Raw Edge Industrial Solutions Ltd Falls to 52-Week Low of Rs.15.85

Stock Price Movement and Market Context

On 23 Jan 2026, Raw Edge Industrial Solutions Ltd’s share price fell sharply by 4.90%, closing at Rs.15.85, the lowest level recorded in the past year and also an all-time low. This decline outpaced the Minerals & Mining sector’s underperformance, with the stock lagging the sector by 3.18% on the day. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

The broader market context was also subdued, with the Sensex opening flat but eventually falling by 826.37 points or 0.97% to 81,509.57. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying resilience in the benchmark index despite the day’s losses.

Long-Term Performance and Relative Weakness

Over the past year, Raw Edge Industrial Solutions Ltd has delivered a negative return of -54.55%, a stark contrast to the Sensex’s positive 6.53% gain over the same period. This persistent underperformance extends beyond the last year, with the stock consistently lagging the BSE500 index in each of the previous three annual periods. The 52-week high for the stock was Rs.37.78, highlighting the steep decline in valuation over the last twelve months.

Financial Metrics and Profitability Concerns

The company’s financial performance has shown signs of deterioration, with a compound annual growth rate (CAGR) of operating profits declining by -26.94% over the last five years. This weak long-term fundamental strength is reflected in the company’s profitability metrics. The average return on equity (ROE) stands at a mere 0.03%, indicating minimal profitability generated per unit of shareholders’ funds.

Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 6.63 times, suggesting elevated leverage and potential strain on cash flows. The return on capital employed (ROCE) is modest at 3.2%, which, while low, contributes to the company’s valuation metrics.

Recent Quarterly and Nine-Month Results

In the quarter ended September 2025, Raw Edge Industrial Solutions Ltd reported net sales of Rs.8.40 crores, a decline of 21.3% compared to the average of the previous four quarters. Profit after tax (PAT) for the nine-month period fell by 24.68%, registering a loss of Rs.1.42 crores. The quarterly PBDIT was recorded at Rs.0.56 crores, the lowest level in recent periods, underscoring the challenges faced in maintaining operational profitability.

Valuation and Market Capitalisation

Despite the weak financial performance, the stock’s valuation metrics suggest it is trading at a discount relative to its peers. The enterprise value to capital employed ratio stands at 0.9, which is considered very attractive. The market capitalisation grade is rated at 4, reflecting the company’s micro-cap status and limited market presence.

Shareholding Pattern

The majority shareholding remains with the promoters, indicating concentrated ownership. This structure can influence strategic decisions and capital allocation but also limits liquidity in the stock.

Mojo Score and Rating Update

Raw Edge Industrial Solutions Ltd currently holds a Mojo Score of 17.0, categorised under a Strong Sell grade. This represents a downgrade from its previous Sell rating, effective from 04 Nov 2025. The downgrade reflects the deteriorating fundamentals and ongoing challenges faced by the company in reversing its negative trends.

Summary of Key Concerns

The stock’s fall to Rs.15.85, its 52-week and all-time low, is underpinned by a combination of weak profitability, high leverage, and sustained underperformance relative to the broader market and sector peers. The decline in net sales and profits in recent quarters further compounds the valuation pressures. While the stock’s valuation metrics indicate a discount, the fundamental indicators remain subdued.

Sector and Benchmark Comparison

Within the Minerals & Mining sector, Raw Edge Industrial Solutions Ltd’s performance contrasts with the broader sector trends, which have not experienced similar declines. The stock’s underperformance relative to the Sensex and BSE500 indices over multiple years highlights the challenges in regaining investor confidence and market share.

Conclusion

Raw Edge Industrial Solutions Ltd’s recent stock price movement to a new 52-week low reflects ongoing financial and market pressures. The company’s weak growth trajectory, profitability metrics, and leverage ratios have contributed to the current valuation and rating status. The stock remains below all major moving averages and continues to underperform its sector and benchmark indices, underscoring the challenges faced in the current market environment.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →