Key Events This Week
16 Feb: Stock opens at Rs.124.20, down 1.70% amid cautious market mood
17 Feb: Quality grade upgraded from strong sell to sell, signalling mixed fundamentals
19 Feb: Technical indicators turn bearish as stock dips to Rs.122.10
20 Feb: Week closes at Rs.123.90, marginal recovery but still below opening price
16 February 2026: Week Opens with a Decline Amid Mixed Market Sentiment
RTS Power Corporation Ltd began the week at Rs.124.20, down 1.70% from the previous close of Rs.126.35. This decline occurred despite the Sensex gaining 0.70% to close at 36,787.89, signalling a divergence between the stock’s performance and broader market optimism. The relatively low trading volume of 3,462 shares suggested subdued investor interest, possibly reflecting caution ahead of upcoming fundamental updates.
17 February 2026: Quality Grade Upgrade Counters Bearish Price Action
On 17 February, RTS Power’s quality grade was upgraded from a strong sell to a sell rating by MarketsMOJO, reflecting a nuanced improvement in business fundamentals. The Mojo Score rose to 37.0, driven by steady sales growth averaging 17.64% annually and EBIT growth of 23.07% over five years. However, profitability ratios remained subdued, with ROE at 2.93% and ROCE at 2.48%, indicating ongoing operational challenges.
The stock price closed at Rs.122.65, down 1.25% on the day, underperforming the Sensex’s 0.32% gain. Elevated debt metrics, including a debt to EBITDA ratio of 4.46 and tight interest coverage of 1.32, continued to weigh on sentiment. The company’s flat quarterly performance and reliance on non-operating income for profits further tempered enthusiasm despite the quality upgrade.
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18 February 2026: Modest Recovery Amid Mixed Signals
The stock rebounded slightly to close at Rs.124.10, gaining 1.18% on the day, while the Sensex rose 0.43% to 37,062.35. This uptick was supported by improved operational metrics highlighted in the quality upgrade, but volumes remained moderate at 4,059 shares. Despite the recovery, the stock price remained well below its 52-week high of Rs.224.45, underscoring persistent investor caution.
19 February 2026: Technical Indicators Turn Bearish as Stock Declines
On 19 February, RTS Power’s price slipped to Rs.122.10, down 1.61%, underperforming the Sensex which fell 1.45% to 36,523.88. Technical analysis revealed a shift to bearish momentum, with the Moving Average Convergence Divergence (MACD) and Know Sure Thing (KST) indicators signalling selling pressure on weekly and monthly charts. The Relative Strength Index (RSI) showed no clear weekly signal, but Bollinger Bands suggested mild bearishness.
These technical weaknesses compounded concerns over the company’s flat quarterly results and low profitability, reinforcing a cautious outlook despite the recent quality grade upgrade.
20 February 2026: Week Closes with Slight Recovery but Underperformance Persists
The week ended with RTS Power closing at Rs.123.90, up 1.47% on the day but still down 1.94% for the week. The Sensex gained 0.41% to 36,674.32, highlighting the stock’s relative weakness. Trading volume was low at 1,530 shares, reflecting limited buying interest. The stock’s inability to sustain gains amid bearish technicals and subdued fundamentals suggests ongoing challenges ahead.
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-16 | Rs.124.20 | -1.70% | 36,787.89 | +0.70% |
| 2026-02-17 | Rs.122.65 | -1.25% | 36,904.38 | +0.32% |
| 2026-02-18 | Rs.124.10 | +1.18% | 37,062.35 | +0.43% |
| 2026-02-19 | Rs.122.10 | -1.61% | 36,523.88 | -1.45% |
| 2026-02-20 | Rs.123.90 | +1.47% | 36,674.32 | +0.41% |
Key Takeaways
Positive Signals: RTS Power Corporation Ltd’s upgrade from a strong sell to a sell rating reflects modest improvements in sales and EBIT growth, with a five-year sales CAGR of 17.64% and EBIT growth of 23.07%. The company’s low net debt to equity ratio of 0.07 indicates conservative leverage, and its valuation remains attractive relative to peers.
Cautionary Signals: Despite growth, profitability remains weak with ROE at 2.93% and ROCE at 2.48%, well below industry averages. Elevated debt to EBITDA ratio of 4.46 and tight interest coverage of 1.32 raise concerns about financial flexibility. Technical indicators have turned bearish, and recent quarterly results showed flat sales and heavy reliance on non-operating income, signalling operational challenges.
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Conclusion
RTS Power Corporation Ltd’s performance over the week ending 20 February 2026 was marked by a 1.94% decline in share price, underperforming the Sensex’s 0.39% gain. The upgrade in quality grade to a sell rating reflects incremental improvements in business fundamentals, particularly in sales and EBIT growth. However, persistent low profitability, elevated leverage ratios, and bearish technical indicators continue to weigh on the stock’s outlook.
Investors should remain cautious given the company’s flat recent financial results and reliance on non-operating income for profitability. While the long-term growth trajectory remains positive, near-term risks from operational inefficiencies and technical weakness suggest that RTS Power Corporation Ltd faces significant challenges before a more favourable outlook can be established.
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