suggested some caution. The stock’s 52-week range between Rs.20.57 and Rs.34.24 indicated room for volatility, but the company’s improved fundamentals and valuation continued to underpin the price stability.

Thursday, 12 February: Price Plateau Despite Sensex Dip

Thursday saw the stock price stabilise with a marginal gain of 0.07%, closing at Rs.29.28, even as the Sensex declined by 0.56%. The trading volume was steady at 20,331 shares. This resilience amid a weakening broader market reflected the stock’s underlying technical strength and the market’s focus on its improved valuation and financial metrics. However, the modest price movement suggested some profit-taking or cautious positioning ahead of the week’s close.

Friday, 13 February: Sharp Decline Amid Broader Market Weakness

The week concluded with a notable correction as Transcorp International Ltd fell 3.35% to close at Rs.28.30, on heavy volume of 40,905 shares. This decline outpaced the Sensex’s 1.40% drop, signalling a sharper reaction to the broader market sell-off. Despite the week’s earlier gains and positive fundamental news, the stock was not immune to sector-wide pressures and profit-booking. The correction brought the weekly gain to a modest 1.11%, but the stock still outperformed the Sensex’s 0.54% loss over the week.

Key Takeaways from the Week

Positive Signals: The upgrade of Transcorp International Ltd’s Mojo Grade from Sell to Hold on 6 February 2026 was a pivotal event, reflecting improved financial stability and more attractive valuation metrics. The company’s P/E ratio of 14.52 and price-to-book value of 1.31 stand out favourably against expensive NBFC peers, supporting a more balanced risk-reward profile. Technical indicators, including weekly MACD and Bollinger Bands, signalled bullish momentum through most of the week, contributing to short-term outperformance versus the Sensex.

Cautionary Notes: Despite stabilising quarterly results, the company’s nine-month PAT declined sharply by 47.23%, highlighting ongoing operational challenges. The stock’s sharp decline on Friday amid a broader market sell-off underscores vulnerability to sector-wide pressures and profit-taking. Long-term returns remain weak, with a one-year loss of 3.25% and a three-year decline of 16.82%, suggesting that fundamental improvements have yet to translate into sustained growth. Investors should remain mindful of these mixed signals when assessing the stock’s outlook.

Conclusion: A Week of Valuation-Driven Gains Amid Mixed Fundamentals

Transcorp International Ltd’s performance over the week ending 13 February 2026 was characterised by a modest 1.11% gain, outperforming the Sensex’s 0.54% decline. The key driver was the upgrade to a Hold rating by MarketsMOJO, supported by improved financial metrics and a shift to an attractive valuation grade. These factors helped the stock maintain resilience despite a late-week correction amid broader market weakness.

While the company’s short-term technical momentum and valuation appeal offer some optimism, the persistent challenges in profitability and long-term returns warrant a cautious stance. The stock’s relative affordability compared to expensive NBFC peers provides a more reasonable entry point, but investors should monitor operational performance closely to assess sustainability.

Overall, the week highlighted the importance of valuation discipline in a sector facing regulatory and macroeconomic headwinds, with Transcorp International Ltd emerging as a balanced proposition amid mixed signals.

Unlock special upgrade rates for a limited period. Start Saving Now →