Recent Price Movement and Market Context
The stock has underperformed notably, falling by 1.21% on the day and lagging its sector by 1.06%. Over the past four consecutive trading days, Rupa & Company Ltd has recorded a cumulative loss of 5.54%, signalling persistent selling pressure. The current price of Rs.150 stands well below its 52-week high of Rs.241, highlighting a steep decline of approximately 37.8% from the peak.
Technical indicators reinforce this bearish trend, with the stock trading below all key moving averages – the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness suggests limited short-term momentum and a lack of immediate technical support.
On a broader scale, the Sensex has also experienced a negative phase, opening 385.82 points lower and currently trading at 81,620.69, down 0.68%. The benchmark index is below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying resilience. However, the Sensex has declined by 4.83% over the last three weeks, reflecting a cautious market environment.
Financial Performance and Profitability Trends
Rupa & Company Ltd’s financial results have contributed to the subdued sentiment. The company reported a Profit Before Tax (PBT) excluding other income of Rs.13.95 crore for the quarter ended September 2025, representing a sharp decline of 29.62% compared to the previous period. Correspondingly, the Profit After Tax (PAT) stood at Rs.14.50 crore, down 21.4% year-on-year.
Over the last five years, the company’s operating profit has contracted at an annualised rate of 5.75%, indicating challenges in sustaining growth. This trend has weighed on the stock’s valuation and investor perception.
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Institutional Holding and Market Participation
Institutional investors have reduced their stake in Rupa & Company Ltd by 0.55% over the previous quarter, now collectively holding 4.28% of the company’s shares. This decline in institutional participation is notable given these investors’ typically rigorous fundamental analysis and resource advantages compared to retail investors.
The stock’s performance relative to broader benchmarks has been consistently weak. Over the past year, Rupa & Company Ltd has delivered a negative return of 35.48%, starkly contrasting with the Sensex’s positive 7.60% gain. Furthermore, the stock has underperformed the BSE500 index in each of the last three annual periods, underscoring persistent relative weakness.
Valuation and Financial Health Metrics
Despite the challenges, certain financial metrics indicate a degree of stability. The company maintains a low Debt to EBITDA ratio of 0.73 times, reflecting a manageable debt burden and a strong ability to service its obligations. Return on Equity (ROE) stands at 7.5%, which, while modest, suggests some level of profitability.
Valuation-wise, the stock trades at a Price to Book Value of 1.2, indicating an attractive discount relative to its peers’ historical averages. This valuation discount is consistent with the stock’s recent performance and earnings contraction, as profits have declined by 1.5% over the past year.
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Mojo Score and Analyst Ratings
Rupa & Company Ltd currently holds a Mojo Score of 28.0, categorised as a Strong Sell. This rating was upgraded from Sell on 11 Nov 2025, reflecting a deterioration in the company’s outlook and financial metrics. The Market Cap Grade stands at 3, indicating a relatively modest market capitalisation within its sector.
The downgrade to Strong Sell aligns with the company’s declining profitability, reduced institutional interest, and consistent underperformance against benchmarks. These factors collectively contribute to the cautious stance reflected in the rating.
Summary of Key Performance Indicators
To summarise, Rupa & Company Ltd’s stock has reached a new 52-week low of Rs.150, following a sustained period of decline. The stock’s underperformance is mirrored by weak quarterly earnings, a negative trend in operating profit growth, and diminished institutional participation. While the company maintains a sound debt profile and attractive valuation metrics, these have not been sufficient to offset the broader challenges faced.
The broader market environment, with the Sensex also experiencing a three-week losing streak, adds to the subdued sentiment. The stock’s technical positioning below all major moving averages further emphasises the current downtrend.
Investors and market participants will continue to monitor the company’s financial disclosures and market developments closely as the stock navigates this challenging phase.
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