Current Rating Overview
MarketsMOJO’s Strong Sell rating for Repro India Ltd. indicates a cautious stance towards the stock, suggesting that investors should consider avoiding or exiting positions. This rating was assigned on 05 January 2026, following a significant decline in the company’s Mojo Score from 33 to 12, reflecting deteriorating fundamentals and market sentiment. The Strong Sell grade is the lowest in the rating scale, signalling considerable risks and challenges facing the company.
How the Stock Looks Today: Key Fundamentals and Metrics
As of 07 February 2026, Repro India Ltd. remains a microcap company within the miscellaneous sector, with a Mojo Score of 12.0 and a corresponding Strong Sell grade. The stock has experienced notable volatility and underperformance in recent periods, with a one-day decline of 3.19%, a one-month drop of 9.57%, and a one-year return of -18.52%. Year-to-date, the stock has fallen by 11.19%, underscoring ongoing challenges.
Quality Assessment
The company’s quality grade is below average, reflecting weak operational and financial health. The average Return on Capital Employed (ROCE) stands at a modest 1.64%, indicating limited efficiency in generating profits from capital invested. Operating profit growth over the past five years has been 15.81% annually, which, while positive, is insufficient to offset other weaknesses. Additionally, the company’s ability to service debt is poor, with an average EBIT to interest coverage ratio of just 0.33, signalling potential liquidity constraints and financial stress.
Valuation Perspective
Repro India Ltd.’s valuation grade is fair, suggesting that the stock is not excessively overvalued relative to its fundamentals. However, this neutral valuation does not compensate for the company’s operational and financial shortcomings. Investors should note that fair valuation alone does not imply investment safety, especially when other critical parameters are weak.
Financial Trend Analysis
The financial grade is negative, reflecting deteriorating recent performance. The company has reported negative results for three consecutive quarters, with the half-year ROCE dropping to 1.37%, the lowest in recent periods. The debt-to-equity ratio has increased to 0.35 times, the highest recorded, indicating a rising leverage burden. Quarterly net sales have declined by 8.3% to ₹107.78 crores compared to the previous four-quarter average, signalling weakening demand or operational challenges.
Technical Outlook
The technical grade is bearish, consistent with the stock’s downward price momentum and underperformance relative to broader indices. Over the last three months, the stock has declined by 27.83%, and over six months by 18.81%, both significantly lagging the BSE500 benchmark. This trend suggests limited near-term upside and heightened risk of further declines.
Investor Implications of the Strong Sell Rating
A Strong Sell rating from MarketsMOJO advises investors to exercise caution and consider reducing exposure to Repro India Ltd. The combination of weak quality, negative financial trends, bearish technicals, and only fair valuation points to a challenging environment for the company. Investors should be aware that the stock’s recent performance and fundamentals do not support a positive outlook at this time.
Additional Market Insights
Notably, domestic mutual funds hold no stake in Repro India Ltd., which may reflect a lack of confidence from institutional investors who typically conduct thorough research. This absence of institutional backing further emphasises the risks associated with the stock.
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Summary and Outlook
In summary, Repro India Ltd.’s Strong Sell rating reflects a comprehensive assessment of its current financial health, valuation, and market performance as of 07 February 2026. The company faces significant headwinds, including weak profitability, rising leverage, declining sales, and negative technical signals. While the valuation remains fair, it does not offset the broader risks identified.
For investors, this rating suggests prudence and a need to closely monitor the company’s developments before considering any new investment. The stock’s recent underperformance relative to benchmarks and absence of institutional support further reinforce the cautious stance.
MarketsMOJO’s rating system aims to provide a holistic view by integrating quality, valuation, financial trends, and technical analysis, helping investors make informed decisions based on current data rather than historical snapshots.
Key Takeaway: As of today, Repro India Ltd. is best approached with caution, and the Strong Sell rating serves as a clear signal to reassess exposure and consider alternatives with stronger fundamentals and market positioning.
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