Rajesh Exports Ltd Falls 8.47%: Four Key Factors Behind the Weekly Decline

23 February 2026: Modest Opening Gains Amid Broader Market Strength

Rajesh Exports Ltd began the week with a slight gain of 0.13%, closing at Rs.158.35 on 23 February 2026. This marginal increase came alongside a stronger Sensex, which rose 0.39% to 36,817.86. The stock’s volume was moderate at 19,276 shares, reflecting cautious investor interest. Despite this positive start, the stock remained well below its 52-week high of Rs.239, signalling underlying weakness relative to the broader market’s momentum.

24 February 2026: Technical Momentum Shifts Amid Prolonged Underperformance

On 24 February, Rajesh Exports faced a notable shift in technical momentum, moving from a mildly bearish to a more pronounced bearish stance. The stock declined 1.55% to close at Rs.155.90, underperforming the Sensex’s 0.78% fall. Technical indicators such as the MACD and moving averages signalled increasing downward pressure, with the stock trading below key averages including the 50-day and 200-day lines. The Relative Strength Index (RSI) showed mixed signals, with weekly readings turning bullish but monthly remaining neutral, reflecting a complex technical picture.

25 February 2026: Bearish Momentum Intensifies

The bearish trend deepened on 25 February as Rajesh Exports’ stock price fell 2.21% to Rs.152.45, despite the Sensex gaining 0.41% to 36,679.75. Technical indicators confirmed a deteriorating outlook, with the MACD remaining bearish on the weekly chart and moving averages continuing to act as resistance. Bollinger Bands on both weekly and monthly charts indicated elevated volatility with a downward bias. The Know Sure Thing (KST) oscillator remained bearish weekly but mildly bullish monthly, suggesting some longer-term resilience that had yet to influence price action.

26 February 2026: Stock Hits 52-Week Low Amid Continued Underperformance

Rajesh Exports’ share price dropped to a fresh 52-week low of Rs.150 on 26 February, marking a significant milestone in its recent decline. The stock closed down 0.85% on the day, underperforming its sector by 0.77%. Despite the Sensex showing modest gains of 0.19%, the stock’s technical indicators remained firmly bearish, trading below all key moving averages. The company’s long-term returns remain weak, with a one-year decline of 9.63% contrasting with the Sensex’s 10.44% gain. Financial metrics reveal subdued profitability growth, with operating profit contracting at an annualised rate of 20.67% over five years and a low return on equity of 0.8%.

27 February 2026: Further Decline to Rs.144.75, Marking Continued Weakness

The week closed with Rajesh Exports’ stock falling sharply by 4.23% on 27 February to Rs.144.75, extending a four-day losing streak and marking the lowest close of the week. This decline outpaced the Sensex’s 1.16% fall, underscoring the stock’s relative weakness. The share price touched an intraday low of Rs.147, a fresh 52-week low, amid broader market caution. Despite strong recent quarterly results showing net sales growth of 34.18% and profit after tax rising 116.7%, the stock’s valuation metrics remain subdued, with a price-to-book ratio of 0.3 and a modest return on equity of 0.8%. Institutional investors continue to hold 26.22% of shares, indicating some confidence despite the downtrend.

Key Takeaways

Significant Underperformance: Rajesh Exports declined 8.47% over the week, markedly underperforming the Sensex’s 0.96% fall. The stock’s relative weakness was evident throughout the week, with multiple sessions of steep declines and fresh 52-week lows.

Bearish Technical Indicators: The stock’s technical momentum shifted from mildly bearish to outright bearish, with MACD, moving averages, Bollinger Bands, and Dow Theory assessments signalling sustained downward pressure. The stock consistently traded below key moving averages, limiting upside potential.

Mixed Financial Signals: Despite the weak price action, Rajesh Exports reported strong recent financial results, including robust sales and profit growth. However, long-term profitability metrics remain subdued, with contracting operating profits and low return on equity, contributing to valuation concerns.

Institutional Holding and Market Sentiment: Institutional investors maintain a significant stake of 26.22%, suggesting some confidence in the company’s fundamentals despite the technical weakness. The Mojo Score of 41.0 and Sell rating reflect cautious market sentiment.

Conclusion

Rajesh Exports Ltd’s performance over the week ending 27 February 2026 highlights a challenging environment marked by sustained technical weakness and significant price declines. While the broader market showed resilience on some days, the stock’s inability to hold key support levels and its fresh 52-week lows underscore persistent headwinds. The divergence between improving quarterly financial results and deteriorating price momentum suggests that investors remain cautious, weighing valuation and sectoral challenges heavily. The downgrade to a Sell rating by MarketsMOJO further emphasises the need for prudence. Moving forward, clearer technical signals and sustained fundamental improvements will be necessary to reverse the current downtrend.

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