Raghunath International Ltd Falls to 52-Week Low of Rs 10.51

Price Movement and Market Context

The stock opened sharply lower at Rs.10.51, reflecting an 11.9% drop on the day, and traded at this level throughout the session. This decline represents a substantial underperformance against the FMCG sector, which itself fell by 10.6% on the same day. The intraday low of Rs.10.51 is the lowest price the stock has seen in the past year, down from its 52-week high of Rs.16.38.

Raghunath International Ltd’s share price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend. This contrasts with the broader market, where the Sensex, despite a negative opening and a fall of 242.58 points to 83,725.85 (-0.6%), remains just 2.91% shy of its 52-week high of 86,159.02. The Sensex has also recorded a 2.68% gain over the past three weeks, highlighting the stock’s relative weakness.

Financial Performance and Valuation Metrics

Over the last year, Raghunath International Ltd has delivered a total return of -29.79%, significantly lagging the Sensex’s positive 9.92% return. The company’s profitability has also deteriorated, with profits declining by 44.4% during the same period. The firm reported flat results in the December 2025 half-year, with cash and cash equivalents at a low of Rs.0.21 crore, indicating limited liquidity buffers.

The company’s return on equity (ROE) stands at 7.3%, which is modest and reflects limited profitability relative to shareholders’ funds. Despite this, the stock trades at a price-to-book value of 0.4, suggesting a valuation that is expensive relative to its earnings performance but fair when compared to peer historical averages.

Credit and Debt Servicing Concerns

The company’s ability to service its debt remains weak, as evidenced by an average EBIT to interest ratio of -0.06. This negative ratio indicates that earnings before interest and tax are insufficient to cover interest expenses, raising concerns about financial stability. The weak long-term fundamental strength is a key factor contributing to the stock’s current valuation and market sentiment.

Majority shareholding is held by non-institutional investors, which may influence liquidity and trading dynamics in the stock. The company’s Moody Score stands at 16.0, with a Mojo Grade of Strong Sell as of 12 Nov 2025, reflecting the deteriorated outlook and financial health.

Historical Underperformance and Sector Comparison

Raghunath International Ltd has consistently underperformed the BSE500 index over the past three years, with annual returns lagging the benchmark each year. This trend has persisted despite the FMCG sector’s relative stability and growth, underscoring company-specific challenges. The stock’s 1-year return of -29.79% contrasts sharply with the Sensex’s positive performance, highlighting the divergence from broader market trends.

Summary of Key Metrics

To summarise, the stock’s current price of Rs.10.51 represents a 35.8% decline from its 52-week high of Rs.16.38. The company’s financial indicators, including a low ROE of 7.46%, negative EBIT to interest coverage, and minimal cash reserves, contribute to a challenging valuation environment. The Mojo Grade of Strong Sell and a Mojo Score of 16.0 further reflect the stock’s current standing within the FMCG sector.

While the broader market and FMCG sector have shown resilience, Raghunath International Ltd’s share price trajectory and financial metrics indicate ongoing pressures that have culminated in the recent 52-week low.

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