Stock Price Movement and Market Context
On 1 December 2025, Revathi Equipment India’s stock touched an intraday low of Rs.760, establishing a fresh 52-week and all-time low. The stock opened the day with a gain of 2.61%, reaching an intraday high of Rs.797, but subsequently declined by 2.16% to close at the low point. This movement resulted in an underperformance relative to its sector, with the stock lagging by 1.41% compared to the broader Industrial Manufacturing sector.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market, where the Sensex, despite a volatile session, remains close to its 52-week high and trades above its 50-day and 200-day moving averages.
Financial Performance Highlights
Revathi Equipment India’s financial results over the past year have shown considerable contraction. The company’s net sales for the latest quarter stood at Rs.22.83 crores, reflecting a decline of 38.6% compared to the average of the previous four quarters. This downturn in sales has contributed to a series of negative quarterly results, with the company reporting losses in operating profit and a subdued profit after tax (PAT) of Rs.0.99 crore over the last six months, which itself represents a contraction of 37.15%.
The operating profit to interest ratio for the latest quarter was recorded at -0.42 times, highlighting the company’s challenges in covering interest expenses from its operating earnings. This metric underscores the pressure on the company’s earnings before interest and tax, which has been insufficient to meet financial obligations comfortably.
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Long-Term Performance and Valuation Metrics
Over the past year, Revathi Equipment India’s stock has recorded a return of -59.05%, significantly underperforming the Sensex, which posted a positive return of 7.32% over the same period. The stock’s 52-week high was Rs.2,191.40, illustrating the extent of the decline from its peak levels.
The company’s return on equity (ROE) averaged 8.19%, indicating modest profitability relative to shareholders’ funds. Despite the subdued earnings, the stock trades at a price-to-book value of approximately 1.9, which may be considered attractive in valuation terms given the current market price.
Revathi Equipment India has reported negative results for four consecutive quarters, reflecting persistent pressures on its financial health. The decline in net sales by over 40% and the contraction in profits by around 35% over the past year have contributed to the stock’s downward trajectory.
Market and Sector Comparison
While Revathi Equipment India has experienced a notable decline, the broader market environment shows a different trend. The Sensex, after an initial positive opening, traded lower by 0.08% at 85,641.90 points but remains within 0.48% of its 52-week high of 86,055.86. The index is supported by bullish moving averages, with the 50-day average positioned above the 200-day average, signalling overall market strength.
Small-cap stocks have shown resilience, with the BSE Small Cap index gaining 0.05% on the day, contrasting with the underperformance of Revathi Equipment India within its sector. This divergence highlights the specific challenges faced by the company relative to broader market trends.
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Shareholding and Corporate Structure
The majority shareholding in Revathi Equipment India remains with the promoters, maintaining a concentrated ownership structure. This factor often influences corporate governance and strategic decision-making within the company.
Despite the current valuation and financial metrics, the company’s stock continues to face downward pressure, reflecting the market’s assessment of its recent performance and outlook.
Summary of Key Financial Indicators
To summarise, the key financial indicators for Revathi Equipment India include:
- Net sales for the latest quarter at Rs.22.83 crores, down 38.6% from the previous four-quarter average
- Profit after tax over the last six months at Rs.0.99 crore, reflecting a 37.15% contraction
- Operating profit to interest ratio at -0.42 times, indicating earnings insufficient to cover interest expenses
- Return on equity averaging 8.19%
- Price-to-book value near 1.9
- Stock price decline of 59.05% over the past year
These figures illustrate the challenges faced by the company in maintaining profitability and market valuation amid a competitive and fluctuating industrial manufacturing sector.
Conclusion
Revathi Equipment India’s stock reaching a 52-week low of Rs.760 marks a significant milestone in its recent market performance. The decline reflects a combination of subdued sales, contracting profits, and valuation pressures. While the broader market and sector indices show relative strength, the company’s financial indicators and stock price trends highlight ongoing difficulties in reversing the downtrend.
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