Highlights

• Rajvir Industries Ltd shares dropped 23.50% over five years, last trading at ₹7.65 amid severe stress.
• Weak financials, liquidity crunch, high leverage, and export slowdown amplified selling pressure, signaling fundamental distress.
• Technical breakdown, low float, and absence of support suggest elevated downside risk and sharp volatility potential.

Rajvir Industries witnessed a dramatic -23.50% past 5 years, with a last traded price of ₹ 7.65, 16 Feb 2026 effectively eroding its market value in the session.

Such extreme price action typically signals severe fundamental distress or regulatory developments.

Reason for Decline

The sharp collapse may be attributed to:

• Severe liquidity crunch or trading suspension trigger
  • Corporate restructuring, delisting, or insolvency proceedings
  • Debt default concerns
  • Extremely low float leading to circuit-based crash

Textile sector companies have been under stress due to export slowdown and working capital pressures, which may have amplified selling sentiment.

Financial Overview

Rajvir Industries Limited reported weak financial performance for the quarter ended 31 December 2020, with results approved on 12 February 2021. During the December 2020 quarter, the company recorded revenue of ₹94.51 lakhs and a net loss of ₹783.27 lakhs. For the nine months ended 31 December 2020, revenue stood at ₹593.84 lakhs, while the net loss widened to ₹2,558.51 lakhs.

Operating in the textile manufacturing sector, the company has historically faced volatile cotton prices and export cycles. Revenues have fluctuated, EBITDA margins remained compressed due to rising input costs and pricing pressure, while high leverage and interest costs have strained profitability, with cash flow stress weighing on investor confidence.

Technical Outlook
The stock has undergone a clear structural breakdown, indicating a significant shift in its price pattern and overall trend. With key technical levels breached, meaningful support is currently absent, making downside risks difficult to assess.

On the upside, resistance is likely to emerge near the previous trading band, where selling pressure could reappear. Additionally, liquidity risk remains extremely high, which may result in sharp price swings and increased volatility, especially during periods of low trading activity.

Risks
The stock carries several significant risks that investors should carefully consider. There is a potential insolvency risk, which could threaten the company’s ability to meet its financial obligations. Regulatory challenges may also arise, including the possibility of suspension from trading or operational restrictions. Furthermore, investors face the danger of capital erosion, where the value of their investment declines over time. In extreme scenarios, these factors could lead to permanent value destruction, resulting in a total or substantial loss of invested funds.

Rajvir Industries has seen a 23.50% decline over five years, with last price ₹7.65. Struggling with weak financials, high debt, and export pressures, the stock faces liquidity challenges and technical breakdown. Investors should note potential insolvency risk, regulatory hurdles, and extreme volatility, making RAJVIR a high-risk proposition in the textile sector.

FAQs

1. Why has RAJVIR fallen sharply?
   Weak financial performance, export slowdown, high leverage, liquidity issues, and sector stress have driven steep declines.
2. What are the key risks for investors?
   Potential insolvency, regulatory restrictions, capital erosion, and low liquidity increase volatility and downside risk.
3. Can the stock recover in the near term?
   Recovery is uncertain due to financial stress, technical breakdown, and lack of meaningful support levels.