Current Rating and Its Significance
MarketsMOJO’s 'Buy' rating for Rashi Peripherals Ltd indicates a positive outlook on the stock, suggesting that it is expected to outperform the market or its sector peers over the medium term. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The upgrade from 'Hold' to 'Buy' on 11 December 2025 was accompanied by an increase in the Mojo Score from 67 to 74, reflecting improved confidence in the company’s prospects.
Here’s How the Stock Looks Today
As of 05 January 2026, Rashi Peripherals Ltd demonstrates a robust profile across multiple dimensions. The company operates within the IT - Hardware sector and is classified as a smallcap stock. Its current market sentiment is buoyed by a strong technical grade and positive financial indicators, which underpin the 'Buy' recommendation.
Quality Assessment
The quality grade for Rashi Peripherals is assessed as average. This reflects a stable operational performance with consistent revenue growth and profitability metrics. The company has reported positive results for the last three consecutive quarters, signalling operational resilience. Notably, the Return on Capital Employed (ROCE) for the half-year period stands at a healthy 13.00%, indicating efficient utilisation of capital to generate profits.
Valuation Perspective
Valuation is a standout factor for Rashi Peripherals, with a very attractive grade assigned. The stock trades at a discount relative to its peers’ historical valuations, supported by an Enterprise Value to Capital Employed ratio of just 1.2. This suggests that the market currently values the company conservatively compared to the capital it employs. Additionally, the company’s Price/Earnings to Growth (PEG) ratio is a low 0.2, signalling that earnings growth is not fully priced in by the market, which may present an opportunity for investors seeking value.
Financial Trend and Performance
The financial trend for Rashi Peripherals is positive, reflecting strong growth momentum. As of 05 January 2026, the company’s net sales have grown at an annualised rate of 22.60%, underscoring healthy top-line expansion. Quarterly net sales reached a record high of ₹4,155.41 crores, while Profit Before Tax (PBT) excluding other income surged by 41.5% compared to the previous four-quarter average, reaching ₹74.18 crores. Despite a one-year stock return of -5.83%, profits have increased by 52% over the same period, highlighting improving operational efficiency and earnings quality.
Technical Outlook
Technically, the stock is rated as bullish. Recent price movements support this view, with the stock gaining 4.87% on the latest trading day and showing positive returns over multiple time frames: 8.00% over one week, 15.52% over one month, and 26.69% over six months. The bullish technical grade suggests favourable momentum and potential for further upside in the near term.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Investor Implications of the Buy Rating
For investors, the 'Buy' rating on Rashi Peripherals Ltd suggests that the stock is well-positioned to deliver favourable returns relative to its sector and the broader market. The combination of attractive valuation, positive financial trends, and bullish technical signals provides a compelling case for accumulation. However, the average quality grade indicates that investors should monitor operational metrics closely to ensure sustained performance.
Market Position and Shareholding
Rashi Peripherals is a smallcap company within the IT - Hardware sector, which is known for its cyclical nature and sensitivity to technological shifts. The majority shareholding is held by promoters, which often aligns management interests with those of shareholders. This ownership structure can provide stability and strategic direction, which is favourable for long-term investors.
Stock Performance Overview
As of 05 January 2026, the stock has delivered mixed returns over various periods. While the one-year return is negative at -5.83%, shorter-term performance has been encouraging, with gains of 26.69% over six months and nearly 19% over three months. This suggests a recent positive shift in market sentiment and potential recovery from earlier weakness.
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Summary
In summary, Rashi Peripherals Ltd’s current 'Buy' rating by MarketsMOJO reflects a well-rounded assessment of the company’s strengths and opportunities. The stock’s very attractive valuation, positive financial trends, and bullish technical outlook provide a solid foundation for potential capital appreciation. Investors should consider these factors alongside the company’s average quality grade and sector dynamics when making investment decisions.
Key Metrics at a Glance (As of 05 January 2026)
- Mojo Score: 74.0 (Buy Grade)
- Net Sales Growth (Annualised): 22.60%
- ROCE (Half Year): 13.00%
- PBT (Quarterly): ₹74.18 crores, up 41.5%
- Enterprise Value to Capital Employed: 1.2
- PEG Ratio: 0.2
- Stock Returns: 1D +4.87%, 1W +8.00%, 1M +15.52%, 3M +18.94%, 6M +26.69%, 1Y -5.83%
These figures highlight the company’s growth trajectory and valuation appeal, supporting the current positive recommendation.
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