Freefall! eMudhra shares crash 34% in just 3 sessions, near 52-week low - Why is stock plunging? What market experts say

eMudhra shares have been in free fall over the last three sessions. The stock crashed 15% in intraday trade on the BSE on Thursday, 22 October, looking set to extend losses for the third consecutive session. The stock hit an intraday low of ₹367 in Thursday's session, inching closer to its 52-week low of ₹365.75, hit on 30 March. At the current market price, the stock has lost 34% in just three consecutive sessions.

Why is eMudhra share price falling? The stock has been witnessing a massive selloff after eight intermediate certification authority (CA) certificates associated with eMudhra were compromised. The Indian Computer Emergency Response Team (CERT-In) said eMudhra Limited, an India-based certification authority, reported that private keys associated with eight intermediate CA certificates in its public key infrastructure (PKI) had been compromised.In an exchange filing on 21 October, eMudhra said a flaw in the KGC caused a wrap/unwrap step to produce a second set of weak keys alongside the original strong keys.

The weak keys were the ones published to the browser root stores. eMudhra is working to establish the root cause.The company said these roots and issuing CAs have gone through independent audits for two years in a row, and have been in browser trust lists since mid 2025.eMudhra confirmed that its infrastructure was not compromised, there was no data breach, and all physical and logical security controls remained intact."This incident has no connection with eMudhra’s Indian Digital Signature Certificate (DSC) and eSign businesses.

The global TLS business runs on infrastructure that is completely separate from the India DSC business. DSC and eSign services in India are running normally," said the company."The affected global TLS business is a very small part of eMudhra’s operations and accounts for around 1% of the company’s revenue. However, this may have some reputational risks for eMudhra which cannot be quantified," the company said."eMudhra is working directly with customers who may be affected to give them replacement certificates, so that critical services are not disrupted.

The company is also working with the root programs and continues its root-cause investigation," it added.What market experts sayAditya Thukral, founder and analyst at AT Research and Risk Managers, said the stock has been in a downtrend with the formation of lower highs and lower lows. The selling has intensified in the stock over the last two trading sessions, and it’s not expected to pause soon.Thukral underscored that the stock price is now sustaining below all the major EMA’s.

At the same time, a fresh resistance zone has been created between ₹430 and ₹470."The downtrend continuation is expected to happen in the stock, and it has the possibility to test lower levels of ₹300 in the coming months. We expect the continuation to happen in the stock," said Thukral.Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, underscored that eMudhra share price is displaying weakness on the technical charts after breaching its crucial support level of ₹430.The breakdown indicates a deterioration in the stock’s price structure and raises the possibility of further downside in the near term.According to Patel, the next important support is placed around ₹364, which will be critical for the stock to stabilise and prevent further deterioration in its technical outlook.

Sustaining above ₹364 is essential to avoid additional selling pressure."Although the stock may witness a brief technical bounce following the recent decline, such a recovery should be viewed as an opportunity to reduce or exit existing positions rather than initiate fresh buying," said Patel."The overall chart structure remains weak, and the stock has yet to show convincing signs of a reversal. Hence, investors and traders should avoid fresh long positions until the price action improves and the stock establishes a stronger technical base," Patel said.According to Vipin Kumar, AVP-Research at Globe Capital Market, the stock is trading on the verge of a fresh breakdown below key spot support at ₹362."A decisive close below this level could trigger a further decline toward ₹320, and potentially ₹300, over the short to medium term.

Conversely, any bounce toward the ₹405– ₹430 zone is likely to face resistance and attract selling interest at higher levels," said Kumar.Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.