Stock Performance and Market Context
On 21 Jan 2026, B N Rathi Securities Ltd’s share price slipped to Rs.14.9, the lowest level recorded in the past year. This decline comes after five consecutive days of losses, during which the stock has fallen by 6.58%. The day’s performance also saw the stock underperform its Non Banking Financial Company (NBFC) sector peers by 0.37%. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum.
In comparison, the Sensex opened lower at 81,794.65, down 385.82 points (-0.47%), and was trading at 81,908.39 (-0.33%) during the same session. The benchmark index has experienced a three-week consecutive decline, losing 4.49% over this period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed signals for the broader market.
Financial Performance and Valuation Metrics
The stock’s 52-week high was Rs.60.5, highlighting the extent of the recent depreciation. Over the past year, B N Rathi Securities Ltd has delivered a negative return of 73.20%, starkly contrasting with the Sensex’s positive 8.02% gain and the BSE500’s 6.35% return. This underperformance is underpinned by the company’s financial results, which have shown a decline over recent quarters.
The company has reported negative results for four consecutive quarters. Its Profit After Tax (PAT) for the latest six months stands at Rs.3.79 crore, reflecting a contraction of 49.87%. Similarly, Profit Before Tax excluding Other Income (PBT less OI) for the quarter is Rs.1.10 crore, down 53.59%. Operating cash flow for the year has also deteriorated, registering a negative Rs.22.63 crore, indicating cash utilisation pressures.
Despite these challenges, the company maintains a strong long-term fundamental profile, with an average Return on Equity (ROE) of 15.14%. The current ROE is 7.7, and the stock trades at an attractive Price to Book Value (P/BV) ratio of 0.9. However, it is notable that the stock is priced at a premium relative to its peers’ average historical valuations, which may reflect market expectations or structural factors within the NBFC sector.
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Shareholding and Dividend Yield
The majority shareholding in B N Rathi Securities Ltd is held by non-institutional investors, which may influence trading patterns and liquidity. The stock currently offers a dividend yield of 3.27%, which is relatively high given the prevailing share price, providing some income support to shareholders despite the price decline.
Comparative Market Performance
While the NBFC sector has faced headwinds, B N Rathi Securities Ltd’s performance has been notably weaker than the broader market and sector indices. The BSE500 index has generated a 6.35% return over the last year, whereas the stock’s returns have been deeply negative. This divergence highlights the specific pressures on the company’s earnings and market sentiment.
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Summary of Key Metrics
To summarise, B N Rathi Securities Ltd’s current market capitalisation is graded 4 on the MarketsMOJO scale, with an overall Mojo Score of 14.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 18 Feb 2025. The stock’s recent price action and financial results have contributed to this rating, reflecting the challenges faced by the company in maintaining profitability and market confidence.
The stock’s trading below all major moving averages and its sustained decline over the past year underscore the prevailing negative momentum. The company’s earnings contraction, negative cash flow, and underperformance relative to the Sensex and sector indices provide a comprehensive picture of the pressures weighing on the stock.
Conclusion
B N Rathi Securities Ltd’s fall to a 52-week low of Rs.14.9 marks a significant milestone in its recent market journey. The stock’s performance reflects a combination of subdued earnings, valuation pressures, and broader market trends affecting the NBFC sector. While the company retains some fundamental strengths, the current market environment and financial indicators have contributed to the sustained downtrend observed over the past year.
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