Key Events This Week
2 Feb: Stock opens at Rs.7.72 amid market weakness
3 Feb: Ultracab hits 52-week low of Rs.7.5; reports profitability pressures
5 Feb: Downgraded to Strong Sell as quality parameters deteriorate
6 Feb: Week closes at Rs.7.56, down 3.45% for the week
2 February 2026: Week Begins with Market Downturn
Ultracab opened the week at Rs.7.72, down 1.40% from the previous Friday’s close of Rs.7.83. The broader market was also weak, with the Sensex falling 1.03% to 35,814.09. Trading volume was moderate at 86,147 shares, reflecting cautious investor sentiment amid early-week volatility. The stock’s decline aligned with sectoral pressures and a cautious outlook on micro-cap cable makers.
3 February 2026: Stock Hits 52-Week Low Amid Profitability Concerns
On 3 February, Ultracab’s shares plunged to a new 52-week low of Rs.7.5, closing at this level after a 3.63% drop. This marked a significant underperformance against the Sensex, which surged 2.63% to 36,755.96, and the Cables - Electricals sector which gained 4.83%. The stock’s fall was driven by disappointing quarterly results revealing a 43.96% decline in Profit Before Tax to Rs.1.81 crore and a 30.72% drop in Profit After Tax over six months to Rs.3.22 crore. Return on Capital Employed (ROCE) also fell to 13.10%, signalling deteriorating operational efficiency. Despite strong market and sectoral gains, Ultracab’s fundamentals weighed heavily on investor confidence.
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4 February 2026: Continued Weakness Despite Market Stability
The stock price slipped further to Rs.7.74, down 1.90% on the day, even as the Sensex edged up 0.37% to 36,890.21. Trading volume increased to 195,538 shares, indicating active selling pressure. Ultracab’s share price remained below key moving averages, reinforcing the negative technical outlook. The company’s financial results and valuation concerns continued to weigh on sentiment, with no signs of immediate recovery.
5 February 2026: Downgrade to Strong Sell Reflects Deteriorating Fundamentals
MarketsMOJO downgraded Ultracab from Sell to Strong Sell on 4 February, citing a decline in quality parameters from average to below average. The Mojo Score dropped to 17.0, signalling heightened risk. The downgrade was driven by weakening return ratios, including an average ROE of 14.20% and ROCE of 14.50%, alongside high leverage with a debt to EBITDA ratio of 3.44 and modest EBIT to interest coverage of 2.95 times. The stock closed at Rs.7.67, down 0.90%, reflecting investor concerns over the company’s operational efficiency and financial health. The downgrade also highlighted Ultracab’s zero dividend payout and lack of institutional shareholding, factors that may limit liquidity and support.
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6 February 2026: Week Ends with Further Decline
The stock closed the week at Rs.7.56, down 1.43% on the day and 3.45% for the week, while the Sensex gained 0.10% to 36,730.20. Volume was 108,267 shares, reflecting continued subdued investor interest. Ultracab’s share price remains near its 52-week low, underscoring persistent challenges. The company’s valuation, while attractive on an enterprise value to capital employed ratio of approximately 1.0, is overshadowed by weak financial trends and deteriorating fundamentals. The stock’s sustained underperformance relative to the Sensex and sector peers highlights ongoing structural issues.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.7.72 | -1.40% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.7.89 | +2.20% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.7.74 | -1.90% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.7.67 | -0.90% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.7.56 | -1.43% | 36,730.20 | +0.10% |
Key Takeaways
Negative Price Momentum: Ultracab’s stock declined 3.45% over the week, sharply underperforming the Sensex’s 1.51% gain. The stock hit a 52-week low of Rs.7.5 on 3 February, reflecting sustained selling pressure.
Deteriorating Fundamentals: The company’s profitability metrics weakened significantly, with quarterly PBT down 43.96% and PAT down 30.72%. Return ratios such as ROCE and ROE have declined, signalling reduced operational efficiency.
High Leverage and Risk: Elevated debt levels with a debt to EBITDA ratio of 3.44 and modest interest coverage of 2.95 times raise concerns about financial flexibility and risk management.
Quality Downgrade and Market Sentiment: The downgrade to a Strong Sell rating by MarketsMOJO, accompanied by a drop in quality grade to below average, highlights investor caution amid weak financial trends and technical weakness.
Valuation Context: Despite attractive valuation metrics such as an enterprise value to capital employed ratio near 1.0, the stock’s low price reflects market concerns rather than undervaluation based on strong fundamentals.
Conclusion
Ultracab (India) Ltd’s performance over the week ending 6 February 2026 underscores significant challenges. The stock’s decline to a 52-week low amid deteriorating profitability and a downgrade to Strong Sell reflects deepening concerns about the company’s financial health and operational efficiency. While the broader market and sector showed resilience, Ultracab’s fundamentals and leverage profile have weighed heavily on investor sentiment. The company’s valuation remains inexpensive but is overshadowed by persistent underperformance and risk factors. Investors should remain cautious given the structural headwinds and monitor future financial disclosures closely for any signs of recovery.
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