Raw Edge Industrial Solutions Ltd Hits All-Time Low Amid Prolonged Downtrend

Stock Performance and Market Context

The stock declined by 3.01% on 28 Jan 2026, underperforming the Sensex, which gained 0.15% on the same day. Over the past week, Raw Edge Industrial Solutions Ltd fell 5.73%, while the Sensex remained nearly flat with a 0.08% increase. The monthly performance paints a more severe picture, with the stock plunging 25.30% compared to the Sensex’s modest decline of 3.60%. Over three months, the stock has lost 41.68%, vastly underperforming the benchmark’s 3.13% drop.

Year-to-date figures reveal a 25.65% loss for Raw Edge Industrial Solutions Ltd, against a 3.81% decline in the Sensex. The one-year performance is particularly stark, with the stock down 54.58%, while the Sensex posted an 8.00% gain. Over three and five years, the stock has declined 68.87% and 61.93% respectively, in contrast to the Sensex’s robust gains of 38.17% and 74.89%. The ten-year performance remains flat at 0.00%, while the Sensex soared 235.02% in the same period.

Technical Indicators and Sector Comparison

Raw Edge Industrial Solutions Ltd is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a persistent bearish trend. This contrasts with the broader Mining & Minerals sector, which has gained 4.37% recently, highlighting the stock’s relative weakness within its industry.

Financial Metrics and Profitability Trends

The company’s financial health remains under pressure. Its operating profits have declined at a compound annual growth rate (CAGR) of -26.94% over the last five years, indicating sustained erosion in core earnings. The Debt to EBITDA ratio stands at a high 6.63 times, reflecting limited capacity to service debt obligations comfortably.

Return on Equity (ROE) averages a mere 0.03%, signalling minimal profitability generated per unit of shareholders’ funds. Return on Capital Employed (ROCE) is recorded at 3.2%, which, while modest, is accompanied by a very attractive valuation metric with an Enterprise Value to Capital Employed ratio of 0.9. This suggests the stock is trading at a discount relative to its peers’ historical valuations.

Recent Quarterly and Nine-Month Results

In the quarter ending September 2025, net sales fell by 21.3% to ₹8.40 crores compared to the previous four-quarter average. Profit after tax (PAT) for the nine-month period declined by 24.68%, registering a loss of ₹1.42 crores. The PBDIT for the quarter was at its lowest level, ₹0.56 crores, underscoring the ongoing financial difficulties.

Long-Term Underperformance and Shareholding

Raw Edge Industrial Solutions Ltd has consistently underperformed the BSE500 benchmark over the past three years, with negative returns in each annual period. The stock’s cumulative losses over one, three, and five years starkly contrast with the broader market’s positive trajectory. Promoters remain the majority shareholders, maintaining control despite the challenging market conditions.

Summary of Key Ratings and Scores

MarketsMOJO assigns Raw Edge Industrial Solutions Ltd a Mojo Score of 17.0, categorising it as a Strong Sell. This represents a downgrade from the previous Sell rating, effective from 04 Nov 2025. The Market Cap Grade is 4, reflecting the company’s relatively modest market capitalisation within its sector.

The downgrade and low Mojo Score are driven by the company’s weak long-term fundamentals, poor profitability metrics, and persistent share price decline despite a sector that has shown gains. The stock’s underperformance relative to the Sensex and its peers further substantiates this assessment.

Valuation and Profitability Discrepancies

While the stock’s valuation metrics suggest it is trading at a discount compared to peers, this is accompanied by a significant decline in profitability. Over the past year, profits have fallen by 175%, a severe contraction that has not been matched by the broader sector or market indices.

This disparity between valuation and earnings performance highlights the challenges faced by Raw Edge Industrial Solutions Ltd in maintaining operational and financial stability.

Conclusion

Raw Edge Industrial Solutions Ltd’s stock reaching an all-time low is a reflection of prolonged financial difficulties and sustained underperformance relative to the broader market and its sector. Despite trading at a valuation discount, the company’s declining profitability, high leverage, and weak returns on equity underscore the severity of its current situation. The downgrade to a Strong Sell rating by MarketsMOJO further emphasises the challenges faced by the company in reversing its downward trend.

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