Arihant Capital: Will Q1 Results Spark A Reversal After 28% Fall From Peak? SEBI RA Rohit Mehta Breaks It Down

Arihant Capital Market shares are 28% off their October 2024 all-time high, but technical charts suggest that a reversal could be on the cards. With the company set to declare its first quarter (Q1 FY26) earnings on Monday, it could be the catalyst for an uptrend, according to SEBI-registered analyst Rohit Mehta. 

On the technical side, ₹80.45–₹85.22 now acts as a support (it was a resistance zone earlier). The current price offers potential upside if momentum returns, because it is significantly below its all-time high of ₹124.65. 

Mehta flagged that a cup-and-handle formation is starting to form in Arihant Capital, suggesting a possible bullish breakout setup. Additionally, recent sessions have featured green candles with above-average volume, indicating a return of buying interest.

He observed that promoter holding remained stable at 69.81% from December 2024 to March 2025. However, foreign institutional investors (FIIs) have decreased their holdings from 0.51% to 0.09%. 

On the earnings front, its profit before tax (PBT) has reduced by 67.74% year-on-year (YoY), while EPS has reduced by 68.78% (YoY).

Fundamentally, on the positive side, the company has seen an improvement in its debtor days, from 250 to 143 days, which indicates better cash flow efficiency. But on the other hand, it faces contingent liabilities worth ₹295 crore. Additionally, its high borrowing costs may impact margins. 

Over the last three years, promoter holding has declined by 4.76%, which is a negative signal for investor confidence. 

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