Rajoo Engineers Ltd Stock Falls to 52-Week Low of Rs.60.36

Stock Price Movement and Market Context

On 1 February 2026, Rajoo Engineers Ltd’s share price touched an intraday low of Rs.60.36, representing a 4.72% drop for the day and underperforming its sector by 4.28%. The stock closed with a day change of -2.92%, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This downward momentum coincided with a sharp reversal in the broader market, where the Sensex, after opening 119.19 points higher, declined by 1,192.60 points to close at 81,196.37, down 1.3%. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed technical signals.

Long-Term Price Performance

Over the past year, Rajoo Engineers Ltd has experienced a substantial decline of 66.39%, a stark contrast to the Sensex’s positive return of 6.00% and the BSE500’s 6.42% gain over the same period. The stock’s 52-week high was Rs.188, highlighting the extent of the recent price erosion. This performance places Rajoo Engineers among the weaker performers in the industrial manufacturing sector and the broader market.

Valuation and Financial Metrics

Despite the steep price decline, the company’s financial metrics present a nuanced picture. Rajoo Engineers holds a return on equity (ROE) of 16.5%, which is a respectable figure within its industry. However, the stock’s price-to-book (P/B) value stands at 3.5, indicating a relatively expensive valuation compared to its peers’ historical averages. The company’s PEG ratio is notably low at 0.2, reflecting the relationship between its price-to-earnings ratio and earnings growth rate.

Profitability and Growth Trends

Rajoo Engineers has demonstrated robust growth in profitability over the past year. Operating profit has increased at an annual rate of 87.40%, with a 93.8% rise reported in the most recent quarter. The company declared very positive quarterly results in December 2025, marking the eleventh consecutive quarter of positive earnings. Net sales for the quarter reached Rs.87.60 crores, growing by 56.21%, while PBDIT hit a record Rs.22.27 crores. Additionally, cash and cash equivalents stood at a high of Rs.131.71 crores as of the half-year mark, underscoring a strong liquidity position. The company maintains a low average debt-to-equity ratio of zero, reflecting a conservative capital structure.

Institutional Investor Activity

Institutional participation in Rajoo Engineers has declined over the previous quarter, with a reduction of 1.61% in their collective stake, now standing at 2.73%. Institutional investors typically possess greater analytical resources and tend to adjust holdings based on fundamental assessments, which may reflect their cautious stance on the stock amid recent price weakness.

Sector and Market Comparison

Rajoo Engineers’ underperformance is notable when compared to its sector and the broader market indices. While the industrial manufacturing sector has faced headwinds, the company’s stock has lagged behind peers and the BSE500 index, which posted a 6.42% return over the last year. This divergence highlights the challenges faced by the company’s shares despite positive earnings growth and a strong balance sheet.

Technical Indicators and Moving Averages

The stock’s trading below all major moving averages signals a bearish technical trend. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price level, indicating sustained downward pressure. This technical positioning may influence short-term trading dynamics and investor sentiment.

Mojo Score and Rating Update

Rajoo Engineers currently holds a Mojo Score of 48.0, with a Mojo Grade of Sell, downgraded from Hold as of 1 February 2025. The market capitalisation grade is 3, reflecting its mid-tier valuation status. This rating adjustment aligns with the stock’s recent price performance and relative valuation metrics.

Summary of Key Financial and Market Data

The company’s financial results indicate strong growth in operating profit and net sales, alongside a robust cash position and negligible debt. However, the stock’s valuation remains elevated relative to book value, and the price has declined sharply over the past year. Institutional investors have reduced their holdings, and the stock’s technical indicators point to continued downward momentum. The broader market environment has also been challenging, with the Sensex experiencing significant volatility and a recent sharp decline.

Conclusion

Rajoo Engineers Ltd’s stock reaching a 52-week low of Rs.60.36 reflects a complex interplay of valuation considerations, market sentiment, and sector dynamics. While the company’s financial performance has shown encouraging growth trends, the share price has not mirrored these fundamentals, resulting in a notable divergence from market and sector benchmarks. The current market conditions and technical indicators suggest a cautious environment for the stock.

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