Revathi Equipment India Ltd Falls to 52-Week Low of Rs.654

Stock Price Movement and Market Context

On 12 Jan 2026, Revathi Equipment India Ltd’s shares opened with a gap down of -3.92%, touching an intraday low of Rs.654, which is also the new all-time low for the stock. Despite this, the stock managed to recover somewhat during the day, reaching an intraday high of Rs.699.55, representing a 2.78% gain from the low. This intraday recovery followed three consecutive days of declines, signalling some short-term buying interest. However, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating persistent bearish momentum.

In comparison, the broader market benchmark, the Sensex, opened lower at 83,435.31, down by 140.93 points (-0.17%) and was trading marginally down at 83,558.18 (-0.02%) during the same session. The Sensex remains close to its 52-week high, just 3.11% shy of 86,159.02, highlighting a stark contrast between the index’s relative strength and Revathi Equipment’s underperformance.

Over the past year, Revathi Equipment’s stock has declined by a substantial -65.59%, while the Sensex has delivered a positive return of 7.99%. The stock’s 52-week high was Rs.2,126.55, underscoring the magnitude of the recent price erosion.

Financial Performance and Profitability Metrics

Revathi Equipment India Ltd has reported a series of negative financial results over the last four consecutive quarters. The company’s net sales have declined sharply, with the latest quarterly net sales at Rs.22.83 crores, down by 38.6% compared to the average of the previous four quarters. This significant contraction in sales volume has weighed heavily on the company’s revenue generation capacity.

Profit after tax (PAT) for the latest six months stands at Rs.0.99 crore, reflecting a decline of 37.15%. The operating profit to interest coverage ratio has deteriorated to -0.42 times in the most recent quarter, indicating that operating earnings are insufficient to cover interest expenses, a sign of financial strain.

The company’s average return on equity (ROE) is 8.19%, which is relatively low and points to limited profitability generated per unit of shareholders’ funds. Despite this, the stock trades at a price-to-book value of 1.6, suggesting a valuation that some may consider attractive given the current fundamentals.

Long-Term and Sectoral Performance

Over the last three years, Revathi Equipment has consistently underperformed the BSE500 index, as well as the broader industrial manufacturing sector. The stock’s negative returns over one year (-65.59%) and three months further underline the challenges faced by the company in maintaining investor confidence and market relevance.

The industrial manufacturing sector, in contrast, has shown more resilience, with the Sensex and related indices maintaining positive momentum. This divergence highlights the specific difficulties encountered by Revathi Equipment within its sector.

Shareholding and Market Grade Assessment

The majority shareholding in Revathi Equipment India Ltd remains with the promoters, indicating concentrated ownership. The company’s overall market capitalisation grade is rated at 4, reflecting its micro-cap status and associated liquidity considerations.

MarketsMOJO has assigned the stock a Mojo Score of 15.0 and upgraded its Mojo Grade from Sell to Strong Sell as of 11 Nov 2025, reflecting deteriorating fundamentals and weak long-term prospects. This grading takes into account the company’s financial metrics, trend assessments, and quality grades, signalling caution in the stock’s outlook.

Trading Patterns and Recent Volatility

The stock has experienced erratic trading behaviour, having not traded on one day out of the last 20 trading sessions. This irregularity may reflect low liquidity or intermittent investor interest. Despite the recent three-day decline, the stock’s intraday recovery today suggests some short-term volatility, though the overall trend remains downward.

Revathi Equipment’s performance today outpaced its sector by 4.21%, a modest relative gain that contrasts with the absolute price decline. This indicates that while the stock remains under pressure, it has marginally outperformed peers within the industrial manufacturing sector during the session.

Summary of Key Financial and Market Indicators

To summarise, Revathi Equipment India Ltd’s stock has reached a new 52-week low of Rs.654, reflecting a sustained decline driven by falling sales, reduced profitability, and weak financial ratios. The company’s operating losses and low return on equity contribute to a challenging fundamental backdrop. The stock’s valuation, while appearing attractive on a price-to-book basis, is overshadowed by deteriorating earnings and negative quarterly results.

Market indicators and grading from MarketsMOJO reinforce the view of a weak long-term fundamental strength, with the stock rated as a Strong Sell. The broader market’s relative strength further accentuates the stock’s underperformance within its sector and the wider industrial manufacturing industry.

Investors monitoring Revathi Equipment India Ltd should note the stock’s current position below all major moving averages and its recent price volatility. The company’s financial disclosures and market data highlight ongoing challenges that have contributed to the stock’s decline to its lowest level in over a year.

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