Repro India Ltd. is Rated Strong Sell

Current Rating and Its Significance

MarketsMOJO’s Strong Sell rating for Repro India Ltd. indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market and peers. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment potential and risk profile.

Quality Assessment

As of 27 January 2026, Repro India Ltd.’s quality grade is categorised as below average. This reflects the company’s weak long-term fundamental strength, highlighted by an average Return on Capital Employed (ROCE) of just 1.64%. Such a low ROCE suggests that the company is generating limited returns on the capital invested in its operations, which is a concern for long-term value creation.

Moreover, operating profit growth over the last five years has been modest, with a compound annual growth rate of 15.81%. While this indicates some expansion, it is not sufficient to offset the company’s other weaknesses. The ability to service debt is also poor, with an average EBIT to interest coverage ratio of 0.33, signalling potential challenges in meeting interest obligations comfortably.

Valuation Perspective

The valuation grade for Repro India Ltd. is currently fair. This suggests that while the stock is not excessively overvalued, it does not present a compelling bargain either. Investors should note that fair valuation in the context of weak fundamentals and negative financial trends may not justify a positive outlook. The stock’s microcap status further adds to the risk profile, as smaller companies often face greater volatility and liquidity constraints.

Financial Trend and Recent Performance

The financial grade assigned to the company is negative, reflecting deteriorating financial health and operational challenges. The latest quarterly data shows net sales at ₹107.78 crores, which have declined by 8.3% compared to the previous four-quarter average. Additionally, the company has reported negative results for three consecutive quarters, underscoring ongoing profitability issues.

Debt metrics have also worsened, with the debt-to-equity ratio rising to 0.35 times as of the half-year period, indicating increased leverage. The ROCE for the half-year is at a low 1.37%, further emphasising the company’s struggle to generate adequate returns on capital.

Technical Outlook

Technically, the stock is graded as bearish. This is supported by the stock’s recent price performance, which has been notably weak. As of 27 January 2026, Repro India Ltd. has delivered a 1-day decline of 2.28%, a 1-week drop of 7.45%, and a 1-month fall of 20.48%. Over the past three months, the stock has lost 30.02%, and over six months, it has declined by 31.10%. Year-to-date returns stand at -19.47%, while the one-year return is -23.32%.

These figures indicate sustained selling pressure and a lack of positive momentum, which technical analysts interpret as a bearish signal. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, reinforcing the negative technical sentiment.

Investor Sentiment and Market Position

Another noteworthy aspect is the absence of domestic mutual fund holdings in Repro India Ltd. Despite the company’s size, domestic institutional investors hold 0% of the stock. This lack of institutional interest may reflect concerns about the company’s business prospects or valuation at current levels. Institutional investors typically conduct thorough research and their absence can be a red flag for retail investors.

Overall, the combination of weak quality metrics, fair valuation, negative financial trends, and bearish technicals justifies the Strong Sell rating. Investors should approach this stock with caution, considering the risks highlighted by these parameters.

What This Rating Means for Investors

For investors, the Strong Sell rating signals that Repro India Ltd. is currently not a favourable investment option. The rating suggests that the stock is expected to underperform the market and may carry elevated risks due to its weak fundamentals and negative financial trajectory. Investors should carefully consider these factors before initiating or maintaining positions in the stock.

It is important to note that the rating and analysis are based on the most recent data as of 27 January 2026, ensuring that investment decisions are informed by the latest available information rather than historical snapshots. This approach helps investors understand the current risk-reward profile of the stock in a dynamic market environment.

Given the company’s ongoing challenges, including declining sales, poor profitability, and lack of institutional support, investors may prefer to explore alternative opportunities with stronger fundamentals and more positive outlooks.

In summary, Repro India Ltd.’s Strong Sell rating reflects a comprehensive assessment of its quality, valuation, financial trend, and technical outlook, all of which currently point to a cautious stance for investors.

Summary of Key Metrics as of 27 January 2026

• Mojo Score: 12.0 (Strong Sell)
• Market Capitalisation: Microcap
• Return on Capital Employed (ROCE): 1.64% average; 1.37% half-year
• Operating Profit Growth (5 years CAGR): 15.81%
• EBIT to Interest Coverage Ratio: 0.33 (average)
• Debt-to-Equity Ratio: 0.35 times (half-year)
• Net Sales (Latest Quarter): ₹107.78 crores, down 8.3%
• Stock Returns: 1Y -23.32%, 6M -31.10%, 3M -30.02%, 1M -20.48%, 1W -7.45%, 1D -2.28%
• Institutional Holding (Domestic Mutual Funds): 0%

Investors should weigh these metrics carefully in the context of their portfolio objectives and risk tolerance.

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