Revathi Equipment India Ltd Falls to 52-Week Low of Rs.675

Stock Performance and Market Context

On the trading day, Revathi Equipment India Ltd opened with a gap down of -4.18%, reflecting immediate selling pressure. The stock touched an intraday low of Rs.675, representing a decline of -4.18% on the day and underperforming its Industrial Manufacturing sector by -2.33%. This price level is the lowest recorded for the stock in the past year and indeed its entire trading history.

Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. This contrasts with the broader market, where the Sensex opened flat and traded marginally lower by -0.19% at 84,879.01 points, remaining just 1.51% shy of its 52-week high of 86,159.02. The Sensex continues to maintain a bullish stance, trading above its 50-day moving average, which itself is positioned above the 200-day moving average.

Financial Performance and Fundamental Assessment

Revathi Equipment India Ltd’s financial results have been under pressure, contributing to the stock’s decline. The company reported a sharp fall in net sales by -40.14% in the September 2025 quarter, with quarterly net sales at Rs.22.83 crores, down -38.6% compared to the previous four-quarter average. Profit after tax (PAT) for the latest six months stood at Rs.0.99 crore, reflecting a contraction of -37.15%. Operating profit to interest coverage ratio for the quarter was negative at -0.42 times, indicating challenges in covering interest expenses from operating earnings.

The company has declared negative results for four consecutive quarters, highlighting a trend of subdued financial health. Over the past year, the stock has delivered a return of -65.61%, significantly underperforming the Sensex’s positive 7.86% return. Additionally, the stock has lagged behind the BSE500 index over the last three years, one year, and three months, underscoring persistent underperformance.

Valuation and Profitability Metrics

Despite the weak recent performance, the company’s valuation metrics present a contrasting picture. Revathi Equipment India Ltd holds a Price to Book Value ratio of 1.7, which is considered very attractive given the current market conditions. The average Return on Equity (ROE) stands at 8.19%, indicating modest profitability relative to shareholders’ funds. However, this level of ROE is relatively low for the sector and reflects limited efficiency in generating returns from equity capital.

Profitability has declined alongside sales, with profits falling by approximately -35% over the past year. The company’s long-term fundamental strength is assessed as weak, which is reflected in its recent downgrade from a Sell to a Strong Sell rating on 11 Nov 2025, accompanied by a Mojo Score of 15.0. The Market Cap Grade is rated at 4, indicating a smaller market capitalisation relative to peers.

Shareholding and Sector Position

The majority shareholding remains with the company’s promoters, maintaining control over strategic decisions. Revathi Equipment India Ltd operates within the Industrial Manufacturing sector, which has seen mixed performance in recent months. While the broader sector has shown resilience, the company’s stock has not mirrored this trend, continuing its downward trajectory.

Comparative Performance and Market Positioning

Over the past year, Revathi Equipment India Ltd’s stock has declined by -65.61%, a stark contrast to the Sensex’s gain of 7.86%. The stock’s 52-week high was Rs.2,191.40, highlighting the extent of the recent decline. This significant drop has placed the stock well below its historical trading range, reflecting the challenges faced by the company in maintaining growth and profitability.

The Sensex’s current position near its 52-week high and its bullish moving averages further accentuate the divergence between the broader market and Revathi Equipment India Ltd’s stock performance. This divergence is indicative of company-specific factors impacting investor sentiment and valuation.

Summary of Key Financial Indicators

To summarise, the company’s recent quarterly and half-yearly results show:

• Net sales decline of -40.14% year-on-year


• Quarterly net sales at Rs.22.83 crores, down -38.6% versus previous four-quarter average


• Profit after tax contraction of -37.15% over the last six months


• Operating profit to interest coverage ratio at -0.42 times, indicating insufficient operating earnings to cover interest expenses


• Average Return on Equity of 8.19%


• Price to Book Value ratio of 1.7

These figures collectively illustrate the financial pressures the company is experiencing, which have contributed to the stock’s decline to its 52-week low.

Market Sentiment and Outlook

The downgrade to a Strong Sell rating and the low Mojo Score of 15.0 reflect the market’s cautious stance on Revathi Equipment India Ltd. The stock’s underperformance relative to the sector and benchmark indices over multiple time frames further emphasises the challenges faced by the company in regaining investor confidence.

While the broader market maintains a positive trajectory, the stock’s current position below all major moving averages and its recent price action suggest continued pressure in the near term.

Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Saving Now →