Veejay Lakshmi Engineering Works Ltd Falls to 52-Week Low of Rs.42.1

Stock Price Movement and Volatility

The stock opened the day with a notable gap up of 9.87%, reaching an intraday high of Rs.50. However, it reversed course sharply to touch an intraday low of Rs.42.1, representing a decline of 7.49% from the opening price. This intraday volatility was substantial, with an 8.58% range calculated from the weighted average price. The day ended with a negative change of -3.32%, underperforming its sector by 4.1%.

Veejay Lakshmi Engineering Works Ltd has been on a downward trend for four consecutive trading sessions, accumulating a loss of 18.5% over this period. The stock currently trades below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bearish momentum.

Comparative Market Context

In contrast to the stock’s decline, the broader market has shown resilience. The Sensex opened higher at 84,177.51 points, gaining 597.11 points (0.71%) at the start of the day and was trading at 83,902.65 points (0.39%) during the session. The Sensex remains just 2.69% shy of its 52-week high of 86,159.02 points and has recorded a three-week consecutive rise, gaining 2.9% over this period. Mega-cap stocks have been the primary drivers of this market strength.

Long-Term Performance and Valuation

Over the past year, Veejay Lakshmi Engineering Works Ltd has delivered a negative return of 31.78%, significantly lagging the Sensex’s positive 7.78% return. The stock’s 52-week high was Rs.72.2, highlighting the extent of the recent decline. This underperformance extends beyond the last year, with the stock also trailing the BSE500 index over the last three years, one year, and three months.

Financial Health and Profitability Metrics

The company’s financial fundamentals remain under pressure. Its Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 3 Mar 2025. The Market Cap Grade is rated 4, reflecting a relatively modest market capitalisation.

Net sales for the quarter ending September 2025 were Rs.19.48 crores, marking a decline of 7.2% compared to the previous four-quarter average. Earnings per share (EPS) for the same period were negative at Rs.-3.45, the lowest recorded in recent quarters. Operating profit growth over the last five years has been subdued at 7.72% annually, while net sales grew at a moderate 14.13% per annum.

The company’s ability to service debt is constrained, with a Debt to EBITDA ratio of -1.00 times, indicating negative EBITDA and a challenging financial position. This negative EBITDA also contributes to the stock’s classification as risky relative to its historical valuation averages.

Recent Profitability and Returns

Profitability has deteriorated significantly, with profits falling by 68.2% over the past year. This decline in earnings has coincided with the stock’s negative return of 31.78% during the same period. The combination of shrinking profits and declining share price underscores the challenges faced by the company in both the near and long term.

Shareholding and Corporate Structure

The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. No changes in promoter shareholding have been reported recently.

Summary of Key Concerns

The stock’s fall to Rs.42.1 represents a new 52-week low, reflecting ongoing pressures on the company’s financial performance and market valuation. The combination of declining sales, negative EPS, and a challenging debt position has contributed to the stock’s weak momentum. Trading below all major moving averages further emphasises the current bearish sentiment.

Despite the broader market’s positive trend, Veejay Lakshmi Engineering Works Ltd’s share price has not participated in the rally, highlighting sector-specific or company-specific factors weighing on investor sentiment.

Technical and Market Positioning

The stock’s high intraday volatility and recent consecutive declines suggest heightened uncertainty among market participants. The gap-up opening followed by a sharp fall within the same session indicates a struggle to maintain upward momentum. This technical behaviour aligns with the company’s fundamental challenges and the Strong Sell rating assigned by MarketsMOJO.

Conclusion

Veejay Lakshmi Engineering Works Ltd’s decline to a 52-week low of Rs.42.1 on 9 Feb 2026 marks a significant point in its recent market journey. The stock’s performance over the past year and recent quarters reflects a combination of subdued growth, profitability pressures, and financial constraints. While the broader market has shown resilience, this stock continues to face headwinds that have weighed on its valuation and investor confidence.

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