Recent Price Movement and Market Context
On 21 Jan 2026, Emerald Finance Ltd’s stock price fell sharply, hitting an intraday low of Rs.64, representing a 7.42% drop during the trading session. This decline contributed to an overall day change of -4.02%, underperforming its sector by 4.67%. The stock has now recorded losses for three consecutive trading days, cumulatively falling by 18.68% over this period.
The broader market environment has also been challenging. The Sensex opened 385.82 points lower and was trading at 81,623.64 by midday, down 0.68%. The index has been on a three-week losing streak, declining 4.83% in total. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying resilience despite recent weakness.
Emerald Finance’s share price is currently below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained bearish momentum. The stock’s 52-week high was Rs.162.20, highlighting the extent of the recent decline.
Financial Performance and Valuation Metrics
Over the past year, Emerald Finance Ltd has underperformed significantly, delivering a negative return of 56.07%, in stark contrast to the Sensex’s positive 7.57% return and the BSE500’s 5.78% gain. This divergence underscores the stock’s relative weakness within the broader market and its sector.
The company’s long-term fundamental strength remains subdued, with an average Return on Equity (ROE) of 8.90%. This metric reflects moderate profitability relative to shareholder equity, which has contributed to the cautious market sentiment surrounding the stock.
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Quarterly Results and Growth Indicators
Despite the share price decline, Emerald Finance Ltd has reported positive quarterly results for seven consecutive quarters. The latest quarter ending December 2025 showed net sales reaching a high of Rs.7.80 crores, with PBDIT (Profit Before Depreciation, Interest and Taxes) at Rs.6.03 crores and PBT less other income at Rs.5.34 crores, all marking the highest levels recorded by the company.
Net sales grew by 13.04% in the latest quarter, signalling steady top-line expansion. The company’s ROE for the recent period improved to 13.1%, which is a more attractive figure compared to its historical average. Additionally, the stock trades at a Price to Book Value ratio of 2.6, which is considered fair relative to its peers’ average historical valuations.
Profit growth over the past year has been robust, with an 82.4% increase in profits despite the significant share price decline. The company’s PEG ratio stands at 0.2, indicating that earnings growth is not fully reflected in the current stock price.
Shareholding and Market Perception
The majority shareholding in Emerald Finance Ltd is held by promoters, which often suggests a stable ownership structure. However, the stock’s Mojo Score remains low at 34.0, with a Mojo Grade of Sell as of 25 June 2025, downgraded from a previous Strong Sell rating. The Market Cap Grade is 4, reflecting a mid-tier market capitalisation relative to other listed companies.
The downgrade in grading and the low Mojo Score reflect the market’s cautious stance on the stock’s near-term prospects, influenced by its recent price performance and fundamental metrics.
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Comparative Sector and Market Performance
Emerald Finance Ltd operates within the NBFC sector, which has seen mixed performance in recent months. The stock’s 1-year return of -56.07% contrasts sharply with the broader market indices and sector averages, highlighting its relative underperformance. While the BSE500 index has generated a 5.78% return over the same period, Emerald Finance’s negative returns indicate challenges in maintaining investor confidence.
The stock’s current valuation metrics suggest it is trading at a fair value compared to peers, but the market’s reaction has been subdued, reflecting concerns over growth sustainability and profitability metrics.
Summary of Key Metrics
To summarise, Emerald Finance Ltd’s key data points as of 21 Jan 2026 are:
- New 52-week low price: Rs.64
- Day’s low intraday drop: -7.42%
- Three-day cumulative return: -18.68%
- 1-year stock return: -56.07%
- Sensex 1-year return: +7.57%
- Net sales growth (latest quarter): +13.04%
- Profit growth (year-on-year): +82.4%
- ROE (average): 8.90%; latest quarter: 13.1%
- Price to Book Value: 2.6
- Mojo Score: 34.0 (Sell grade)
- Market Cap Grade: 4
The stock’s current trajectory and valuation reflect a complex interplay of positive earnings growth and subdued market sentiment, resulting in its recent 52-week low price.
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