Stock Price Movement and Market Context
On 5 December 2025, ARC Finance's share price touched Rs.0.67, marking its lowest level in the past 52 weeks. This price point represents a sharp contrast to its 52-week high of Rs.2.25, indicating a substantial contraction in market value. The stock underperformed its sector peers today, with a day change of -2.86%, lagging the NBFC sector by approximately 4.05%. Furthermore, ARC Finance is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum.
In comparison, the broader market has shown resilience. The Sensex, after an initial negative opening, rebounded strongly to close at 85,583.60 points, up 0.37% on the day. It remains close to its 52-week high of 86,159.02, supported by gains in mega-cap stocks and a bullish alignment of its 50-day and 200-day moving averages. This divergence highlights the challenges faced by ARC Finance relative to the overall market environment.
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Financial Performance Overview
ARC Finance's financial metrics over the past year reveal considerable strain. The stock's one-year performance shows a decline of 69.23%, contrasting with the Sensex's positive return of 4.66% during the same period. This disparity underscores the company's challenges in maintaining growth and profitability.
Key indicators highlight subdued returns and profitability pressures. The average Return on Equity (ROE) stands at 2.52%, reflecting limited efficiency in generating shareholder returns. More notably, the company’s operating profit has shown a negative annual growth rate of 214.05%, signalling contraction in core earnings capacity.
Quarterly results for September 2025 further illustrate this trend. Profit Before Tax (PBT) excluding other income was recorded at Rs.0.17 crore, representing a decline of 96.28% compared to previous quarters. Additionally, the ROE for this period was negative at -2.2%, indicating losses relative to equity capital.
Valuation and Shareholding Structure
Despite the financial headwinds, ARC Finance's valuation metrics suggest a premium relative to its peers. The Price to Book Value ratio is approximately 0.6, which is considered elevated given the company's recent performance and negative returns. This premium valuation may reflect market expectations or structural factors within the NBFC sector.
The shareholding pattern is dominated by non-institutional investors, which may influence liquidity and trading dynamics. The absence of significant institutional holdings could affect market perception and price stability.
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Sector and Market Position
ARC Finance operates within the Non Banking Financial Company (NBFC) sector, a segment that has experienced varied performance across different players. While the broader market and mega-cap stocks have demonstrated strength, ARC Finance's stock price trajectory and financial indicators suggest it is facing headwinds that have impacted investor confidence and valuation.
The stock’s trading below all major moving averages indicates a sustained bearish trend, which contrasts with the Sensex’s bullish technical positioning. This divergence may reflect company-specific factors rather than sector-wide issues.
Summary of Key Metrics
To summarise, ARC Finance’s key financial and market data as of December 2025 include:
- 52-week low price: Rs.0.67
- 52-week high price: Rs.2.25
- One-year stock return: -69.23%
- Sensex one-year return: +4.66%
- Average Return on Equity (ROE): 2.52%
- Operating profit annual growth rate: -214.05%
- Quarterly PBT excluding other income: Rs.0.17 crore (down 96.28%)
- Price to Book Value ratio: 0.6
- Shareholding: Majority non-institutional
These figures collectively illustrate the challenges ARC Finance is currently navigating in terms of profitability, valuation, and market performance.
Market Outlook and Considerations
While the broader market environment remains positive, with the Sensex nearing its 52-week high and supported by strong mega-cap performance, ARC Finance’s stock price and financial indicators reflect a contrasting narrative. The company’s position below all key moving averages and its recent 52-week low highlight ongoing pressures that have influenced its market valuation.
Investors and market participants may continue to monitor ARC Finance’s financial disclosures and market movements closely, given the significant gap between its performance and that of the broader indices and sector peers.
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