Key Events This Week
2 Feb: Stock hits 52-week low of Rs.155 amid market recovery
2 Feb: Valuation metrics shift to very attractive despite price weakness
6 Feb: Week closes at Rs.173.00, up 0.58% for the week
2 February: Sharp Decline to 52-Week Low Amid Market Recovery
Loyal Equipments Ltd’s share price plunged 6.22% to Rs.161.30 on 2 February 2026, marking a fresh 52-week low of Rs.155 during intraday trading. This decline occurred despite a broadly positive market backdrop, with the Sensex rebounding 2.63% that day to close at 36,755.96. The stock’s weakness reflected ongoing concerns about the company’s financial performance, including a 64.44% drop in profit before tax over the nine months ending December 2025 and a 20.03% contraction in profit after tax.
Technically, the stock remained below all key moving averages, signalling persistent downward momentum. The 52-week low underscored investor caution amid deteriorating profitability and subdued return on capital employed (ROCE) metrics, which stood at 20.76% for the half-year, the lowest in recent periods.
Valuation Metrics Signal Renewed Price Attractiveness
On the same day, valuation analysis revealed a significant shift in the stock’s attractiveness. Loyal Equipments Ltd’s price-to-earnings (P/E) ratio stood at 19.64, substantially lower than several peers in the industrial manufacturing sector, such as Gala Precision Engineering (35.22) and Indef Manufacturers (27.01). The price-to-book value (P/BV) ratio of 3.29 and an EV/EBITDA ratio of 12.52 further supported the view that the stock was trading at a discount relative to its earnings and asset base.
These valuation improvements prompted an upgrade in the company’s Mojo Grade from Strong Sell to Sell as of 27 January 2026, with a current Mojo Score of 31.0. Despite the cautious rating, the valuation reset suggested a potential entry point for value-oriented investors, especially given the company’s robust ROCE of 21.39% and return on equity (ROE) of 16.75%.
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3 to 5 February: Recovery Phase with Moderate Gains
Following the steep drop on 2 February, Loyal Equipments Ltd staged a recovery over the next three trading sessions. On 3 February, the stock gained 3.50% to close at Rs.166.95, outperforming the Sensex’s 2.63% rise. The upward momentum continued on 4 February with a 3.41% increase to Rs.172.65, while the Sensex advanced a modest 0.37%. On 5 February, the stock added a further 1.56% to Rs.175.35, despite the Sensex declining 0.53% that day.
These gains were accompanied by fluctuating volumes, with a notable spike to 8,558 shares traded on 5 February, indicating renewed investor interest. The stock’s recovery brought it close to the week’s high of Rs.175.35, reflecting some technical resilience after the earlier sell-off.
6 February: Slight Pullback to Close the Week
On the final trading day of the week, 6 February, Loyal Equipments Ltd retreated 1.34% to Rs.173.00, closing the week with a net gain of 0.58% from the previous Friday’s close of Rs.172.00. The Sensex, meanwhile, ended slightly higher by 0.10% at 36,730.20. The modest pullback in the stock price was accompanied by lower volume of 2,118 shares, suggesting a cautious stance among investors as the week concluded.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.161.30 | -6.22% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.166.95 | +3.50% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.172.65 | +3.41% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.175.35 | +1.56% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.173.00 | -1.34% | 36,730.20 | +0.10% |
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Key Takeaways from the Week
Positive Signals: The stock’s valuation metrics have improved significantly, with a P/E ratio of 19.64 and P/BV of 3.29 positioning Loyal Equipments Ltd as attractively priced relative to peers. The upgrade in Mojo Grade from Strong Sell to Sell reflects a less pessimistic outlook. The company’s strong ROCE of 21.39% and ROE of 16.75% indicate operational efficiency and shareholder value creation. The recovery in share price after the 52-week low suggests some technical support emerging.
Cautionary Notes: Despite the valuation appeal, the stock underperformed the Sensex by 0.93% over the week and remains below key moving averages, signalling ongoing technical weakness. The sharp decline to a 52-week low early in the week highlights persistent financial challenges, including a 64.44% drop in profit before tax and a 20.03% contraction in profit after tax over nine months. Volume fluctuations and the modest dividend yield of 0.62% suggest cautious investor sentiment.
Conclusion
Loyal Equipments Ltd’s week was characterised by a sharp early decline to a 52-week low, followed by a partial recovery that left the stock marginally higher by 0.58% at Rs.173.00. The stock’s performance lagged the Sensex’s 1.51% gain, reflecting ongoing concerns about profitability and technical positioning. However, the marked improvement in valuation metrics and the upgrade in Mojo Grade signal a potential turning point in price attractiveness. Investors should weigh these valuation benefits against the company’s recent earnings contraction and technical challenges. The week’s developments underscore a cautious but watchful stance as Loyal Equipments navigates a complex market environment.
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