Stock Performance and Market Context
The stock of RR Metalmakers India Ltd (Stock ID: 738549) declined by 1.17% today, underperforming its sector by 1.2%. This new low of Rs.23.8 marks a significant drop from its 52-week high of Rs.52.5, representing a decline of over 54% from the peak price within the last year. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In comparison, the broader market has shown resilience. The Sensex, after a flat opening with a minor dip of 28.13 points, fell by 402.46 points to close at 81,818.02, a 0.52% decline. Notably, the Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating mixed signals for the broader market trend.
Over the past year, RR Metalmakers India Ltd has underperformed significantly, delivering a negative return of 38.59%, while the Sensex gained 9.69%. Furthermore, the BSE500 index generated a 14.21% return over the same period, highlighting the stock’s relative weakness within the market.
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Financial Performance and Credit Metrics
RR Metalmakers India Ltd’s financial indicators reveal ongoing pressures. The company reported a negative profit after tax (PAT) of Rs. -3.81 crores in the most recent quarter, marking one of its lowest quarterly results. The return on capital employed (ROCE) for the half-year period stands at 17.55%, which is considered low relative to industry standards.
Additionally, the company’s debt servicing capacity remains constrained, with a high Debt to EBITDA ratio of 5.79 times. This elevated leverage ratio indicates a significant burden on earnings before interest, taxes, depreciation, and amortisation to cover debt obligations. The debtor turnover ratio for the half-year is also low at 1.89 times, suggesting slower collection cycles and potential liquidity concerns.
These financial metrics contribute to the company’s current Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 6 February 2026. The Mojo Score stands at 3.0, reflecting weak long-term fundamental strength and increased risk factors.
Valuation and Risk Considerations
The stock is trading at valuations that are considered risky compared to its historical averages. Over the past year, profits have declined sharply by 335.7%, exacerbating concerns about the company’s earnings stability. This deterioration in profitability has weighed heavily on investor sentiment and contributed to the stock’s downward trajectory.
Despite the broader market’s positive returns, RR Metalmakers India Ltd has failed to keep pace, underperforming both the Sensex and the BSE500 index. The company’s market capitalisation grade is rated 4, indicating a relatively small market cap within its sector, which may affect liquidity and trading volumes.
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Shareholding and Sectoral Position
The majority shareholding in RR Metalmakers India Ltd remains with the promoters, maintaining a concentrated ownership structure. The company operates within the Non - Ferrous Metals industry and sector, which has experienced mixed performance amid fluctuating commodity prices and global demand dynamics.
While the sector has seen some recovery phases, RR Metalmakers India Ltd’s stock has not mirrored these trends, reflecting company-specific challenges and financial constraints. The stock’s current position below all major moving averages further underscores the prevailing bearish sentiment.
Summary of Key Metrics
To summarise, RR Metalmakers India Ltd’s stock has reached a new 52-week low of Rs.23.8, down from a high of Rs.52.5 in the past year. The company’s financial results show a negative PAT of Rs. -3.81 crores, a low ROCE of 17.55%, and a high Debt to EBITDA ratio of 5.79 times. The stock’s Mojo Grade is Strong Sell with a score of 3.0, reflecting weak fundamentals and elevated risk. Over the last year, the stock has declined by 38.59%, significantly underperforming the Sensex and BSE500 indices.
These factors collectively illustrate the challenges faced by RR Metalmakers India Ltd in maintaining its market valuation and financial health amid a competitive and volatile sector environment.
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