Recent Price Movement and Market Context
The stock has been on a losing streak for three consecutive trading sessions, shedding approximately 3.96% during this period. Despite outperforming its sector on the day by 5.13%, Ultracab’s share price remains well below key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish sentiment among market participants.
In comparison, the broader Cable - Electricals sector has experienced a sharper decline, falling by 6.14%, while the Sensex index itself closed down 1.28% at 82,180.47, retreating by 1,026.91 points. The Sensex is currently trading below its 50-day moving average but remains 4.84% shy of its 52-week high of 86,159.02. Notably, the Sensex has recorded a three-week consecutive decline, losing 4.18% in that span.
Financial Performance and Valuation Metrics
Ultracab’s financial results have contributed to the subdued market sentiment. The company reported a Profit Before Tax (PBT) of Rs.1.81 crore in the latest quarter, representing a decline of 43.96% compared to the previous period. Similarly, the Profit After Tax (PAT) for the latest six months stood at Rs.3.22 crore, down by 30.72%. Return on Capital Employed (ROCE) for the half-year was recorded at 13.10%, one of the lowest levels observed in recent years.
Despite these declines, the company has demonstrated a healthy long-term sales growth rate, with net sales increasing at an annualised rate of 31.13%. This growth, however, has not translated into proportional profit expansion, as profits have only risen marginally by 2.6% over the past year.
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Comparative Performance and Market Position
Over the last twelve months, Ultracab’s stock has declined by 48.73%, a stark contrast to the Sensex’s positive return of 6.63% during the same period. This underperformance extends beyond the immediate past year, with the stock consistently lagging behind the BSE500 index across the last three annual periods. The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Hold on 6 August 2025.
Valuation metrics indicate that Ultracab is trading at a discount relative to its peers’ historical averages. The company’s Enterprise Value to Capital Employed ratio is 1.1, which, combined with a ROCE of 13.2%, suggests an attractive valuation from a purely numerical standpoint. However, these metrics have not been sufficient to offset the negative market sentiment driven by recent earnings declines and price weakness.
Shareholding and Sector Dynamics
The majority of Ultracab’s shares are held by non-institutional investors, which may influence liquidity and trading patterns. Within the Cables - Electricals sector, the stock’s performance has been notably weaker than the sector average, which itself has faced headwinds in recent months. The sector’s decline of 6.14% contrasts with Ultracab’s sharper relative losses, highlighting company-specific factors at play.
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Technical Indicators and Trading Patterns
From a technical perspective, Ultracab’s share price remains below all major moving averages, signalling a sustained bearish trend. The stock’s 52-week high was Rs.17.52, indicating a decline of over 53% from that peak to the current 52-week low of Rs.8.2. This wide price range reflects significant volatility and investor caution.
The recent three-day consecutive fall and the stock’s inability to breach short-term moving averages suggest that the current price level is a critical support zone. The day’s decline of 0.60% occurred despite the stock outperforming its sector, which may indicate relative resilience amid broader sector weakness.
Summary of Key Metrics
To summarise, Ultracab (India) Ltd’s stock has reached a new 52-week low of Rs.8.2, reflecting ongoing challenges in earnings growth and market sentiment. The company’s financial indicators show a decline in profitability, with PBT and PAT falling significantly in recent periods. Despite robust sales growth and attractive valuation ratios, the stock’s performance has lagged behind both sector and benchmark indices over the past year and beyond.
Market conditions, including a weakening Sensex and sectoral pressures, have compounded the stock’s downward momentum. The majority non-institutional shareholding and technical indicators further contextualise the current trading environment for Ultracab.
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