Veejay Lakshmi Engineering Works Ltd Falls to 52-Week Low of Rs.42.01

Stock Price Movement and Market Context

On 16 Feb 2026, Veejay Lakshmi Engineering Works Ltd’s share price touched an intraday low of Rs.42.01, representing a steep fall of 12.11% from previous levels. The stock opened with a gap down of 3.77% and has been on a downward trajectory for two consecutive trading sessions, losing 5.23% over this period. This decline outpaced the sector’s performance, with the stock underperforming the Industrial Manufacturing sector by 4% today.

Trading activity has been somewhat erratic, with the stock not trading on one of the last 20 trading days, adding to volatility concerns. Additionally, the share price currently trades below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum.

In contrast, the broader market has shown resilience. The Sensex, after a negative start, rebounded to close 0.26% higher at 82,843.87, just 4% shy of its 52-week high of 86,159.02. Mega-cap stocks led the recovery, while the Sensex remains below its 50-day moving average, though the 50DMA itself is positioned above the 200DMA, indicating a mixed but cautiously optimistic market backdrop.

Financial Performance and Fundamental Assessment

Veejay Lakshmi Engineering Works Ltd’s financial performance has been under pressure, contributing to the stock’s weak showing. Over the past year, the stock has delivered a negative return of 35.12%, starkly contrasting with the Sensex’s positive 9.10% gain over the same period. The stock’s 52-week high was Rs.72.20, highlighting the extent of the recent decline.

The company’s long-term fundamentals remain subdued. Net sales have grown at a modest annual rate of 14.13% over the last five years, while operating profit growth has been limited to 7.72% annually. Despite this growth, the company has reported operating losses, which have weighed on its overall financial health.

Recent quarterly results further underscore challenges. The latest quarter saw net sales dip to Rs.15.98 crores, the lowest in recent periods, while the profit after tax (PAT) for the last six months stood at a negative Rs.3.39 crores, deteriorating by 22.53%. The company’s ability to service debt is constrained, with a Debt to EBITDA ratio of -1.00 times, indicating negative earnings before interest, taxes, depreciation, and amortisation.

Valuation and Risk Profile

The stock’s valuation metrics reflect its current risk profile. It is rated with a Mojo Score of 3.0 and assigned a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating on 3 Mar 2025. The Market Cap Grade stands at 4, indicating a relatively small market capitalisation within its sector.

Profitability has declined sharply, with profits falling by 68.2% over the past year. The company’s negative EBITDA further accentuates the risk, as it struggles to generate positive earnings from core operations. This has contributed to the stock’s underperformance relative to the BSE500 index over the last three years, one year, and three months.

Promoters remain the majority shareholders, maintaining control over the company’s strategic direction. However, the weak long-term growth prospects and limited ability to service debt continue to weigh on investor sentiment and share price performance.

Summary of Recent Trends

In the short term, the stock’s performance has been notably weak. The two-day consecutive decline and the gap down opening today highlight persistent selling pressure. The stock’s failure to sustain levels above key moving averages suggests that the downward trend remains intact.

Comparatively, the Sensex’s recovery and proximity to its 52-week high underscore the divergence between the broader market and Veejay Lakshmi Engineering Works Ltd’s share price trajectory. This gap emphasises the company’s relative underperformance within the Industrial Manufacturing sector and the wider market.

Overall, the stock’s current valuation and financial metrics reflect a cautious outlook, with the company facing multiple headwinds that have contributed to its 52-week low price point.

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