Rajoo Engineers Stock Falls to 52-Week Low of Rs.70.11 Amid Market Underperformance

Stock Price Movement and Market Context

On 25 Nov 2025, Rajoo Engineers touched Rs.70.11, its lowest level in the past 52 weeks. This price point follows an extended period of decline, with the stock having fallen for 11 consecutive days before registering a modest gain today. Despite this slight uptick, the share price remains below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained downward momentum.

In contrast, the broader market has shown resilience. The Sensex opened 108.22 points higher and is currently trading at 85,095.65, up 0.23% for the day. The index is also approaching its 52-week high of 85,801.70, standing just 0.83% below that peak. Mega-cap stocks have been leading the market gains, with the Sensex trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a bullish trend for the benchmark index.

Performance Comparison Over One Year

Rajoo Engineers’ one-year performance contrasts sharply with the broader market. The stock has recorded a negative return of 81.15% over the last 12 months, while the Sensex has delivered a positive return of 6.20%. Even the BSE500 index, which represents a wider market spectrum, has generated returns of 4.74% during the same period. This divergence highlights the stock’s underperformance relative to both the benchmark and its sector peers.

Valuation and Financial Metrics

The company’s valuation metrics reveal a complex picture. Rajoo Engineers carries a price-to-book value of 3.9, which is considered relatively expensive compared to its historical peer valuations. The return on equity (ROE) stands at 16.5%, reflecting the company’s ability to generate profits from shareholders’ equity. Despite the steep decline in share price, the company’s profits have shown growth, with net profit after tax (PAT) rising by 78.8% in the most recent quarter and operating profit increasing at an annual rate of 96.82%.

Institutional Investor Activity

Institutional investors have reduced their holdings in Rajoo Engineers by 3.92% over the previous quarter, now collectively holding 4.34% of the company’s shares. This decline in institutional participation may reflect a shift in market assessment regarding the stock’s fundamentals. Institutional investors typically possess greater resources and analytical capabilities, and their reduced stake could be indicative of cautious sentiment.

Debt and Cash Flow Position

Rajoo Engineers maintains a low debt-to-equity ratio, averaging zero, which suggests a conservative capital structure with minimal reliance on borrowed funds. The company’s operating cash flow for the year reached Rs.70.51 crores, the highest recorded, supporting its capacity to fund operations and investments internally. Profit before tax excluding other income (PBT less OI) for the quarter stood at Rs.16.50 crores, reflecting a growth rate of 108.07%, further underscoring the company’s operational cash generation strength despite the share price decline.

Recent Quarterly Results

Rajoo Engineers has reported positive results for ten consecutive quarters, with the latest quarter showing a 107.1% increase in operating profit. This consistent profitability trend contrasts with the stock’s market performance, which has not reflected these financial improvements. The company’s ability to sustain profit growth over multiple quarters indicates underlying business resilience within the industrial manufacturing sector.

Sector and Industry Context

Operating within the industrial manufacturing sector, Rajoo Engineers faces competitive pressures and valuation comparisons with peers. While the stock trades at a discount relative to historical peer valuations, its current price level reflects market caution. The sector itself has seen mixed performance, with some companies benefiting from cyclical demand and others facing headwinds. Rajoo Engineers’ recent financial results suggest operational strength, but the market’s response has been subdued.

Summary of Key Financial Indicators

To summarise, Rajoo Engineers’ key financial indicators include:

• Return on Equity (ROE): 16.5%


• Price to Book Value: 3.9


• Operating Profit Growth (Annual Rate): 96.82%


• Profit Before Tax less Other Income (Quarterly): Rs.16.50 crores, growth of 108.07%


• Net Profit After Tax (Quarterly): Rs.14.18 crores, growth of 78.8%


• Operating Cash Flow (Yearly): Rs.70.51 crores


• Debt to Equity Ratio: Approximately zero

Despite these positive financial metrics, the stock’s price performance has not aligned with the company’s earnings growth, resulting in the current 52-week low.

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