Stock Price Movement and Market Context
On 8 December 2025, Revathi Equipment India’s share price touched Rs.731, the lowest level recorded in the past 52 weeks and also its all-time low. This price point is notably distant from its 52-week high of Rs.2,191.4, illustrating a substantial contraction in market valuation. Despite the stock outperforming its sector by 2.6% on the day, the broader Capital Goods sector declined by 2.09%, and the Sensex index fell by 0.71%, closing at 85,102.69 points.
The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained downward momentum. In contrast, the Sensex remains in a bullish phase, trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a divergence between the broader market and Revathi Equipment India’s share performance.
Financial Performance Overview
Over the last twelve months, Revathi Equipment India’s stock has recorded a return of -65.09%, significantly underperforming the Sensex, which has shown a positive return of 4.15% over the same period. The company’s financial results have reflected this trend, with net sales declining by 40.14% year-on-year as of September 2025. The latest quarterly net sales stood at Rs.22.83 crore, representing a 38.6% reduction compared to the average of the previous four quarters.
Profit after tax (PAT) for the latest six months was Rs.0.99 crore, showing a contraction of 37.15%. Operating profit to interest coverage ratio for the quarter was recorded at -0.42 times, indicating that operating earnings were insufficient to cover interest expenses. These figures highlight the pressures on the company’s profitability and cash flow generation capabilities.
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Long-Term and Recent Performance Trends
Revathi Equipment India has reported negative results for four consecutive quarters, reflecting persistent challenges in reversing its financial trajectory. The company’s average return on equity (ROE) stands at 8.19%, which indicates modest profitability relative to shareholders’ funds. This level of ROE is considered low within the industrial manufacturing sector, where stronger returns are typically expected to support sustainable growth.
Over the past three years, the stock has underperformed the BSE500 index across multiple time frames, including one year and three months, underscoring a prolonged period of subdued market performance. The company’s market capitalisation is graded at a lower level relative to peers, reflecting investor caution and valuation pressures.
Valuation and Shareholding Structure
Despite the subdued financial results, the stock exhibits a price-to-book value ratio of approximately 1.8, which may be viewed as attractive relative to some peers in the industrial manufacturing sector. This valuation metric suggests that the market price is less than twice the company’s book value per share, a factor that some market participants may consider when assessing the stock’s relative value.
The majority shareholding in Revathi Equipment India is held by promoters, indicating concentrated ownership. This structure can influence corporate governance and strategic decision-making processes within the company.
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Sector and Market Environment
The industrial manufacturing sector, within which Revathi Equipment India operates, has experienced mixed performance recently. While the Capital Goods sector declined by 2.09% on the day the stock hit its 52-week low, the broader market index Sensex showed resilience, trading near its 52-week high and maintaining bullish moving average trends. This divergence highlights sector-specific pressures impacting Revathi Equipment India more acutely than the overall market.
Given the stock’s position below all major moving averages, technical indicators suggest continued downward pressure. The gap between the stock’s current price and its historical highs further emphasises the scale of the correction experienced over the past year.
Summary of Key Financial Metrics
To summarise, Revathi Equipment India’s recent financial and market data reveal the following:
- New 52-week low and all-time low price of Rs.731
- One-year stock return of -65.09% versus Sensex’s 4.15%
- Net sales decline of approximately 40% year-on-year
- Profit after tax contraction of over 37% in the latest six months
- Operating profit to interest coverage ratio below zero at -0.42 times
- Average return on equity of 8.19%
- Price-to-book value ratio near 1.8
These figures collectively illustrate the challenges faced by Revathi Equipment India in maintaining revenue growth and profitability, alongside a significant decline in market valuation.
Conclusion
Revathi Equipment India’s fall to a 52-week low of Rs.731 marks a notable point in its recent market journey, reflecting a combination of subdued financial results and sector-specific headwinds. The stock’s performance contrasts with broader market trends, underscoring the unique pressures within its industrial manufacturing niche. While the company’s valuation metrics suggest some relative attractiveness, the ongoing contraction in sales and profits has contributed to the sustained downward movement in its share price.
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