Price Movement and Market Context
On 24 Nov 2025, Rajoo Engineers opened with a gap up of 3.3%, touching an intraday high of Rs.76.73. However, the stock reversed course during the session, hitting an intraday low of Rs.71.4, which represents the new 52-week low. This intraday volatility was notable at 5.41%, indicating significant price fluctuations within the trading day. The stock closed with a day change of -3.33%, underperforming its sector by 3.58%.
The current price level places Rajoo Engineers well below its moving averages, trading lower than the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This technical positioning underscores the prevailing bearish momentum in the stock.
Extended Downtrend and Returns
Rajoo Engineers has been on a losing streak for the last eleven consecutive trading days, during which it has recorded a cumulative return of -17.38%. Over the past year, the stock’s performance has been markedly subdued, with a total return of -81.64%. This contrasts sharply with the broader market, where the Sensex has posted a positive return of 7.93% over the same period.
The stock’s 52-week high was Rs.395, highlighting the extent of the decline to the current low of Rs.71.4. This steep fall has contributed to a market capitalisation grade of 3, reflecting its relatively modest size within the industrial manufacturing sector.
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Financial Metrics and Valuation
Despite the stock’s price decline, Rajoo Engineers has demonstrated growth in profitability metrics. The company’s operating profit has expanded at an annual rate of 96.82%, with a 107.1% increase reported in the most recent quarter ending September 2025. Profit before tax excluding other income (PBT less OI) for the quarter stood at Rs.16.50 crore, reflecting a growth rate of 108.07%. Additionally, the operating cash flow for the year reached Rs.70.51 crore, the highest recorded, while the profit after tax (PAT) for the quarter was Rs.14.18 crore, growing at 78.8%.
Rajoo Engineers maintains a low debt-to-equity ratio, averaging zero, which indicates a conservative capital structure with minimal reliance on debt financing. The return on equity (ROE) is reported at 16.5%, suggesting a moderate level of profitability relative to shareholder equity.
Market Participation and Institutional Holding
Institutional investors have reduced their stake in Rajoo Engineers by 3.92% over the previous quarter, currently 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 relative to its peers.
In comparison to the broader BSE500 index, which has generated a return of 6.75% over the last year, Rajoo Engineers has underperformed significantly, highlighting the divergence between the company’s stock performance and the general market trend.
Sector and Market Environment
The industrial manufacturing sector, to which Rajoo Engineers belongs, has experienced mixed performance recently. On the day of the stock’s new low, the Sensex opened 88.12 points higher and was trading at 85,387.57, just 0.49% below its 52-week high of 85,801.70. The Sensex has been on a three-week consecutive rise, gaining 2.61% during this period, supported by bullish moving averages with the 50-day DMA above the 200-day DMA. Mid-cap stocks have led the market, with the BSE Mid Cap index gaining 0.21% on the same day.
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Valuation Considerations
Rajoo Engineers is currently trading at a price-to-book value of 4, which is considered high relative to its peers’ average historical valuations. This valuation level, combined with the stock’s recent price behaviour, suggests that the market is pricing in certain risks or uncertainties. The company’s price-to-earnings growth (PEG) ratio stands at 0.6, reflecting the relationship between its valuation and earnings growth rate.
While the company has reported positive results for ten consecutive quarters, the stock’s price performance has not mirrored this trend, indicating a disconnect between operational profitability and market valuation.
Summary of Key Data Points
To summarise, Rajoo Engineers’ stock has reached a new 52-week low of Rs.71.4 after an 11-day losing streak, with a cumulative decline of 17.38% during this period. The stock’s one-year return is -81.64%, contrasting with the Sensex’s 7.93% gain. Despite this, the company has shown strong growth in operating profit and PAT, alongside a conservative debt profile. Institutional investors have reduced their holdings, and the stock trades below all major moving averages, reflecting current market sentiment.
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