Ujaas Energy Ltd Hits Lower Circuit Amid Heavy Selling Pressure

Intraday Price Action and Circuit Breaker Trigger

Ujaas Energy Ltd’s stock opened sharply lower at ₹162.4, reflecting a 5.0% gap down from the previous close. The price remained locked at this level throughout the trading session, hitting the maximum permissible daily loss limit of ₹8.54 per share, or 5.0%. This triggered the lower circuit breaker, halting further declines and preventing additional trades below this threshold.

The stock’s high and low for the day were identical at ₹162.4, indicating no intra-day price movement beyond the circuit limit. Total traded volume was extremely thin at just 0.0157 lakh shares, with turnover amounting to a mere ₹0.0255 crore, underscoring the lack of buyer interest amid heavy selling pressure.

Persistent Downtrend and Sector Underperformance

Ujaas Energy has been on a downward trajectory for five consecutive trading sessions, cumulatively losing 22.61% in value. This sustained decline has significantly underperformed the power sector, which recorded a modest 0.27% loss on the same day, and the broader Sensex, which marginally gained 0.03%. The stock’s underperformance relative to its sector peers highlights growing investor scepticism about its near-term prospects.

Despite the recent price weakness, the stock’s last traded price remains above its 20-day, 50-day, 100-day, and 200-day moving averages, suggesting that longer-term technical support levels have not yet been breached. However, it trades below its 5-day moving average, signalling short-term bearish momentum.

Declining Investor Participation and Liquidity Concerns

Investor participation has notably diminished, with delivery volume on 17 Feb falling by 89.56% compared to the five-day average. This sharp drop in delivery volume indicates that fewer investors are willing to hold the stock amid the ongoing sell-off, exacerbating downward pressure on prices.

Liquidity remains adequate for small trades, with the stock’s turnover representing approximately 2% of its five-day average traded value, allowing for modest-sized transactions of around ₹0.01 crore. However, the extremely low volume on the day of the circuit hit suggests that supply is outstripping demand, with sellers unable to find buyers willing to absorb the stock at current levels.

Mojo Score and Analyst Ratings

According to MarketsMOJO’s latest assessment dated 3 Feb 2026, Ujaas Energy Ltd holds a Mojo Score of 31.0, categorising it firmly in the ‘Sell’ grade. This represents a downgrade from its previous ‘Strong Sell’ rating, signalling a slight improvement in outlook but still reflecting significant caution. The company’s market capitalisation stands at ₹2,332 crore, placing it in the small-cap segment with a market cap grade of 3, indicating moderate size but limited institutional interest.

The downgrade in rating reflects concerns over the company’s operational challenges and sector headwinds, which have weighed on investor sentiment. The power sector, while generally stable, has seen pockets of volatility due to regulatory uncertainties and fluctuating demand patterns, factors that have impacted Ujaas Energy’s performance.

Market Context and Sector Dynamics

The power sector in India has been navigating a complex environment characterised by evolving government policies, tariff revisions, and increasing competition from renewable energy sources. Ujaas Energy, primarily engaged in power generation and related activities, faces pressure from these structural changes, which have contributed to its recent share price volatility.

While the broader sector has shown resilience, Ujaas Energy’s stock has lagged, reflecting company-specific issues such as subdued earnings growth and investor concerns over future cash flows. The stock’s inability to attract buyers at lower price levels, as evidenced by the circuit hit and low volumes, suggests that market participants remain wary of its near-term outlook.

Technical and Trading Insights

The stock’s locking at the lower circuit price band of ₹162.4, with no trades below this level, indicates a strong imbalance between supply and demand. Sellers have aggressively offloaded shares, but buyers have been reluctant to step in, resulting in unfilled supply and a freeze in price movement.

Such circuit hits often trigger panic selling, as investors rush to exit positions amid uncertainty. However, they can also mark potential short-term bottoms if buying interest returns. For Ujaas Energy, the key will be monitoring volume patterns and price action in the coming sessions to gauge whether the selling pressure abates or intensifies.

Investor Takeaways and Outlook

Investors should approach Ujaas Energy Ltd with caution given the recent price action and persistent selling pressure. The stock’s five-day consecutive decline and circuit lock highlight significant near-term risks, including weak demand and potential operational headwinds.

While the downgrade from ‘Strong Sell’ to ‘Sell’ by MarketsMOJO suggests a marginally less negative outlook, the company’s fundamentals and sector challenges remain a concern. Investors may consider monitoring the stock for signs of stabilisation, such as increased volume on up days or a break above the 5-day moving average, before committing fresh capital.

For those seeking exposure to the power sector, evaluating alternative stocks with stronger momentum and more favourable ratings could be prudent. Utilising portfolio optimisation tools and cross-sector comparisons can help identify better opportunities aligned with risk tolerance and investment objectives.

Conclusion

Ujaas Energy Ltd’s plunge to the lower circuit limit on 18 Feb 2026 underscores the intense selling pressure and investor apprehension surrounding the stock. The combination of a sharp 5.0% daily loss, unfilled supply, and declining participation paints a challenging picture for the company’s shares in the short term. While longer-term technical supports remain intact, the immediate outlook calls for vigilance and careful analysis before making investment decisions.

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