Stock Performance and Market Context
On the trading day, the stock opened with a gap down of -4.18%, immediately setting an intraday low at Rs.675, which also represents its all-time low. The share price closed with a day change of -2.34%, underperforming the Industrial Manufacturing sector by -2.33%. This decline places the stock well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market index, Sensex, experienced a modest decline of 0.2%, trading at 84,870.88 points, which is just 1.52% shy of its 52-week high of 86,159.02. The Sensex remains supported by bullish technical indicators, trading above its 50-day moving average, which itself is positioned above the 200-day moving average, reflecting a generally positive market environment that Revathi Equipment has not been able to capitalise on.
Long-Term and Recent Performance Metrics
Over the past year, Revathi Equipment India Ltd has delivered a negative return of -65.61%, a stark contrast to the Sensex’s positive 7.84% gain over the same period. The stock’s 52-week high was Rs.2,191.40, highlighting the extent of the decline. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index across one-year, three-year, and three-month timeframes.
The company’s financial results have reflected this trend, with net sales falling by -40.14% in the September 2025 quarter. The latest quarterly net sales stood at Rs.22.83 crore, down -38.6% compared to the average of the previous four quarters. Profit after tax (PAT) for the latest six months was Rs.0.99 crore, representing a decline of -37.15%. Operating profit to interest ratio for the quarter was negative at -0.42 times, indicating challenges in covering interest expenses from operating earnings.
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Fundamental Strength and Valuation
Revathi Equipment India Ltd’s fundamental profile remains subdued. The company has been assigned a Mojo Score of 15.0 and a Mojo Grade of Strong Sell as of 11 Nov 2025, downgraded from a Sell rating. This reflects concerns over the company’s weak long-term fundamentals and profitability metrics.
The average Return on Equity (ROE) stands at 8.19%, indicating relatively low profitability generated from shareholders’ funds. Despite this, the stock trades at a Price to Book Value of 1.7, which may be considered attractive from a valuation perspective given the current earnings and sales contraction.
Operating losses have contributed to the negative sentiment, with the company reporting four consecutive quarters of negative results. The combination of declining sales, shrinking profits, and insufficient operating profit to cover interest expenses has weighed heavily on investor confidence and share price performance.
Shareholding and Sectoral Position
The majority shareholding remains with the promoters, who continue to hold a controlling stake in the company. Revathi Equipment operates within the Industrial Manufacturing sector, which has seen mixed performance in recent months. While the sector has experienced some volatility, Revathi Equipment’s relative underperformance has been notable, especially given the broader market’s resilience.
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Summary of Key Financial Indicators
To summarise, the company’s recent financial performance highlights several areas of concern:
- Net sales decline of over 40% in the latest quarter compared to prior periods
- Profit after tax contraction exceeding 35% in the last six months
- Operating profit to interest coverage ratio below zero, indicating earnings insufficient to cover interest obligations
- Consistent negative quarterly results over the past year
- Stock price down by nearly two-thirds over the last 12 months
These factors have culminated in the stock reaching its lowest price point in over a year, reflecting the challenges faced by the company in maintaining growth and profitability.
Technical Indicators and Market Sentiment
Technically, the stock’s position below all major moving averages signals a bearish trend. The gap down opening and intraday low at Rs.675 reinforce the downward momentum. This contrasts with the broader market’s relative strength, as the Sensex remains near its 52-week high and supported by positive moving average alignments.
The divergence between the stock’s performance and the overall market suggests company-specific factors are driving the decline rather than sector-wide or macroeconomic issues alone.
Conclusion
Revathi Equipment India Ltd’s fall to a 52-week low of Rs.675 on 29 Dec 2025 marks a continuation of a challenging period for the company. The combination of declining sales, reduced profitability, and weak coverage of interest expenses has contributed to the sustained downtrend. While the broader market and sector have shown resilience, the stock’s technical and fundamental indicators remain subdued, reflecting ongoing pressures on the company’s financial health and market valuation.
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