RTS Power Corporation Ltd Falls to 52-Week Low Amidst Continued Underperformance

Stock Price Movement and Market Context

The stock of RTS Power Corporation Ltd, operating within the Other Electrical Equipment sector, declined by 4.5% intraday to hit Rs.122.05, its lowest level in the past year. This drop followed two consecutive days of gains, signalling a reversal in short-term momentum. The share price underperformed its sector by 2.48% on the day, reflecting a broader weakness relative to peers.

Trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — the stock’s technical indicators suggest sustained downward pressure. This contrasts with the broader market, where the Sensex opened lower at 81,947.31, down 0.75%, but remained only 4.73% shy of its 52-week high of 86,159.02. The Sensex itself is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed signals for the overall market.

Financial Performance and Fundamental Metrics

RTS Power Corporation Ltd’s financial results have reflected subdued growth and profitability pressures. The company reported flat results for the six months ending September 2025, with a Profit After Tax (PAT) of Rs.2.44 crore, representing a decline of 47.97% compared to the previous period. Net sales also contracted by 21.68% to Rs.75.95 crore over the same timeframe.

Return on Capital Employed (ROCE) for the half-year stood at a low 2.67%, while the average Return on Equity (ROE) remains modest at 2.93%. These figures highlight the company’s limited ability to generate returns from its capital base. Additionally, the company’s capacity to service debt is constrained, with an average EBIT to interest coverage ratio of just 1.15, indicating tight margins for meeting interest obligations.

Long-Term and Recent Performance Trends

Over the past year, RTS Power Corporation Ltd’s stock has declined by 47.90%, significantly underperforming the Sensex, which gained 7.24% over the same period. This underperformance extends to longer timeframes as well, with the stock lagging the BSE500 index over the last three years, one year, and three months.

The 52-week high for the stock was Rs.260, indicating that the current price level represents a decline of more than 53% from its peak. Profitability has also deteriorated sharply, with profits falling by 80.2% over the past year, underscoring the challenges faced by the company in maintaining earnings growth.

Valuation and Shareholding Structure

Despite the weak financial performance, RTS Power Corporation Ltd’s valuation metrics suggest some degree of attractiveness. The company’s ROCE stands at 1.9%, and it has an enterprise value to capital employed ratio of 0.8, indicating that the stock is trading at a fair value relative to its capital base. This valuation is broadly in line with historical averages for its peer group within the Other Electrical Equipment sector.

The majority shareholding is held by promoters, which may provide some stability in ownership structure amid the stock’s price volatility.

Mojo Score and Market Sentiment

RTS Power Corporation Ltd currently holds a Mojo Score of 23.0, categorised as a Strong Sell. This represents a downgrade from its previous Sell rating as of 3 February 2025. The company’s market capitalisation grade is 4, reflecting its micro-cap status within the Other Electrical Equipment sector.

On the trading day in question, the stock declined by 1.76%, further indicating investor caution. The combination of weak financial metrics, subdued profitability, and technical indicators below key moving averages contribute to the prevailing market sentiment.

Summary of Key Metrics

To summarise, RTS Power Corporation Ltd’s key financial and market indicators are as follows:

• New 52-week low price: Rs.122.05


• One-year stock return: -47.90%


• Sensex one-year return: +7.24%


• Profit after tax (latest six months): Rs.2.44 crore, down 47.97%


• Net sales (latest six months): Rs.75.95 crore, down 21.68%


• Average ROE: 2.93%


• Average EBIT to interest coverage ratio: 1.15


• ROCE (half-year): 2.67%


• Enterprise value to capital employed: 0.8


• Mojo Grade: Strong Sell (Mojo Score 23.0)

The stock’s performance and financial indicators highlight the challenges faced by RTS Power Corporation Ltd in maintaining growth and profitability amid a competitive and evolving market environment.

Unlock special upgrade rates for a limited period. Start Saving Now →