Key Events This Week
Feb 9: Reports flat quarterly performance amid margin pressures
Feb 10: Valuation shifts to very attractive despite market challenges
Feb 13: Week closes at Rs.17.51, down 3.74% for the week
9 February: Flat Quarterly Performance Amid Margin Pressures
Rajshree Polypack Ltd opened the week on a weak note, closing at Rs.17.40, down 4.34% from the previous close of Rs.18.19. This decline followed the release of quarterly results for the period ended December 2025, which revealed a flat financial performance with net sales contracting to ₹71.62 crores, the lowest in recent quarters. The company’s Profit Before Tax (excluding other income) fell sharply by 43.2% to ₹1.29 crores, while Profit After Tax declined by 22.7% to ₹2.20 crores.
The operating profit to interest coverage ratio deteriorated to 3.12 times, signalling tighter financial flexibility. Notably, non-operating income accounted for 55.67% of Profit Before Tax, indicating a reliance on income outside core operations. Despite these challenges, the company reported a 223.81% surge in PAT over the last six months, reaching ₹6.80 crores, and an improved Return on Capital Employed (ROCE) of 9.06% for the half-year period.
10 February: Valuation Shifts to Very Attractive Amid Market Challenges
The stock declined further to Rs.17.16, down 1.38% on the day, as valuation metrics came under scrutiny. Rajshree Polypack’s price-to-earnings (P/E) ratio stood at 8.80, significantly lower than sector peers such as Apollo Pipes (44.75) and Rajoo Engineers (19.37). Its price-to-book value (P/BV) was 0.74, trading below book value and signalling undervaluation.
Enterprise value to EBITDA ratio was 5.97, well below the sector average, suggesting the market prices the company at a discount relative to earnings before interest, taxes, depreciation and amortisation. However, profitability ratios remained modest, with ROCE at 7.74% and ROE at 6.62%. Despite the valuation appeal, the company’s Mojo Score was downgraded to 28.0, with a Strong Sell rating reflecting operational and market concerns.
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11 February: Minor Recovery Amid Market Stability
The stock rebounded slightly to Rs.17.32, gaining 0.93% on relatively low volume. This modest recovery came despite the Sensex advancing by 0.13%, reflecting some investor interest possibly driven by the attractive valuation metrics highlighted the previous day. However, the stock remained well below its previous week’s open, indicating persistent caution.
12 February: Gains Despite Sensex Decline
Rajshree Polypack advanced 1.96% to close at Rs.17.66, outperforming the Sensex which declined 0.56%. This marked the week’s highest closing price, suggesting some short-term buying interest. The increase may be attributed to value investors responding to the company’s low P/E and P/BV ratios, despite ongoing operational concerns.
13 February: Week Ends on a Weak Note
The stock slipped 0.85% to Rs.17.51 as the broader market fell sharply, with the Sensex down 1.40%. This decline capped a week of overall underperformance, with the stock losing 3.74% compared to the Sensex’s 0.54% fall. The week’s price action reflects the market’s cautious stance amid margin pressures and a downgraded outlook, despite the stock’s valuation appeal.
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Daily Price Performance: Rajshree Polypack Ltd vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-09 | Rs.17.40 | -4.34% | 37,113.23 | +1.04% |
| 2026-02-10 | Rs.17.16 | -1.38% | 37,207.34 | +0.25% |
| 2026-02-11 | Rs.17.32 | +0.93% | 37,256.72 | +0.13% |
| 2026-02-12 | Rs.17.66 | +1.96% | 37,049.40 | -0.56% |
| 2026-02-13 | Rs.17.51 | -0.85% | 36,532.48 | -1.40% |
Key Takeaways
Rajshree Polypack Ltd’s week was characterised by a significant decline in stock price, falling 3.74% against a 0.54% drop in the Sensex, signalling underperformance amid challenging fundamentals. The company’s flat quarterly revenue and sharp contraction in core profitability highlight operational headwinds, particularly margin pressures and a deteriorating interest coverage ratio.
Despite these challenges, the stock’s valuation metrics have become increasingly attractive. The P/E ratio of 8.80 and P/BV of 0.74 place it well below sector peers, suggesting potential value for investors willing to look beyond near-term difficulties. The EV to EBITDA multiple of 5.97 further supports this undervaluation thesis.
However, the company’s Mojo Score downgrade to Strong Sell and modest profitability ratios (ROCE 7.74%, ROE 6.62%) caution that valuation alone may not offset operational risks. The reliance on non-operating income to sustain profits and the weak price momentum underscore the need for careful monitoring of upcoming results and strategic initiatives.
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