Stock Performance and Market Context
On 30 Dec 2025, Raghuvir Synthetics Ltd’s share price slipped to Rs.104.4, representing a day change of -1.14%. This decline extends a two-day losing streak during which the stock has fallen by -3.78%. The stock’s performance today also lagged behind the Garments & Apparels sector by -0.55%, underscoring relative weakness within its industry group.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. This technical positioning highlights the challenges the stock faces in regaining upward traction in the near term.
In comparison, the Sensex opened slightly lower at 84,600.99 points, down -0.11%, and was trading near 84,682.12 points at the time of reporting. The benchmark index remains within 1.74% of its 52-week high of 86,159.02, indicating a relatively stable market environment contrasting with Raghuvir Synthetics’ underperformance.
Long-Term Returns and Relative Underperformance
Over the last year, Raghuvir Synthetics Ltd has delivered a negative return of -38.53%, a stark contrast to the Sensex’s positive 8.23% gain during the same period. This divergence emphasises the stock’s struggles amid broader market gains. Furthermore, the stock has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, reflecting a consistent pattern of below-par returns.
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Fundamental Metrics and Financial Health
Raghuvir Synthetics Ltd’s fundamental profile continues to reflect challenges. The company’s long-term Return on Capital Employed (ROCE) averages 6.72%, which is considered weak relative to industry standards. Over the past five years, net sales have grown at an annualised rate of 10.85%, while operating profit has increased by 6.08% annually, indicating modest growth but limited margin expansion.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 3.62 times. This elevated leverage ratio suggests the company carries a significant debt burden relative to its earnings before interest, taxes, depreciation, and amortisation, potentially constraining financial flexibility.
Despite these factors, the company has reported positive results for ten consecutive quarters. Operating cash flow for the latest fiscal year reached Rs.23.95 crores, the highest recorded, while the profit after tax (PAT) for the latest six months stood at Rs.6.65 crores, reflecting a growth rate of 41.49%. The half-year ROCE improved to 17.98%, indicating some operational efficiency gains in the short term.
Valuation and Market Perception
Raghuvir Synthetics Ltd’s current ROCE of 14.9% corresponds with a fair valuation, supported by an enterprise value to capital employed ratio of 6.1. The stock is trading at a discount compared to its peers’ average historical valuations, which may reflect market caution given its recent performance and financial metrics.
Over the past year, while the stock price has declined by -38.53%, the company’s profits have increased by 16%, resulting in a price-to-earnings-to-growth (PEG) ratio of 2.3. This ratio suggests that the market is pricing in slower growth prospects relative to earnings expansion.
Shareholding and Market Grade
The majority shareholding remains with the promoters, indicating stable ownership structure. However, the company’s overall market capitalisation grade is rated 4, reflecting its size and liquidity considerations.
MarketsMOJO has assigned Raghuvir Synthetics Ltd a Mojo Score of 26.0 and a Mojo Grade of Strong Sell as of 8 Dec 2025, an upgrade from the previous Sell rating. This grading reflects the stock’s weak long-term fundamentals and recent price performance, signalling caution for market participants.
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Summary of Key Price Levels and Trends
The stock’s 52-week high was Rs.173.95, reached earlier in the period, contrasting sharply with the current 52-week low of Rs.104.4. This wide price range highlights significant volatility and a downward trend over the past year.
Technical indicators confirm the stock’s bearish stance, with prices consistently below all major moving averages. The Sensex, meanwhile, remains relatively resilient, trading near its 52-week high and above its 200-day moving average, underscoring the stock’s relative underperformance within the broader market context.
Conclusion
Raghuvir Synthetics Ltd’s fall to a 52-week low of Rs.104.4 reflects a combination of subdued long-term growth, elevated leverage, and persistent price weakness. While the company has demonstrated some positive financial results in recent quarters, these have not translated into sustained share price recovery. The stock’s current valuation and market grade indicate ongoing caution among market participants, with the broader market environment contrasting its performance.
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