Key Events This Week
Feb 2: Stock opens at Rs.104.35, Sensex down 1.03%
Feb 3: Strong rally to Rs.108.85 (+4.31%) alongside Sensex +2.63%
Feb 5: Rating upgraded to Sell on technical improvements
Feb 6: Q2 FY26 results reveal 44% profit plunge; stock surges 10.78%
Monday, 2 February: Modest Start Amid Broader Market Weakness
Raghuvir Synthetics began the week at Rs.104.35, gaining 0.63% despite the Sensex declining by 1.03% to close at 35,814.09. The stock’s resilience in a weak market set an early tone of relative strength, supported by a moderate volume of 662 shares traded. This initial uptick hinted at underlying technical support despite ongoing fundamental challenges.
Tuesday, 3 February: Strong Rally Aligns with Market Recovery
The stock surged 4.31% to Rs.108.85 on significantly higher volume of 6,216 shares, outperforming the Sensex’s 2.63% gain to 36,755.96. This rally reflected growing investor interest and positive technical momentum, as the broader market recovered sharply. The price advance was the largest daily percentage gain of the week, signalling renewed confidence ahead of the company’s rating update and quarterly results.
Wednesday, 4 February: Continued Gains on Moderate Volume
Raghuvir Synthetics extended its gains by 1.19% to Rs.110.15, with volume tapering to 985 shares. The Sensex also advanced modestly by 0.37% to 36,890.21. The steady price increase amid lower volume suggested consolidation after Tuesday’s strong move, maintaining the positive technical trend ahead of the rating revision.
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Thursday, 5 February: Rating Upgrade Spurs Mixed Reaction
On 5 February, MarketsMOJO upgraded Raghuvir Synthetics Ltd’s Mojo Grade from Strong Sell to Sell, citing improved technical indicators despite persistent fundamental concerns. The stock declined 3.59% to Rs.106.20 on volume of 1,268 shares, underperforming the Sensex which fell 0.53% to 36,695.11. This dip reflected investor caution following the announcement, as the upgrade was driven primarily by technical improvements rather than fundamental strength.
The upgrade highlighted a shift in technical momentum: weekly MACD and KST indicators turned mildly bullish, Bollinger Bands showed weekly bullish signals, and daily moving averages remained mildly bearish. However, the company’s long-term fundamentals remain weak, with a modest average ROCE of 6.72%, high debt levels (Debt/EBITDA 3.62x), and subdued growth rates. The rating revision thus signalled cautious optimism focused on price action rather than operational turnaround.
Friday, 6 February: Sharp Profit Decline Contrasts with Price Surge
Despite reporting a 44% plunge in Q2 FY26 profit, Raghuvir Synthetics closed the week on a strong note, rallying 10.78% to Rs.117.65 on heavy volume of 6,967 shares. The Sensex rose marginally by 0.10% to 36,730.20. The sharp price jump following disappointing earnings suggests that investors were encouraged by the company’s revenue growth and the prior technical upgrade, possibly anticipating a recovery in future quarters.
The quarterly results revealed a significant profit contraction despite top-line expansion, underscoring ongoing operational challenges. However, the stock’s strong weekly performance, culminating in a 13.45% gain, indicates that market sentiment has shifted towards a more positive near-term outlook, driven by technical factors and selective optimism on financial trends.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.104.35 | +0.63% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.108.85 | +4.31% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.110.15 | +1.19% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.106.20 | -3.59% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.117.65 | +10.78% | 36,730.20 | +0.10% |
Key Takeaways
Positive Signals: Raghuvir Synthetics outperformed the Sensex by a wide margin, gaining 13.45% versus the benchmark’s 1.51% rise. The upgrade from Strong Sell to Sell by MarketsMOJO on 5 February was driven by improved technical indicators, including mildly bullish MACD and KST weekly trends and positive Bollinger Bands signals. The stock’s strong finish on Friday despite a 44% profit decline suggests investor focus on revenue growth and technical momentum rather than short-term earnings volatility.
Cautionary Notes: Fundamental challenges remain significant. The company’s long-term ROCE is modest at 6.72%, with a high Debt to EBITDA ratio of 3.62 times, indicating financial leverage risks. The 44% plunge in quarterly profit highlights operational pressures despite revenue growth. The rating upgrade to Sell reflects cautious optimism but does not eliminate concerns about valuation and growth sustainability. Investors should remain vigilant about the company’s ability to convert revenue gains into consistent profitability.
Conclusion
Raghuvir Synthetics Ltd’s week was defined by a strong technical rebound and a cautious upgrade in investment rating, offset by disappointing quarterly profit results. The stock’s 13.45% weekly gain and outperformance of the Sensex underscore a shift in market sentiment towards a more positive near-term outlook, primarily driven by technical factors and selective financial improvements. However, persistent fundamental weaknesses and high leverage temper enthusiasm, suggesting that the stock remains a speculative play rather than a clear turnaround candidate. Close monitoring of upcoming quarters and broader market conditions will be essential for assessing the sustainability of this recovery.
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