Stock Price Movement and Market Context
On 12 December 2025, ARC Finance's share price touched Rs.0.64, marking its lowest level in the last 52 weeks. This price point represents a sharp fall from its 52-week high of Rs.2.05, indicating a decline of approximately 68.8% over the period. The stock underperformed its sector by 3.7% on the day it hit this low, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent downward trend highlights the stock's current weakness relative to its historical price levels.
In contrast, the broader market environment has shown resilience. The Sensex opened 232.90 points higher and was trading at 85,257.76, up 0.52% on the day. The index remains close to its 52-week high of 86,159.02, just 1.06% away, supported by bullish moving averages where the 50-day moving average is above the 200-day moving average. Mid-cap stocks led the market rally with the BSE Mid Cap index gaining 0.79%, underscoring a divergence between ARC Finance’s performance and the overall market trend.
Strong fundamentals, steady climb upward! This Large Cap from Telecommunication sector earned its Reliable Performer badge through consistent execution. Safety meets solid returns here!
- - Reliable Performer certified
- - Consistent execution proven
- - Large Cap safety pick
Financial Performance Overview
ARC Finance’s financial indicators over the past year reveal considerable challenges. The company’s one-year stock return stands at -67.16%, a stark contrast to the Sensex’s positive return of 4.84% during the same period. This disparity reflects the company’s subdued financial health relative to the broader market.
Return on Equity (ROE), a key measure of profitability, averaged 2.52%, indicating limited efficiency in generating returns from shareholders’ equity. Operating profit trends further illustrate difficulties, with an annualised decline rate of 214.05%, signalling contraction in core earnings capacity.
Quarterly results for September 2025 showed a Profit Before Tax (PBT) less Other Income of Rs.0.17 crore, which fell by 96.28% compared to previous periods. This near-flat result underscores the absence of significant earnings growth in recent quarters.
Valuation and Risk Considerations
The stock’s valuation metrics suggest elevated risk levels. ARC Finance’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, a factor that contributes to its classification as a risky investment relative to its historical valuation averages. Over the past year, profits have declined by 133.5%, reinforcing concerns about the company’s earnings stability.
Shareholding patterns indicate that the majority of shares are held by non-institutional investors, which may affect liquidity and market dynamics for the stock.
Is ARC Finance your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Sector and Industry Context
ARC Finance operates within the Non Banking Financial Company (NBFC) sector, which has experienced varied performance across different players. While some NBFCs have shown resilience and growth, ARC Finance’s financial metrics and stock price trajectory indicate a divergence from sector trends. The company’s market capitalisation grade is relatively low at 4, reflecting its smaller size and market presence compared to larger NBFC peers.
Summary of Key Metrics
To summarise, ARC Finance’s stock price at Rs.0.64 represents a significant decline from its 52-week high of Rs.2.05. The company’s financial indicators, including a low average ROE of 2.52%, a steep annualised decline in operating profit, and a near-flat quarterly PBT less other income, highlight ongoing challenges. Negative EBITDA and a profit fall of 133.5% over the past year further illustrate the company’s current financial position. These factors, combined with the stock trading below all major moving averages, contribute to the recent low price level.
Meanwhile, the broader market environment remains positive, with the Sensex near its 52-week high and mid-cap stocks leading gains. This contrast emphasises the specific difficulties faced by ARC Finance within its sector and the wider market.
Only for Rs. 14,999 - Get Access to 2 Years + 6 Months of All Premium Features on MarketsMojo. As low as ₹500/month! Claim 83% OFF →
