RTS Power Corporation Ltd Falls to 52-Week Low of Rs.116.65

Stock Price Movement and Market Context

The stock of RTS Power Corporation Ltd (Stock ID: 850962) recorded a fresh 52-week low at Rs.116.65 on 27 Feb 2026. Despite this, the stock outperformed its sector by 0.88% today and has posted gains over the last two consecutive days, rising by 1.31% in that period. However, it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure over multiple time frames.

In comparison, the broader Sensex index opened flat but declined by 450.04 points (-0.58%) to close at 81,770.44, trading below its 50-day moving average. The S&P Bse Oil Gas index, by contrast, hit a new 52-week high today, highlighting sectoral divergences within the market.

Long-Term and Recent Performance Trends

Over the past year, RTS Power Corporation Ltd has delivered a negative return of -36.55%, substantially underperforming the Sensex, which gained 9.56% over the same period. The stock’s 52-week high was Rs.224.45, underscoring the steep decline in value. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over the last three years, one year, and three months.

Financial Metrics and Profitability Analysis

The company’s financial indicators reveal challenges in generating returns. RTS Power Corporation Ltd’s average Return on Capital Employed (ROCE) stands at a low 2.69%, reflecting limited profitability relative to the capital invested. The half-year ROCE is even lower at 2.67%, signalling subdued efficiency in capital utilisation.

Quarterly net sales for December 2025 were Rs.36.04 crores, representing a 20.0% decline compared to the previous four-quarter average. Additionally, non-operating income accounted for 90.38% of the Profit Before Tax (PBT) in the quarter, indicating that core business earnings remain weak.

Capital Structure and Valuation

RTS Power Corporation Ltd maintains a low average debt-to-equity ratio of 0.07 times, suggesting a conservative capital structure with limited leverage. The company’s valuation metrics include an Enterprise Value to Capital Employed ratio of 0.8, which is considered attractive relative to peers’ historical averages. Despite this, the stock’s profitability has declined sharply, with profits falling by 45.9% over the past year.

Mojo Score and Ratings Update

The company’s Mojo Score currently stands at 37.0, with a Mojo Grade of Sell as of 16 Feb 2026, an upgrade from a previous Strong Sell rating. This reflects a slight improvement in the company’s overall assessment but remains indicative of caution. The Market Capitalisation Grade is rated 4, suggesting a mid-tier market cap classification.

Shareholding and Sector Placement

Promoters remain the majority shareholders of RTS Power Corporation Ltd, maintaining control over the company’s strategic direction. The firm operates within the Other Electrical Equipment industry and sector, a segment that has seen mixed performance amid evolving market conditions.

Summary of Key Concerns

The stock’s decline to a new 52-week low is underpinned by a combination of subdued sales, low profitability metrics, and underwhelming returns relative to the broader market. The heavy reliance on non-operating income for quarterly profits further highlights the challenges in core business performance. While the company’s low leverage and attractive valuation ratios offer some balance, the overall financial health and market performance remain areas of concern.

Comparative Market Performance

RTS Power Corporation Ltd’s stock performance contrasts sharply with the broader market indices and sectoral peers. While the Sensex has shown resilience with a 9.56% gain over the past year, RTS Power’s negative returns and declining profitability metrics place it in a challenging position within the Other Electrical Equipment sector. The stock’s trading below all major moving averages further emphasises the prevailing downward momentum.

Conclusion

The fall of RTS Power Corporation Ltd to its 52-week low of Rs.116.65 reflects a confluence of factors including declining sales, low returns on capital, and a reliance on non-operating income for profitability. Despite a conservative debt profile and valuation metrics that suggest fair pricing, the company’s financial performance and market standing have weakened over the past year. The recent upgrade in Mojo Grade from Strong Sell to Sell indicates some improvement, yet the overall outlook remains cautious given the sustained underperformance relative to benchmarks and peers.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today