Revathi Equipment India Ltd Falls to 52-Week Low of Rs.640

Stock Price Movement and Trading Patterns

The stock price of Revathi Equipment India Ltd hit Rs.640 today, setting a fresh 52-week low and an all-time low for the company. This decline comes after three consecutive days of losses, during which the stock has fallen by 7.49%. The day’s performance saw a decrease of 1.54%, underperforming the Industrial Manufacturing sector by 2.54%. Trading activity has been somewhat erratic, with the stock not trading on one of the last 20 trading days. Additionally, the stock has been confined to a narrow trading range of just Rs.2 recently, indicating limited price movement amid subdued investor activity.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. This technical positioning highlights the prevailing bearish momentum and the absence of short-term or long-term upward price support.

Comparative Market Context

While Revathi Equipment India Ltd’s stock has been declining, the broader market has shown resilience. The Sensex opened 119.19 points higher and is currently trading at 82,547.84, up 0.34%. The index remains 4.37% below its 52-week high of 86,159.02. Mega-cap stocks are leading the gains, and although the Sensex is trading below its 50-day moving average, the 50-day average itself is above the 200-day moving average, signalling a generally positive medium-term trend for the market.

In stark contrast, Revathi Equipment India Ltd has delivered a one-year return of -64.56%, significantly underperforming the Sensex’s 7.52% gain over the same period. The stock’s 52-week high was Rs.1,980, underscoring the magnitude of the recent decline.

Financial Performance and Profitability Metrics

The company’s financial results have been consistently negative over the last five quarters. The latest quarterly profit after tax (PAT) stood at a loss of Rs.1.40 crore, representing a sharp fall of 153.2% compared to the average of the previous four quarters. Net sales for the quarter declined by 15.1% to Rs.32.23 crore, while interest expenses increased by 25.89% to Rs.2.82 crore, adding to the financial strain.

Over the last five years, the company’s operating profits have contracted at a compound annual growth rate (CAGR) of -26.82%, reflecting weakening long-term earnings capacity. The average return on equity (ROE) is 8.19%, indicating modest profitability relative to shareholders’ funds. Despite this, the stock trades at a price-to-book value of 1.6, which may be considered attractive given the current valuation levels.

The company’s underperformance extends beyond the last year. It has lagged the BSE500 index over the past three years, one year, and three months, highlighting persistent challenges in generating shareholder value.

Shareholding and Market Capitalisation

The majority shareholding in Revathi Equipment India Ltd is held by promoters, maintaining significant control over the company’s strategic direction. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status within the Industrial Manufacturing sector.

Mojo Score and Analyst Ratings

Revathi Equipment India Ltd currently holds a Mojo Score of 17.0, categorised as a Strong Sell. This rating was upgraded from Sell on 11 Nov 2025, indicating a further deterioration in the company’s outlook based on MarketsMOJO’s comprehensive analysis. The downgrade reflects weak long-term fundamentals, declining profitability, and ongoing negative quarterly results.

Summary of Key Metrics

To summarise, the stock’s recent fall to Rs.640 represents a continuation of a downward trend characterised by:

• A 64.56% decline in stock price over the past year
• Negative PAT for five consecutive quarters, with the latest quarter showing a loss of Rs.1.40 crore
• Declining net sales and rising interest expenses
• Trading below all major moving averages
• Underperformance relative to the Sensex and BSE500 indices
• A Strong Sell Mojo Grade with a score of 17.0

These factors collectively illustrate the challenges faced by Revathi Equipment India Ltd in maintaining market confidence and financial stability.

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