Robust Short-Term Performance Outpaces Benchmarks
Manaksia Ltd’s stock has demonstrated a remarkable short-term rally, outperforming key market indices and its sector peers. Over the past week, the stock gained 9.78%, substantially higher than the Sensex’s modest 0.46% rise. This momentum extended into the month, with a 16.90% increase compared to the Sensex’s decline of 0.76%. Year-to-date, Manaksia has advanced 7.51%, while the benchmark index slipped 0.18%. Such relative strength highlights renewed investor interest and optimism in the stock’s near-term prospects.
On 06-Jan, the stock opened with a gap up of 9.81%, signalling strong buying interest from the outset. It reached an intraday high of ₹73.45, marking a 16.07% surge from the previous close, and traded within a wide range of ₹9.45, reflecting heightened volatility. Despite this volatility, Manaksia maintained a position above all major moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicating a robust technical setup that often attracts momentum traders and institutional investors.
Investor participation has notably increased, with delivery volumes on 05-Jan rising by 78.13% to 44,680 shares compared to the five-day average. This surge in delivery volume suggests genuine accumulation rather than speculative intraday trading, reinforcing the stock’s upward trajectory.
Our latest weekly pick is live! This Large Cap from Diamond & Gold Jewellery comes with clear entry and exit targets. See the detailed report with target price now!
- - Clear entry/exit targets
- - Target price revealed
- - Detailed report available
Fundamental Challenges Temper Long-Term Outlook
Despite the recent price surge, Manaksia’s fundamental performance remains mixed. The company’s return on equity (ROE) stands at a moderate 8.3%, and it maintains a low debt-to-equity ratio averaging zero, which is a positive sign of financial prudence. The stock trades at a price-to-book value of 0.7, suggesting a fair valuation, albeit at a premium relative to its peers’ historical averages.
However, the company’s profitability has been under pressure, with profits declining by 40.5% over the past year. This has contributed to a negative total return of 19.89% for shareholders during the same period. Furthermore, Manaksia’s net sales have contracted at an annualised rate of 0.43% over the last five years, while operating profit has shrunk by 3.79% annually, signalling subdued growth prospects.
Recent quarterly results released in September 2025 underline these concerns. Operating cash flow for the year was negative at ₹-7.80 crores, and profit after tax (PAT) for the quarter fell by 21.2% to ₹10.99 crores compared to the previous four-quarter average. Additionally, the company’s return on capital employed (ROCE) for the half-year was at a low 12.47%, reflecting inefficiencies in capital utilisation.
These fundamental weaknesses have contributed to the stock’s underperformance relative to broader market indices over longer time horizons. Over three years, Manaksia’s stock has declined by 7.79%, while the Sensex surged 42.01%. Similarly, over five years, the stock’s 20.38% gain pales in comparison to the Sensex’s 76.57% advance.
Manaksia or something better? Our SwitchER feature analyzes this Microcap Iron & Steel Products stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Balancing Technical Strength with Fundamental Concerns
The sharp rise in Manaksia’s share price on 06-Jan appears to be driven primarily by technical factors and increased investor participation rather than a turnaround in fundamentals. The stock’s ability to trade above all key moving averages and the surge in delivery volumes indicate strong market interest and potential short-term momentum play. This has enabled the stock to outperform its sector by 7.3% on the day and maintain liquidity sufficient for sizeable trades.
Nevertheless, investors should remain cautious given the company’s subdued long-term growth, declining profitability, and recent negative cash flow metrics. While the current rally may offer trading opportunities, the underlying business challenges suggest that sustained gains will require improvement in operational performance and earnings growth.
In summary, Manaksia Ltd’s price rise on 06-Jan reflects a confluence of technical strength, rising investor demand, and short-term optimism, set against a backdrop of fundamental headwinds that continue to weigh on its longer-term outlook.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
