Stock Performance and Market Context
On 8 December 2025, Revathi Equipment India’s share price touched Rs.731, setting a fresh 52-week and all-time low. This movement comes amid a two-day consecutive decline, with the stock losing approximately 3.88% over this short span. Despite this, the stock marginally outperformed its sector on the day by 0.57%, as the broader Capital Goods sector experienced a fall of 2.13%.
When compared to benchmark indices, the stock’s performance has lagged considerably. Over the past day, Revathi Equipment India’s shares declined by 1.22%, while the Sensex recorded a smaller fall of 0.87%. The divergence widens over longer periods: the stock’s one-week return stands at -4.19% against the Sensex’s -0.79%, and over one month, the stock has shown a decline of 18.05%, contrasting with the Sensex’s positive 2.10%.
Extending the timeline further, the stock’s three-month return is -14.47%, while the Sensex gained 5.17%. The disparity is most pronounced over the last year, where Revathi Equipment India’s shares have declined by 65.71%, whereas the Sensex has appreciated by 3.98%. Year-to-date figures also highlight this trend, with the stock down 63.21% compared to the Sensex’s 8.73% rise.
Notably, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downward momentum.
Our latest monthly pick, this Large Cap from Aluminium & Aluminium Products, is outperforming the market! See the analysis that helped our Investment Committee select this winner.
- - Market-beating performance
- - Committee-backed winner
- - Aluminium & Aluminium Products standout
Financial Results and Profitability Metrics
Revathi Equipment India’s recent quarterly results reveal a challenging financial landscape. The company reported net sales of Rs.22.83 crores for the latest quarter, representing a decline of 38.6% compared to the average of the previous four quarters. This contraction in sales volume has contributed to a series of negative quarterly results, with the company posting losses in the last four consecutive quarters.
Profit after tax (PAT) for the latest six months stands at Rs.0.99 crore, reflecting a reduction of 37.15% relative to prior periods. Operating profit to interest ratio for the quarter is recorded at -0.42 times, indicating that operating earnings are insufficient to cover interest expenses.
The company’s average return on equity (ROE) is 8.19%, which suggests limited profitability generated per unit of shareholders’ funds. This figure is modest within the industrial manufacturing sector, where higher returns are often expected to justify investment.
Long-Term Performance and Valuation
Over the longer term, Revathi Equipment India’s stock has not delivered returns comparable to broader market indices. The stock has shown no gains over three, five, and ten-year horizons, while the Sensex has recorded returns of 35.79%, 86.29%, and 235.68% respectively over the same periods.
Despite the subdued price performance, the stock’s valuation metrics present a contrasting picture. The price-to-book value ratio stands at 1.8, which may be considered attractive relative to peers in the industrial manufacturing sector. However, this valuation is accompanied by a significant decline in profits, which have fallen by approximately 35% over the past year.
The company’s market capitalisation grade is relatively low, reflecting its diminished market value within the industrial manufacturing space. Promoters remain the majority shareholders, maintaining control over the company’s strategic direction.
Revathi Equipment India or something better? Our SwitchER feature analyzes this micro-cap Industrial Manufacturing stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Sector and Industry Considerations
Revathi Equipment India operates within the industrial manufacturing sector, specifically in the capital goods industry. The sector has experienced a decline of 2.13% recently, which has contributed to the downward pressure on the stock. However, the company’s underperformance relative to both its sector and the broader market indices highlights company-specific factors influencing its valuation and share price trajectory.
The stock’s trading below all major moving averages further underscores the prevailing negative momentum. This technical positioning often reflects investor caution and a lack of upward price catalysts in the near term.
Summary of Key Metrics
To summarise, Revathi Equipment India’s stock has reached a historic low of Rs.731, reflecting a sustained period of price weakness. Key financial indicators include:
- Net sales contraction of approximately 40% year-on-year in recent quarters
- Four consecutive quarters of negative financial results
- Operating profit to interest coverage ratio below zero, indicating operating losses relative to interest obligations
- Return on equity averaging 8.19%, signalling modest profitability
- Price-to-book ratio of 1.8, suggesting valuation remains relatively moderate despite earnings pressure
- Significant underperformance relative to Sensex and sector indices over multiple timeframes
These factors collectively illustrate the severity of the current situation faced by Revathi Equipment India within the industrial manufacturing landscape.
Limited Time Only! Upgrade now and get 1 Year of Stock of the week worth Rs. 14,999 for FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
