Stock Price Movement and Market Context
On the day the new low was recorded, the stock outperformed its sector by 4.13%, showing a modest recovery after two consecutive days of decline. Despite this short-term gain, the share price remains below its 20-day, 50-day, 100-day, and 200-day moving averages, though it is trading above the 5-day moving average. This positioning indicates a fragile upward momentum amid a longer-term downtrend.
The broader market environment was challenging, with the Sensex opening lower at 81,947.31, down 619.06 points (-0.75%), and trading at 82,034.95 (-0.64%) during the same session. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting mixed signals for market direction.
Long-Term Performance and Valuation
Over the past year, Udayshivakumar Infra Ltd’s stock has delivered a negative return of -57.11%, starkly contrasting with the Sensex’s positive 6.98% gain over the same period. The stock’s 52-week high was Rs.53.89, highlighting the extent of the decline from its peak.
The company’s market capitalisation grade stands at 4, reflecting its relatively modest size and valuation metrics within the construction sector. The Mojo Score assigned to the stock is 9.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 2 June 2025, signalling heightened caution based on fundamental and technical assessments.
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Financial Metrics and Profitability Trends
The company’s long-term financial trajectory has been notably weak. Operating profits have declined at a compounded annual growth rate (CAGR) of -167.22% over the last five years, underscoring persistent profitability pressures. The average Return on Equity (ROE) stands at 6.85%, indicating limited returns generated on shareholders’ funds.
Recent quarterly results have been negative for six consecutive quarters, reflecting ongoing difficulties in reversing the downward trend. Net sales for the latest quarter were Rs.57.71 crores, down by 20.9% compared to the average of the previous four quarters. Meanwhile, interest expenses for the nine-month period rose sharply by 48.71% to Rs.6.90 crores, adding to the financial strain.
Profit after tax (PAT) for the nine-month period was a loss of Rs.13.16 crores, deteriorating by 21.60% relative to prior periods. The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) remain negative, further highlighting the challenging earnings environment.
Risk and Valuation Considerations
The stock is currently trading at valuations considered risky relative to its historical averages. Over the past year, profits have fallen by 166.8%, a steep decline that has weighed heavily on investor sentiment. The stock’s underperformance extends beyond the last year, with returns lagging behind the BSE500 index over the last three years, one year, and three months.
Majority ownership remains with the promoters, which may influence strategic decisions and capital allocation going forward.
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Summary of Current Position
Udayshivakumar Infra Ltd’s stock has reached a critical low point, reflecting a combination of subdued sales, rising interest costs, and sustained losses. The share price’s fall to Rs.19.5 marks a significant milestone in its downward trajectory, with the stock underperforming both its sector and broader market indices over multiple time frames.
While the stock showed a slight gain after two days of decline, it remains below key moving averages, signalling that the broader trend remains negative. The company’s financial indicators, including a negative EBITDA and declining PAT, continue to weigh on its valuation and market perception.
Investors and market participants will be monitoring the company’s forthcoming financial disclosures and market developments closely, given the stock’s current standing and the challenges highlighted by recent performance metrics.
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