Revathi Equipment India Ltd Stock Hits All-Time Low Amidst Continued Downtrend

Stock Performance and Market Context

On 9 January 2026, Revathi Equipment India Ltd’s stock closed just 2.44% above its 52-week low of ₹672, marking a fresh nadir in its trading history. The stock declined by 3.26% on the day, underperforming the Sensex which fell by 0.56%. Over the past week, the stock has dropped 8.47%, compared to a 2.39% decline in the Sensex, while the one-month performance shows a 7.40% fall against the Sensex’s 1.13% decrease.

More strikingly, the three-month performance reveals a steep 38.31% loss, contrasting with a 1.87% gain in the Sensex. Over the last year, the stock has plummeted by 67.32%, whereas the Sensex has appreciated by 7.84%. Year-to-date, the stock is down 4.89%, compared to a 1.77% decline in the benchmark index. The stock’s three- and five-year returns remain at zero, significantly lagging the Sensex’s 37.80% and 71.60% gains respectively, while the ten-year return also stands at zero against the Sensex’s 235.72% rise.

Trading activity has been somewhat erratic, with the stock not trading on one day out of the last 20, and it currently trades below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling persistent downward momentum.

Financial Results and Profitability Metrics

The company’s recent financial disclosures reveal a marked deterioration in core business metrics. Net sales for the quarter stood at ₹22.83 crore, reflecting a sharp decline of 38.6% compared to the average of the previous four quarters. This decline in sales has contributed to a series of negative quarterly results, with the company reporting losses for four consecutive quarters.

Profit after tax (PAT) for the latest six-month period was ₹0.99 crore, representing a contraction of 37.15%. Operating profit to interest ratio for the quarter was recorded at -0.42 times, indicating that operating profits are insufficient to cover interest expenses, a sign of financial strain.

Return on equity (ROE) averaged 8.19%, a figure that points to low profitability relative to shareholders’ funds. This modest ROE, combined with operating losses, underlines the company’s weak long-term fundamental strength. Despite these challenges, the stock maintains a price-to-book value of 1.7, which is considered very attractive from a valuation perspective.

Comparative Performance and Market Position

Revathi Equipment India Ltd’s performance has been below par not only in the near term but also over the long term. The stock has underperformed the BSE500 index over the last three months, one year, and three years. This underperformance is reflected in the stock’s stagnant returns over three and five years, contrasting sharply with the broader market’s robust gains.

The company’s market capitalisation grade stands at 4, indicating a relatively small market cap within its sector. The Mojo Score assigned to the stock is 15.0, with a Mojo Grade of Strong Sell as of 11 November 2025, an upgrade from the previous Sell rating. This grading reflects the company’s current financial and market challenges.

Promoters remain the majority shareholders, maintaining control over the company’s strategic direction amid these difficult times.

Sector and Industry Considerations

Operating within the industrial manufacturing sector, Revathi Equipment India Ltd faces a competitive landscape that has seen mixed performance across peers. The sector’s overall trends have been more resilient compared to the company’s results, as evidenced by the stock’s underperformance relative to sector benchmarks. The company’s inability to maintain sales growth and profitability contrasts with broader industrial manufacturing trends, which have generally shown more stability.

The stock’s trading below all major moving averages further emphasises the prevailing negative sentiment and technical weakness. This persistent downtrend highlights the severity of the company’s current position within its sector.

Summary of Key Financial Indicators

To summarise, the company’s key financial indicators as of the latest reporting period include:

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


• Operating profit to interest ratio at -0.42 times


• Return on equity averaging 8.19%


• Profit after tax contraction of 37.15% over six months


• Mojo Score of 15.0 with a Strong Sell grade


• Market cap grade of 4

These figures collectively illustrate the company’s current financial stress and the challenges it faces in reversing its downward trajectory.

Trading and Valuation Snapshot

The stock’s valuation remains relatively attractive on a price-to-book basis at 1.7, which may reflect market expectations of continued difficulties. The stock’s proximity to its 52-week low and its consistent underperformance relative to the Sensex and BSE500 indices underscore the cautious stance adopted by market participants.

Ownership and Control

Promoters continue to hold the majority stake in Revathi Equipment India Ltd, maintaining significant influence over corporate governance and strategic decisions. This concentrated ownership structure remains a notable feature amid the company’s ongoing financial challenges.

Conclusion

Revathi Equipment India Ltd’s stock reaching an all-time low reflects a culmination of sustained declines in sales, profitability, and market confidence. The company’s financial metrics and market performance indicate a difficult period characterised by shrinking revenues and operating losses. While the stock’s valuation metrics suggest some degree of market pricing for these challenges, the overall picture remains one of significant headwinds within the industrial manufacturing sector.

Unlock special upgrade rates for a limited period. Start Saving Now →