Rexnord Electronics & Controls Ltd Falls to 52-Week Low of Rs.62

Stock Performance and Market Context

On 23 Feb 2026, Rexnord Electronics & Controls Ltd (Stock ID: 289607) recorded its lowest price in the past year at Rs.62. This represents a notable drop from its 52-week high of Rs.112.5, indicating a depreciation of approximately 44.9% over the period. The stock has been on a downward trajectory for the last two consecutive days, losing -7.45% in returns during this short span.

In comparison, the Sensex index has shown resilience, climbing 277.32 points to close at 83,184.15, a 0.45% gain on the day. The Sensex remains just 3.58% shy of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. Rexnord Electronics & Controls Ltd, however, has underperformed its sector by -0.7% today and continues to trade below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

Financial Metrics and Fundamental Assessment

The company’s financial health has been under scrutiny, with a Mojo Score of 14.0 and a Mojo Grade recently downgraded to Strong Sell from Sell as of 07 Jan 2026. This downgrade reflects concerns over the company’s long-term fundamentals and recent financial results.

Rexnord Electronics & Controls Ltd has exhibited a modest compound annual growth rate (CAGR) of 6.52% in operating profits over the last five years, which is considered weak relative to industry standards. The latest quarterly results for December 2025 revealed a net loss (PAT) of Rs. -1.06 crore, a steep decline of -207.3% compared to the previous four-quarter average. This negative profitability has weighed heavily on investor sentiment.

Return on Capital Employed (ROCE) has also deteriorated, with the half-year figure at a low 7.18%, indicating limited efficiency in generating returns from capital invested. Cash and cash equivalents stand at Rs.4.65 crore, the lowest recorded in recent periods, raising questions about liquidity buffers.

Comparative Performance and Valuation

Over the past year, Rexnord Electronics & Controls Ltd has generated a negative return of -30.19%, significantly underperforming the Sensex, which posted a positive 10.49% return over the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, highlighting persistent underperformance.

Despite these challenges, the company’s valuation metrics present some relative attractiveness. The ROCE of 6.4 and an enterprise value to capital employed ratio of 0.9 suggest that the stock is trading at a fair value compared to its peers’ historical averages. However, this valuation has not translated into positive returns or profit growth, as profits have declined by -62.6% over the last year.

Shareholding and Market Position

The majority ownership of Rexnord Electronics & Controls Ltd remains with promoters, maintaining a stable shareholding structure. The company operates within the industrial manufacturing sector, which has seen mixed performance amid broader market fluctuations.

Summary of Key Indicators

To summarise, Rexnord Electronics & Controls Ltd’s recent fall to Rs.62 marks a significant low point in its share price over the past year. The stock’s performance has been hampered by declining profitability, subdued returns on capital, and liquidity constraints. While valuation metrics suggest the stock is trading at reasonable levels relative to capital employed, the company’s financial results and market performance have not supported a positive outlook.

In contrast, the broader market, led by mega-cap stocks, continues to show strength, with the Sensex nearing its 52-week high. Rexnord’s underperformance relative to both sector peers and the benchmark indices underscores the challenges faced by the company in the current market environment.

Technical Indicators

The stock’s position below all major moving averages—5-day, 20-day, 50-day, 100-day, and 200-day—indicates sustained downward momentum. This technical weakness aligns with the fundamental concerns reflected in the company’s recent financial disclosures and rating downgrade to Strong Sell by MarketsMOJO.

Conclusion

Rexnord Electronics & Controls Ltd’s decline to a 52-week low of Rs.62 encapsulates a period of subdued financial performance and market challenges. The company’s weak profit growth, negative quarterly earnings, and low returns on capital have contributed to this outcome. While valuation metrics offer some balance, the overall picture remains one of underperformance relative to the broader market and sector peers.

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