The stock of Vama Industries recorded a day change of 0.38%, slightly outperforming its sector by 0.65% during the trading session. Despite this minor uptick, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward pressure over multiple time frames.
Over the last year, Vama Industries has generated a return of -32.43%, a stark contrast to the Sensex’s 9.53% gain in the same period. The Sensex itself is trading near its 52-week high of 85,290.06, currently at 84,965.43, supported by mega-cap stocks and bullish moving averages. This divergence highlights the relative underperformance of Vama Industries within the broader market context.
Financially, the company’s long-term fundamentals indicate challenges. The average EBIT to interest ratio stands at -0.61, reflecting difficulties in servicing debt obligations. Additionally, the average return on equity is 0.71%, pointing to limited profitability generated from shareholders’ funds. These metrics contribute to the company’s current evaluation status, which has seen a revision in its score to a Mojo Grade of Strong Sell as of 30 May 2025.
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Examining recent quarterly results, Vama Industries reported a PAT of Rs. -0.17 crore for the quarter ended September 2025, representing a decline of 312.5% compared to the previous period. Cash and cash equivalents at the half-year mark were recorded at Rs. 0.23 crore, indicating limited liquidity reserves. Despite a 79.6% rise in profits over the past year, the company continues to report negative operating profits, which adds to the risk profile of the stock.
Promoter shareholding also presents a concern, with approximately 30% of promoter shares pledged. In volatile or declining markets, such a high level of pledged shares can exert additional downward pressure on the stock price, as forced selling may occur to meet margin requirements.
Vama Industries’ stock has underperformed not only in the last year but also over longer periods, including the last three years and the past three months, relative to the BSE500 index. This sustained underperformance reflects both near-term and long-term challenges faced by the company within the IT - Hardware sector.
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In summary, Vama Industries’ stock price reaching Rs.5.02 marks a significant low point within its 52-week trading range, down from a high of Rs.11.42. The company’s financial indicators, including weak debt servicing capacity and low return on equity, alongside negative operating profits and high promoter pledge levels, contribute to the subdued market valuation. While the broader market, led by mega-cap stocks, continues to show strength, Vama Industries remains under pressure with its share price trading below all major moving averages.
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