Recent Price Movement and Market Context
On the day the new low was recorded, Websol Energy’s share price fell by 3.8% intraday, closing with a day change of -3.68%. This decline extended a losing streak spanning four consecutive sessions, during which the stock has dropped approximately 7.2%. The stock’s performance notably lagged behind its sector, underperforming by 2.41% on the same day.
Trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — the stock’s technical indicators signal sustained downward momentum. This contrasts with the broader market, where the Sensex, despite a negative opening and a fall of 513.53 points (-0.91%) to 82,539.01, remains within 4.39% of its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day average, indicating a more stable medium-term trend compared to Websol Energy’s share price trajectory.
Valuation and Financial Metrics
Websol Energy System Ltd currently holds a Mojo Score of 43.0 with a Mojo Grade of Sell, downgraded from Hold on 3 Nov 2025. The company’s market capitalisation grade stands at 3, reflecting its mid-cap status within the Other Electrical Equipment sector. Despite a return on capital employed (ROCE) of 55.5%, the stock is considered expensive relative to its enterprise value to capital employed ratio of 5.6. This valuation metric suggests that the market is pricing the company at a premium compared to the capital it employs, which may be contributing to the recent price pressure.
Over the past year, Websol Energy’s stock has delivered a negative return of -41.58%, significantly underperforming the Sensex’s positive 10.83% return and the BSE500’s 13.53% gain. This divergence highlights the stock’s relative weakness amid a generally positive market environment.
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Promoter Shareholding and Market Impact
A notable factor influencing the stock’s recent performance is the high level of promoter share pledging, with 88.12% of promoter shares currently pledged. This elevated pledge ratio can exert additional downward pressure on the stock price, particularly in falling markets, as it raises concerns about potential forced selling or liquidity constraints.
The stock’s discounted trading relative to its peers’ historical valuations further reflects market caution. Despite the company’s strong profitability metrics, including a profit growth of 336.7% over the past year and a PEG ratio of 0, the market appears to be pricing in risks associated with valuation and shareholding structure.
Financial Performance Highlights
Websol Energy System Ltd has demonstrated robust long-term growth, with net sales increasing at an annual rate of 45.26% and operating profit surging by 141.82%. The company reported very positive quarterly results in December 2025, with net sales reaching a record Rs.261.02 crores and PBDIT hitting Rs.106.45 crores, the highest levels recorded to date.
Additionally, the operating profit to interest ratio for the quarter stood at a strong 29.01 times, indicating healthy coverage of interest expenses by operating earnings. The company has maintained a positive earnings trajectory for seven consecutive quarters, underscoring consistent operational performance despite the stock’s price challenges.
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Sector and Industry Positioning
Operating within the Other Electrical Equipment sector, Websol Energy System Ltd faces competitive pressures and sector-specific dynamics that influence its market valuation and stock performance. While the company’s financial results indicate strong growth and profitability, the stock’s price action suggests that market participants remain cautious, possibly due to valuation concerns and the high promoter pledge ratio.
The stock’s 52-week high of Rs.159.90 contrasts sharply with the current 52-week low of Rs.61.51, illustrating significant volatility and a steep decline over the past year. This wide price range reflects the challenges the company has faced in maintaining investor confidence despite its operational achievements.
Summary of Key Metrics
To summarise, Websol Energy System Ltd’s key financial and market metrics as of 24 Feb 2026 include:
- New 52-week low price: Rs.61.51
- One-year stock return: -41.58%
- Sensex one-year return: +10.83%
- Promoter share pledge: 88.12%
- ROCE: 55.5%
- Enterprise value to capital employed: 5.6
- Net sales growth (annual): 45.26%
- Operating profit growth (annual): 141.82%
- PEG ratio: 0
- Consecutive positive quarters: 7
These figures highlight a company with strong underlying financial performance but facing market valuation pressures and shareholding structure concerns that have contributed to its recent share price decline.
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