Stock Price Movement and Market Context
The stock has been on a declining streak for the past three consecutive trading sessions, registering a cumulative loss of 2.97% during this period. Today’s fall of 2.54% further extended this negative trend, with the share price slipping to Rs.14, the lowest level seen in the past year. This decline contrasts sharply with the broader market, where the Sensex, despite opening 265.21 points lower, is currently trading at 83,915.99, down by only 0.38%. The Sensex remains within 2.67% of its 52-week high of 86,159.02 and has recorded a 2.92% gain over the last three weeks.
B N Rathi Securities Ltd’s performance has notably lagged behind the benchmark, with a one-year return of -52.00%, compared to the Sensex’s positive 10.19% over the same period. The stock’s 52-week high was Rs.42.95, highlighting the steep depreciation in value over the past year.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. Additionally, it underperformed its sector by 1.72% today, reflecting broader challenges within the NBFC space.
Financial Performance and Profitability Metrics
Recent financial disclosures reveal a continuation of subdued profitability. The company has reported negative results for four consecutive quarters, with the latest six-month Profit After Tax (PAT) standing at Rs.3.79 crores, representing a decline of 49.87% year-on-year. Profit Before Tax excluding other income (PBT less OI) for the quarter was Rs.1.10 crore, down 53.59% compared to the previous period.
Operating cash flow for the year has also deteriorated, registering a negative Rs.22.63 crores, indicating cash outflows from core business activities. This cash flow position adds pressure on the company’s liquidity and operational flexibility.
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Valuation and Fundamental Strength
Despite the recent price decline, B N Rathi Securities Ltd maintains certain fundamental strengths. The company’s average Return on Equity (ROE) over the long term stands at a respectable 15.14%, reflecting its ability to generate shareholder returns historically. The current ROE is 7.7%, which, while lower than the average, remains positive.
The stock is trading at a Price to Book Value (P/BV) of 0.9, suggesting an attractive valuation relative to its book value and peers’ historical averages. Additionally, the stock offers a dividend yield of 3.32% at the current price level, providing some income return to shareholders amid the price weakness.
Shareholding Pattern and Market Grade
The majority of the company’s shares are held by non-institutional investors, indicating a dispersed ownership structure. From a market grading perspective, the company’s Mojo Score has deteriorated to 14.0, with a current Mojo Grade of Strong Sell, upgraded from Sell on 18 February 2025. The Market Cap Grade stands at 4, reflecting the company’s relatively modest market capitalisation within its sector.
Comparative Performance and Sectoral Position
Over the last three years, B N Rathi Securities Ltd has underperformed the BSE500 index across multiple time frames, including the last three months and one year. This underperformance highlights persistent challenges in maintaining competitive growth and profitability within the NBFC sector.
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Summary of Key Metrics
To summarise, B N Rathi Securities Ltd’s stock has declined sharply to Rs.14, its lowest level in 52 weeks, reflecting a combination of subdued earnings, negative cash flows, and sustained underperformance relative to the broader market and sector peers. The company’s financial results over recent quarters have shown contraction in profitability, with PAT and PBT less other income falling by nearly half year-on-year. The stock’s valuation metrics indicate a fair price relative to book value, and the dividend yield remains relatively high at 3.32%.
While the broader market indices have shown resilience and modest gains over recent weeks, B N Rathi Securities Ltd continues to face headwinds that have weighed on its share price and investor sentiment.
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