Vivimed Labs Ltd Plunges to Lower Circuit Amid Heavy Selling Pressure

Stock Performance and Market Context

On 5 Feb 2026, Vivimed Labs Ltd (Stock ID: 612893) recorded a maximum daily loss of 4.89%, closing at ₹7.58, down ₹0.39 from the previous close. The stock’s price band was set at 5%, and it touched its lower circuit limit, indicating that the maximum permissible fall for the day was reached. The intraday high was ₹7.78, while the low matched the closing price at ₹7.58, reflecting persistent downward momentum throughout the session.

The total traded volume stood at 1.5877 lakh shares, with a turnover of ₹0.12 crore, signalling moderate liquidity for a micro-cap stock. Despite this, the delivery volume on 4 Feb was 2.72 lakh shares, which has sharply declined by 64.57% compared to the five-day average delivery volume, suggesting waning investor participation and increasing panic selling.

Vivimed Labs underperformed its sector, Pharmaceuticals & Drugs, which declined by 0.75%, and the Sensex, which fell by 0.47% on the same day. The stock’s four-day consecutive fall has resulted in an 18.32% loss over this period, highlighting a sustained negative trend.

Technical Indicators and Moving Averages

Technically, Vivimed Labs is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling a bearish trend across short, medium, and long-term timeframes. This persistent weakness in price action has likely contributed to the heightened selling pressure and the stock hitting its lower circuit.

The stock’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Strong Sell on 1 Feb 2026. This downgrade reflects deteriorating fundamentals and market sentiment. The Market Cap Grade is 4, consistent with its micro-cap status, with a market capitalisation of ₹66 crore, which often entails higher volatility and susceptibility to sharp price movements.

Investor Sentiment and Market Dynamics

The sharp decline and lower circuit hit are indicative of panic selling, where investors rush to exit positions amid negative sentiment and uncertainty. The unfilled supply of shares at lower price levels suggests that sellers overwhelmed buyers, pushing the stock price down to the maximum permissible limit for the day.

Such intense selling pressure often reflects concerns over the company’s near-term prospects or broader sectoral challenges. In Vivimed Labs’ case, the Pharmaceuticals & Drugs sector has been under pressure, but the stock’s underperformance relative to its peers points to company-specific issues or deteriorating fundamentals.

Moreover, the declining delivery volumes indicate that investors are increasingly reluctant to hold the stock, preferring to liquidate their holdings. This trend can exacerbate volatility and prolong the downtrend unless positive triggers emerge.

Valuation and Market Capitalisation Considerations

With a market capitalisation of ₹66 crore, Vivimed Labs is classified as a micro-cap stock. Such companies typically experience higher price volatility due to lower liquidity and limited analyst coverage. The stock’s current valuation metrics and quality grades, as reflected in its Mojo Score and Grade, suggest caution for investors.

Investors should be mindful of the risks associated with micro-cap stocks, including susceptibility to sharp price swings and limited institutional participation. The recent downgrade from Strong Sell to Sell further emphasises the need for careful analysis before considering exposure.

Outlook and Investor Guidance

Given the current technical weakness, negative momentum, and deteriorating investor sentiment, Vivimed Labs Ltd remains a high-risk proposition. The stock’s failure to hold above key moving averages and its lower circuit hit suggest that further downside cannot be ruled out in the near term.

Investors should closely monitor upcoming corporate announcements, sector developments, and broader market conditions before making investment decisions. Those holding the stock may consider risk mitigation strategies, while prospective investors should await signs of stabilisation and improved fundamentals.

In the context of the Pharmaceuticals & Drugs sector, selective stock picking with a focus on companies demonstrating robust earnings growth, strong balance sheets, and positive market sentiment is advisable.

Summary

Vivimed Labs Ltd’s plunge to its lower circuit on 5 Feb 2026 underscores the intense selling pressure and panic among investors. The stock’s four-day losing streak, underperformance relative to sector and benchmark indices, and downgrade in Mojo Grade to Sell highlight significant challenges ahead. With declining delivery volumes and unfilled supply at lower price levels, the stock remains vulnerable to further volatility.

Investors are urged to exercise caution and consider alternative opportunities with stronger fundamentals and more favourable technical setups.

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