Stock Performance and Market Context
On 6 February 2026, Revathi Equipment India Ltd’s stock closed just 0.52% above its 52-week low of Rs 610.35, continuing a losing streak that has persisted for three consecutive trading sessions. Over this period, the stock has delivered a cumulative negative return of 2.61%, underperforming its sector by 1.83% on the day. The stock’s price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In comparison, the broader market, represented by the Nifty index, closed at 25,693.70, up 0.2% on the day, supported by gains in mega-cap stocks. The Nifty remains 2.64% below its 52-week high of 26,373.20, with the 50-day moving average positioned above the 200-day moving average, indicating a mixed but relatively stable market environment.
Long-Term Decline and Financial Metrics
Over the last twelve months, Revathi Equipment India Ltd has experienced a steep decline of 66.70%, a stark contrast to the Sensex’s positive return of 7.07% over the same period. The stock’s 52-week high was Rs 1,999.20, highlighting the magnitude of the fall. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over the past three years, one year, and three months.
The company’s long-term financial health has been under pressure, reflected in a compounded annual growth rate (CAGR) of -26.82% in operating profits over the past five years. Return on Equity (ROE) has averaged 8.19%, indicating modest profitability relative to shareholders’ funds. Despite this, the stock maintains a price-to-book value of 1.5, which some may consider attractive given the valuation context.
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Recent Quarterly Results and Profitability Trends
The company has reported negative results for five consecutive quarters, underscoring ongoing difficulties in maintaining profitability. The latest quarter’s Profit After Tax (PAT) stood at a loss of Rs 1.40 crore, representing a decline of 153.2% compared to the average of the previous four quarters. Net sales for the quarter were Rs 32.23 crore, down 15.1% from the prior four-quarter average, while interest expenses increased by 25.89% to Rs 2.82 crore.
These figures highlight a contraction in revenue alongside rising financing costs, which have contributed to the subdued earnings performance. The company’s ability to generate returns on equity remains limited, with the most recent ROE reported at 8.3%, consistent with its historical average.
Valuation and Shareholding Structure
Despite the challenging financial backdrop, the stock’s valuation metrics suggest a relatively modest price-to-book ratio of 1.5, which may be considered reasonable in light of the company’s current earnings profile. The majority shareholding remains with the promoters, indicating concentrated ownership.
However, the combination of declining sales, increased interest costs, and sustained losses has weighed heavily on investor sentiment, reflected in the stock’s strong sell rating. The company’s Mojo Score stands at 17.0, with a recent downgrade from Sell to Strong Sell on 11 November 2025, reflecting deteriorating fundamentals and market outlook.
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Sector and Industry Considerations
Operating within the industrial manufacturing sector, Revathi Equipment India Ltd faces a competitive environment that has seen mixed performance across peers. While the broader market has shown resilience, the company’s stock has not mirrored this trend, reflecting company-specific factors that have contributed to its underperformance.
The stock’s decline to its 52-week low is a notable event, underscoring the challenges faced by the company in reversing its financial trajectory. The sustained negative quarterly results and weakening sales figures have been key contributors to this downward movement.
Summary of Key Metrics
To summarise, the stock’s key performance indicators include:
- 52-week low price: Rs 610.35 (close to current price)
- 52-week high price: Rs 1,999.20
- One-year stock return: -66.70%
- Sensex one-year return: +7.07%
- Operating profit CAGR (5 years): -26.82%
- Average Return on Equity: 8.19%
- Latest quarterly PAT: Rs -1.40 crore (down 153.2%)
- Latest quarterly net sales: Rs 32.23 crore (down 15.1%)
- Latest quarterly interest expense: Rs 2.82 crore (up 25.89%)
- Mojo Score: 17.0 (Strong Sell, downgraded from Sell on 11 Nov 2025)
The stock’s recent performance and financial results reflect a period of sustained pressure, with the share price reaching levels not seen in the past year. This development is significant for market participants monitoring the industrial manufacturing sector and the company’s trajectory.
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