Stock Performance and Market Context
The stock’s fall to Rs.99.95 represents a notable drop from its 52-week high of Rs.169.50, underscoring a year-long decline of 34.24%. This contrasts sharply with the broader market benchmark, the Sensex, which has delivered a positive return of 8.32% over the same period. Despite the Sensex opening lower today at 84,022.09 and trading marginally down by 0.15% at 84,057.83, it remains just 2.5% shy of its own 52-week high of 86,159.02.
Raghuvir Synthetics 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 indicates that the stock has struggled to regain upward traction in the near term.
Fundamental Assessment and Ratings
The company’s fundamental profile continues to weigh on investor sentiment. Raghuvir Synthetics holds a Mojo Score of 26.0 and has been assigned a Mojo Grade of Strong Sell as of 8 December 2025, a downgrade from its previous Sell rating. This reflects concerns over its weak long-term financial strength and growth prospects.
Key financial metrics highlight the challenges faced by the company. Its average Return on Capital Employed (ROCE) stands at a modest 6.72%, indicating limited efficiency in generating returns from its capital base. Over the past five years, net sales have grown at an annual rate of 10.85%, while operating profit growth has lagged at 6.08%, pointing to subdued profitability expansion.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 3.62 times, suggesting elevated leverage and potential strain on cash flows. These factors contribute to the stock’s underperformance relative to the BSE500 index over the last three years, one year, and three months.
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Recent Financial Highlights
Despite the stock’s subdued market performance, Raghuvir Synthetics has reported positive results for ten consecutive quarters. The company’s operating cash flow for the year reached a peak of Rs.23.95 crores, reflecting healthy cash generation capabilities. Profit after tax (PAT) for the latest six-month period stood at Rs.6.65 crores, registering a robust growth rate of 41.49% compared to previous periods.
The half-year ROCE improved significantly to 17.98%, indicating better utilisation of capital in the recent term. With a ROCE of 14.9% and an enterprise value to capital employed ratio of 5.8, the stock’s valuation appears fair relative to its operational metrics. Furthermore, it is trading at a discount compared to the average historical valuations of its peers in the Garments & Apparels sector.
However, the company’s price-to-earnings-to-growth (PEG) ratio of 2.2 suggests that earnings growth is not fully reflected in the current share price, which may be a factor in the ongoing market caution.
Shareholding and Sectoral Positioning
Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction. Raghuvir Synthetics operates within the Garments & Apparels industry, a sector that has seen mixed performance amid broader market fluctuations.
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Summary of Key Metrics
To summarise, Raghuvir Synthetics Ltd’s stock has declined to Rs.99.95, its lowest level in the past 52 weeks, reflecting a sustained downtrend over recent months. The stock’s performance is notably weaker than the broader market, with a one-year return of -34.24% compared to the Sensex’s 8.32% gain.
Financially, the company exhibits modest long-term growth and profitability, with average ROCE below 7% and a high debt burden relative to earnings. Nonetheless, recent quarters have shown positive earnings growth and improved cash flow generation, with PAT rising by over 40% in the latest half-year period.
Valuation metrics indicate the stock is trading at a discount to peers, though the PEG ratio suggests that earnings growth is not fully priced in. The stock’s technical indicators remain weak, trading below all major moving averages, which aligns with the current market sentiment.
Overall, Raghuvir Synthetics Ltd’s recent price action and financial profile highlight a complex picture of challenges and incremental improvements within the Garments & Apparels sector.
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