Raw Edge Industrial Solutions Ltd Falls to 52-Week Low of Rs.16.3

Stock Price Movement and Market Context

On 22 Jan 2026, Raw Edge Industrial Solutions Ltd recorded its lowest price in the past year at Rs.16.3, a level not seen before in its trading history. This new low represents a sharp fall from its 52-week high of Rs.38.99, reflecting a decline of over 58%. Despite this, the stock outperformed its sector by 2.48% on the day, showing a modest gain after four consecutive days of decline. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downtrend.

The broader market environment presents a mixed picture. The Sensex opened higher at 82,459.66, gaining 550.03 points (0.67%) but was trading slightly lower at 82,101.70 (0.23%) during the session. The index remains 4.94% below its 52-week high of 86,159.02 and has experienced a 4.27% decline over the past three weeks. Mid-cap stocks led the market rally with the BSE Mid Cap index gaining 0.94% on the day, contrasting with Raw Edge Industrial Solutions’ continued weakness.

Financial Performance and Underlying Concerns

Raw Edge Industrial Solutions Ltd’s financial metrics highlight several areas of concern that have contributed to the stock’s decline. The company’s one-year performance shows a negative return of -52.34%, starkly underperforming the Sensex’s positive 7.42% gain over the same period. This underperformance extends to a three-year horizon, with the stock consistently lagging behind the BSE500 benchmark.

Operating profit trends have been particularly weak, with a compound annual growth rate (CAGR) of -26.94% over the last five years. The company’s ability to service its debt is limited, as evidenced by a high Debt to EBITDA ratio of 6.63 times, indicating significant leverage relative to earnings. Profitability metrics also remain subdued, with an average Return on Equity (ROE) of just 0.03%, signalling minimal returns generated on shareholders’ funds.

Recent Quarterly Results

The company’s latest quarterly results further illustrate the challenges faced. Net sales for the quarter stood at Rs.8.40 crores, reflecting a decline of 21.3% compared to the previous four-quarter average. Profit after tax (PAT) for the nine-month period was negative at Rs.-1.42 crores, representing a deterioration of 24.68%. Earnings before interest, depreciation, taxes and amortisation (PBDIT) for the quarter were at a low Rs.0.56 crores, marking the lowest level recorded in recent periods.

Valuation and Comparative Metrics

Despite the subdued financial performance, Raw Edge Industrial Solutions Ltd exhibits a relatively attractive valuation on certain parameters. The company’s Return on Capital Employed (ROCE) stands at 3.2%, and it trades at an enterprise value to capital employed ratio of 0.9, which is considered very attractive. This valuation is discounted compared to the average historical valuations of its peers within the Minerals & Mining sector.

However, the stock’s profitability has sharply declined over the past year, with profits falling by 175%, underscoring the depth of the company’s earnings contraction. The majority shareholding remains with promoters, maintaining concentrated ownership.

Summary of Key Metrics

To summarise, Raw Edge Industrial Solutions Ltd’s current stock price at Rs.16.3 represents a significant decline from its 52-week high of Rs.38.99. The company’s financial indicators reveal persistent challenges, including declining sales, negative profitability, and high leverage. While valuation metrics suggest the stock is trading at a discount relative to peers, the underlying earnings deterioration and weak returns on equity highlight ongoing concerns.

The stock’s Mojo Score stands at 17.0 with a Mojo Grade of Strong Sell, upgraded from Sell on 4 Nov 2025, reflecting a deteriorated outlook based on comprehensive financial and market data. The market capitalisation grade is rated 4, indicating a relatively small market cap within its sector.

Market and Sector Comparison

In contrast to Raw Edge Industrial Solutions Ltd’s performance, the broader Minerals & Mining sector and mid-cap indices have shown resilience, with the BSE Mid Cap index gaining 0.94% on the day. The Sensex, despite a recent three-week decline, remains close to its 52-week high, underscoring the divergence between this stock and the wider market trends.

Raw Edge Industrial Solutions Ltd’s stock remains below all major moving averages, signalling a continuation of the downward trend. The recent modest gain after four days of losses may indicate short-term price stabilisation, but the overall trend remains subdued.

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