Recent Price Movement and Market Comparison
On 02-Dec, Odigma Consultancy Solutions’ stock price decreased by ₹0.72, marking a 2.11% fall. This decline is part of a two-day losing streak, during which the stock has shed 5.54% of its value. When compared to the broader market, the stock has significantly underperformed. Over the past week, Odigma’s shares fell by 0.65%, while the Sensex gained 0.65%. The divergence is even starker over the last month, with the stock plunging 15.04% against a 1.43% rise in the Sensex. Year-to-date, the stock has lost more than half its value, down 51.32%, while the Sensex has advanced by 8.96%.
Further compounding concerns, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical weakness signals sustained bearish sentiment among investors. Despite this, there has been a rise in investor participation, with delivery volume on 01-Dec increasing by 34.48% compared to the five-day average, indicating some level of trading interest amid the decline.
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Financial Performance and Profitability Challenges
Despite some positive long-term indicators, such as an impressive annual operating profit growth rate of 72.00%, Odigma Consultancy Solutions faces significant profitability challenges. The company’s return on equity (ROE) stands at a low 0.77%, reflecting poor management efficiency and limited ability to generate profits from shareholders’ funds. This low ROE is a critical factor weighing on investor confidence.
The company’s recent quarterly results for September 2025 further underline these concerns. Operating profit to net sales ratio was negative at -0.48%, indicating that the company is not generating operating profits relative to its sales. Additionally, the Profit Before Depreciation, Interest, and Taxes (PBDIT) was marginally negative at ₹-0.06 crore, while Profit Before Tax excluding other income (PBT less OI) was also negative at ₹-0.18 crore. These flat or negative results highlight operational difficulties and contribute to the stock’s bearish trend.
Moreover, the stock is considered risky due to its negative operating profits and valuation concerns. Although profits have risen by 34% over the past year, the stock’s price has remained stagnant, generating a 0.00% return in the same period. This disconnect between profit growth and share price performance suggests that investors remain cautious about the company’s future prospects.
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Balance Sheet and Shareholding Structure
On a positive note, Odigma Consultancy Solutions maintains a low debt-to-equity ratio, effectively zero, which reduces financial risk and interest burden. The majority of the company’s shares are held by non-institutional investors, which can sometimes lead to higher volatility due to retail investor behaviour. However, the low leverage does provide a cushion against financial distress in the near term.
Conclusion: Why the Stock is Falling
The decline in Odigma Consultancy Solutions’ share price as of 02-Dec is primarily attributable to weak financial performance, poor profitability metrics, and sustained underperformance relative to the broader market. The company’s inability to generate positive operating profits and its low return on equity have eroded investor confidence. Despite healthy long-term operating profit growth and a strong balance sheet, the flat quarterly results and negative operating margins have overshadowed these positives.
Technical indicators reinforce the bearish outlook, with the stock trading below all major moving averages and experiencing consecutive days of price decline. While rising delivery volumes suggest some trading interest, the overall sentiment remains cautious. Investors are likely weighing the risks associated with the company’s operational challenges against its growth potential, resulting in the current downward pressure on the stock price.
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