Rajoo Engineers Stock Falls to 52-Week Low of Rs.75 Amid Market Pressure

Recent Price Movement and Market Context

On 21 Nov 2025, Rajoo Engineers touched Rs.75, its lowest level in the past year, following a continuous decline over the last ten days. During this period, the stock has recorded a cumulative return of -13.28%. This movement contrasts with the broader market, where the Sensex opened at 85,347.40 points, down by 285.28 points (-0.33%), and was trading at 85,455.89 points (-0.21%) at the time of reporting. Notably, the Sensex remains within 0.4% of its 52-week high of 85,801.70 points and is trading above its 50-day and 200-day moving averages, indicating a generally bullish market trend.

Rajoo Engineers’ share price is currently positioned below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained selling pressure and a lack of short-term momentum relative to its historical price levels.

Performance Comparison Over One Year

Over the past year, Rajoo Engineers has underperformed significantly compared to the broader market. The stock has recorded a negative return of -80.83%, while the Sensex has delivered a positive return of 10.69% during the same period. Similarly, the BSE500 index has generated returns of 9.02%, further highlighting the stock’s relative underperformance within the industrial manufacturing sector and the wider market.

Valuation and Profitability Metrics

Rajoo Engineers’ current valuation metrics indicate a Price to Book Value of 4.1, which is considered high relative to its peers’ average historical valuations. The company’s Return on Equity (ROE) stands at 16.5%, reflecting the profitability generated on shareholders’ equity. Despite the elevated valuation, the stock is trading at a discount compared to its peer group’s historical averages.

Interestingly, the company’s profits have shown a positive trend over the past year, with reported growth of 102.9%. The Price/Earnings to Growth (PEG) ratio is 0.6, suggesting that earnings growth is not fully reflected in the current share price. However, this has not translated into share price appreciation, as the stock’s market performance remains subdued.

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 cautious stance given the stock’s recent price behaviour and valuation considerations. Institutional investors typically possess greater resources to analyse company fundamentals, and their reduced stake could be indicative of shifting market assessments.

Financial Health and Operational Results

Rajoo Engineers maintains a low average Debt to Equity ratio of zero, indicating minimal reliance on debt financing. This conservative capital structure may provide some stability amid market volatility.

The company has demonstrated healthy long-term growth in operating profit, with an annual growth rate of 96.82%. In the most recent quarter ending September 2025, operating profit increased by 107.1%, contributing to a positive earnings announcement. The company has reported positive results for ten consecutive quarters, with Profit Before Tax (excluding other income) at Rs.16.50 crores, growing at a rate of 108.07% year-on-year.

Operating cash flow for the year reached Rs.70.51 crores, the highest recorded, while net sales for the first nine months stood at Rs.267.22 crores, indicating steady revenue generation despite the stock’s price challenges.

Summary of Key Factors Influencing the Stock

The recent decline in Rajoo Engineers’ share price to Rs.75, its 52-week low, reflects a combination of factors including sustained selling pressure, reduced institutional participation, and valuation considerations. While the company’s financial results show growth in profits and operating cash flow, these positive fundamentals have not been mirrored in the stock’s market performance over the past year.

The stock’s position below all major moving averages and its significant underperformance relative to the Sensex and BSE500 indices highlight the challenges faced in regaining market confidence. The broader market environment remains relatively stable, with the Sensex trading near its yearly highs and maintaining bullish technical indicators.

Rajoo Engineers’ low debt levels and consistent quarterly earnings growth provide a foundation of financial stability. However, the elevated Price to Book ratio and declining institutional holdings suggest that market participants are weighing valuation and liquidity factors carefully.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →