Stock Price Movement and Market Context
The stock of Real Eco-Energy Ltd (Stock ID: 204547) touched Rs.4.2, its lowest level in the past year, after a prolonged period of decline. Despite outperforming its sector by 10.82% on the day of this low, the stock has been under pressure, having fallen consecutively for seven days prior to a slight rebound. The current price stands well below its 52-week high of Rs.6.8, representing a decline of approximately 38.2% from that peak.
In comparison, the broader market index, Sensex, is trading at 82,712.20, down 1.15% from the previous close and about 4.17% below its own 52-week high of 86,159.02. The Sensex is currently below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed signals for the broader market. Meanwhile, the construction and real estate sector, which is related to the company’s operational environment, has declined by 2.19%.
Technical Indicators and Trend Analysis
Real Eco-Energy Ltd’s stock price is currently trading above its 5-day, 20-day, 50-day, and 100-day moving averages but remains below the 200-day moving average. This suggests some short-term support levels have been established, yet the longer-term trend remains subdued. The recent seven-day decline followed by a modest gain indicates a tentative trend reversal, though the overall momentum remains weak.
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Financial Performance and Fundamental Metrics
Real Eco-Energy Ltd’s financial indicators reveal persistent weaknesses that have contributed to its stock price decline. The company has experienced a negative compound annual growth rate (CAGR) of -29.70% in net sales over the past five years, signalling a contraction in its core revenue base. This decline in sales has weighed heavily on investor sentiment and valuation.
The company’s ability to service its debt is notably weak, with an average EBIT to interest ratio of -0.23, indicating that earnings before interest and taxes are insufficient to cover interest expenses. This financial strain raises concerns about the company’s leverage and cash flow management.
Profitability metrics also remain subdued. The average return on equity (ROE) stands at 3.96%, reflecting low returns generated on shareholders’ funds. Despite this, the company reported a ROE of 12.1 in the most recent period, which contrasts with its valuation metrics. The stock trades at a price-to-book (P/B) ratio of 7.8, suggesting a very expensive valuation relative to its book value.
Recent Earnings and Valuation Considerations
In the September 2025 quarter, Real Eco-Energy Ltd posted flat results, indicating no significant growth in earnings or revenue. Over the past year, the stock has generated a negative return of -17.87%, underperforming the benchmark BSE500 index in each of the last three annual periods. However, the company’s profits have risen by 53% during the same timeframe, resulting in a price/earnings to growth (PEG) ratio of 0.2, which typically suggests undervaluation relative to earnings growth. This disparity between profit growth and stock price performance highlights the market’s cautious stance.
Shareholding Pattern and Market Sentiment
The majority of Real Eco-Energy Ltd’s shares are held by non-institutional investors, which may contribute to higher volatility and less stable demand for the stock. Institutional investors often provide a stabilising influence, and their absence can exacerbate price swings during periods of uncertainty.
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Comparative Performance and Sectoral Impact
Over the last year, Real Eco-Energy Ltd’s stock has declined by 17.70%, contrasting with the Sensex’s positive return of 8.63%. This consistent underperformance against the benchmark index over three years underscores the challenges faced by the company within the oil sector. The sector itself has experienced mixed movements, with related industries such as construction and real estate showing declines, which may indirectly affect the company’s prospects.
The company’s Mojo Score stands at 21.0, with a Mojo Grade of Strong Sell as of 29 May 2025, reflecting the market’s assessment of its weak fundamentals and valuation concerns. The Market Cap Grade is rated 4, indicating a relatively small market capitalisation compared to larger peers.
Summary of Key Metrics
To summarise, Real Eco-Energy Ltd’s key financial and market metrics as of 13 February 2026 are:
- New 52-week low price: Rs.4.2
- 52-week high price: Rs.6.8
- One-year stock return: -17.70%
- Sensex one-year return: +8.63%
- Net sales CAGR (5 years): -29.70%
- Average EBIT to interest ratio: -0.23
- Average ROE: 3.96%
- Latest ROE: 12.1
- Price to Book Value: 7.8
- PEG ratio: 0.2
- Mojo Score: 21.0 (Strong Sell)
- Market Cap Grade: 4
Conclusion
Real Eco-Energy Ltd’s stock reaching a 52-week low of Rs.4.2 reflects a culmination of weak sales growth, limited profitability, and valuation concerns. Despite some recent profit growth and a minor uptick after a week of declines, the stock continues to face headwinds relative to the broader market and its sector peers. The company’s financial ratios and market metrics indicate ongoing challenges that have influenced its share price trajectory over the past year.
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