Stock Price Movement and Market Context
On 17 Dec 2025, ARC Finance's share price touched Rs.0.63, marking its lowest level in the past 52 weeks. This represents a sharp fall from its 52-week high of Rs.1.88. The stock underperformed its sector by 1.1% on the day, with a day change of -1.54%. Notably, ARC Finance is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained downward momentum.
In contrast, the broader market index, Sensex, opened 176.40 points higher but later declined by 296.61 points, closing at 84,559.65, down 0.14%. The Sensex remains close to its 52-week high of 86,159.02, trading 1.89% below that peak. Furthermore, the Sensex is positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend in the market.
Financial Performance Over the Past Year
ARC Finance's one-year stock performance shows a decline of 64.25%, contrasting with the Sensex's gain of 4.80% over the same period. This divergence highlights the challenges faced by the company relative to the broader market.
The company’s long-term financial metrics reveal subdued returns. The average Return on Equity (ROE) stands at 2.52%, reflecting limited profitability relative to shareholder equity. Operating profit has shown a negative annual growth rate of 214.05%, indicating contraction in core earnings over time.
Quarterly results for September 2025 further illustrate the financial strain. Profit Before Tax (PBT) excluding other income was reported at Rs.0.17 crore, representing a decline of 96.28% compared to the previous period. Additionally, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, contributing to a perception of elevated risk in valuation terms.
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Valuation and Shareholding Structure
ARC Finance is considered to be trading at a risky valuation compared to its historical averages. The stock’s profits have declined by 133.5% over the past year, underscoring the financial pressures faced by the company. This has contributed to the stock’s significant price depreciation.
The majority of ARC Finance’s shares are held by non-institutional investors, which may influence trading dynamics and liquidity. The company operates within the NBFC sector, which has experienced varied performance across different entities in recent times.
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Sector and Market Comparison
Within the NBFC sector, ARC Finance’s performance contrasts with some peers that have maintained steadier financial metrics and stock price levels. The sector itself has experienced mixed results, with certain companies benefiting from improving credit conditions and regulatory clarity, while others face headwinds from asset quality concerns and capital constraints.
Despite the broader market’s positive technical indicators, ARC Finance’s stock remains under pressure, reflecting company-specific factors rather than sector-wide trends. The stock’s position below all major moving averages signals a lack of upward momentum in the near term.
Summary of Key Financial Indicators
To summarise, ARC Finance’s recent stock price decline to Rs.0.63 is accompanied by several financial indicators that highlight challenges:
- One-year stock return of -64.25% versus Sensex’s 4.80% gain
- Average Return on Equity of 2.52%
- Operating profit annual growth rate of -214.05%
- Quarterly PBT excluding other income at Rs.0.17 crore, down 96.28%
- Negative EBITDA contributing to elevated valuation risk
- Trading below all key moving averages (5, 20, 50, 100, 200 days)
These factors collectively provide context for the stock’s current valuation and price behaviour.
Market Sentiment and Trading Dynamics
While the Sensex shows resilience near its 52-week high and maintains bullish moving average alignments, ARC Finance’s stock price movement diverges notably. The stock’s underperformance relative to its sector and the broader market reflects company-specific financial trends and investor sentiment.
The presence of predominantly non-institutional shareholders may also affect trading volumes and price stability, potentially contributing to the stock’s volatility.
Conclusion
ARC Finance’s stock reaching a 52-week low of Rs.0.63 marks a significant milestone in its recent trading history. The decline is underpinned by subdued financial results, including low profitability metrics, negative growth rates in operating profit, and negative EBITDA. These elements have influenced the stock’s valuation and trading below all major moving averages.
In contrast to the broader market’s generally positive technical indicators, ARC Finance’s performance highlights the challenges faced by certain NBFCs in maintaining financial stability and investor confidence.
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