Stock Price Movement and Market Context
On 19 Feb 2026, Rexnord Electronics & Controls Ltd’s share price declined to Rs.66, its lowest level in the past 52 weeks. This drop comes after two consecutive days of losses, with the stock falling by approximately 2.19% over this period. The day’s decline of 2.14% was in line with the broader Industrial Manufacturing sector’s performance, indicating sector-wide pressures rather than isolated company-specific events.
The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. This technical positioning suggests that short- and long-term momentum remains weak.
Meanwhile, the broader market has experienced volatility. The Sensex, after opening 235.57 points higher, reversed sharply to close down by 538.59 points at 83,431.23, a decline of 0.36%. Despite this, the Sensex remains within 3.27% of its 52-week high of 86,159.02, reflecting a relatively resilient benchmark compared to Rexnord’s underperformance.
Financial Performance and Fundamental Indicators
Rexnord Electronics & Controls Ltd’s financial metrics have contributed to the subdued investor sentiment. The company reported a negative quarterly profit after tax (PAT) of Rs. -1.06 crore in the December 2025 quarter, representing a steep fall of 207.3% compared to the previous four-quarter average. This negative PAT underscores the challenges faced in generating consistent earnings.
The return on capital employed (ROCE) for the half-year period stands at a low 7.18%, indicating limited efficiency in deploying capital to generate profits. Additionally, cash and cash equivalents have dwindled to Rs.4.65 crore, the lowest recorded in recent periods, which may constrain operational flexibility.
Over the last five years, the company’s operating profits have grown at a modest compound annual growth rate (CAGR) of 6.52%, a figure that falls short of robust growth expectations in the industrial manufacturing sector. This weak long-term fundamental strength has been a factor in the stock’s downgrade from a ‘Sell’ to a ‘Strong Sell’ rating by MarketsMOJO on 7 Jan 2026, with the stock’s Mojo Score now at 14.0.
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Comparative Performance and Valuation
Rexnord Electronics & Controls Ltd has consistently underperformed its benchmark indices. Over the past year, the stock has delivered a negative return of 25.09%, in stark contrast to the Sensex’s positive 9.90% gain during the same period. Furthermore, the stock has lagged behind the BSE500 index in each of the last three annual periods, highlighting persistent relative weakness.
Despite these challenges, the stock’s valuation metrics present a somewhat balanced picture. The company’s ROCE of 6.4% combined with an enterprise value to capital employed ratio of 1 suggests that the stock is trading at a fair value relative to its peers’ historical averages. However, this valuation has not translated into positive returns, as profits have declined by 62.6% over the past year.
Rexnord’s 52-week high was Rs.112.5, indicating a substantial decline of over 40% from that peak to the current low of Rs.66. This wide price range reflects the volatility and uncertainty surrounding the company’s near-term prospects.
Shareholding and Market Position
The majority shareholding in Rexnord Electronics & Controls Ltd remains with the promoters, maintaining a stable ownership structure. The company operates within the Industrial Manufacturing sector, which has faced mixed conditions amid broader economic fluctuations and sector-specific pressures.
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Summary of Key Metrics
To summarise, Rexnord Electronics & Controls Ltd’s current stock price of Rs.66 represents a 52-week low, reflecting a combination of subdued earnings, declining profitability, and relative underperformance against market benchmarks. The downgrade to a ‘Strong Sell’ rating by MarketsMOJO, accompanied by a low Mojo Score of 14.0, underscores the challenges faced by the company in reversing its recent trend.
While the stock’s valuation appears reasonable compared to peers, the significant drop in profits and negative returns over the past year highlight ongoing difficulties in delivering shareholder value. The stock’s position below all major moving averages further emphasises the prevailing bearish sentiment in the market.
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