Veejay Lakshmi Engineering Works Ltd Falls to 52-Week Low of Rs.38.5

Intraday Price Movement and Volatility

On 20 Feb 2026, Veejay Lakshmi Engineering Works Ltd opened with a gap down of 3.75%, trading at Rs.38.5, which also represented the day’s low. Despite touching an intraday high of Rs.43, a 7.5% rise from the low, the stock closed near its lowest levels, underscoring persistent selling pressure. The stock exhibited high volatility with an intraday weighted average price volatility of 5.52%, indicating significant price fluctuations throughout the trading day.

The stock’s day change was recorded at a positive 4.50%, outperforming the Industrial Manufacturing sector by 5.02%. However, this relative outperformance comes against a backdrop of a sharp decline from its 52-week high of Rs.72.2, representing a drop of approximately 46.6% over the past year.

Technical Indicators and Moving Averages

Technically, Veejay Lakshmi Engineering Works Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning signals a sustained bearish trend and suggests that the stock has yet to find a stable support level. The persistent trading below these averages often reflects weak investor sentiment and a lack of upward momentum in the near term.

Comparative Market Context

While Veejay Lakshmi Engineering Works Ltd has struggled, the broader market has shown resilience. The Sensex, after an initial negative opening down by 225.65 points, rebounded sharply by 565.59 points to close at 82,838.08, a gain of 0.41%. The index remains just 4.01% below its 52-week high of 86,159.02. Mega-cap stocks have been the primary drivers of this recovery, contrasting with the micro-cap and small-cap segments where Veejay Lakshmi operates.

Long-Term Performance and Financial Health

Over the past year, Veejay Lakshmi Engineering Works Ltd has delivered a negative return of 33.65%, significantly underperforming the Sensex’s positive 9.38% gain. This underperformance extends over longer periods as well, with the stock lagging the BSE500 index across one-year, three-year, and three-month timeframes.

Financially, the company’s fundamentals have been under pressure. Net sales have grown at a modest compound annual growth rate (CAGR) of 11.04% over the last five years, while operating profit growth has been limited to 2.96% annually. The latest quarterly net sales figure stood at Rs.15.98 crores, marking the lowest quarterly sales in recent periods. The company reported a net loss after tax (PAT) of Rs.3.39 crores in the latest six-month period, reflecting a decline of 22.53% compared to previous results.

Debt and Profitability Concerns

One of the critical concerns is the company’s debt servicing capability. The debt to EBITDA ratio is currently at -1.00 times, indicating negative EBITDA and a challenging environment for managing financial obligations. The negative EBITDA also highlights the company’s inability to generate sufficient earnings before interest, taxes, depreciation, and amortisation, which is a key indicator of operational profitability.

Profitability has deteriorated sharply, with profits falling by 411% over the past year. This steep decline in earnings has contributed to the stock’s weak valuation and the downgrade in its Mojo Grade from Sell to Strong Sell as of 3 March 2025. The current Mojo Score stands at 3.0, reinforcing the cautious stance on the stock’s financial health and outlook.

Shareholding and Market Capitalisation

The majority shareholding remains with the company’s promoters, which can be a stabilising factor in terms of ownership continuity. The stock holds a Market Cap Grade of 4, indicating a relatively small market capitalisation within its sector and peer group. This micro-cap status often correlates with higher volatility and sensitivity to company-specific developments.

Summary of Key Metrics

To encapsulate, Veejay Lakshmi Engineering Works Ltd’s stock has reached a new 52-week low of Rs.38.5, reflecting ongoing challenges in financial performance and market valuation. The stock’s high volatility, trading below all major moving averages, and negative profitability metrics underscore the difficulties faced by the company. Despite a sector that has shown some resilience, the company’s returns and earnings have lagged significantly.

While the promoters maintain majority ownership, the company’s weak long-term fundamental strength and limited growth in operating profit have contributed to its current market position. The downgrade to a Strong Sell Mojo Grade and the negative EBITDA further highlight the cautious environment surrounding this stock.

Investors and market participants will continue to monitor the stock’s price action and financial disclosures closely as it navigates this challenging phase within the Industrial Manufacturing sector.

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