Garnet International Falls to 52-Week Low of Rs.61.5 Amid Market Pressure

Stock Price Movement and Market Context

On 16 Dec 2025, Garnet International's share price touched an intraday low of Rs.61.5, representing a 7.48% decline on the day. This drop contributed to a three-day consecutive fall, during which the stock has recorded a cumulative return of -17.6%. The day’s performance also saw the stock underperform its sector by 6.98%, reflecting challenges specific to the company within the Non Banking Financial Company (NBFC) sector.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market, where the Sensex opened 187.75 points lower and was trading at 84,890.49, down 0.38%. Notably, the Sensex remains close to its 52-week high of 86,159.02, just 1.49% away, and is positioned above its 50-day and 200-day moving averages, signalling a generally bullish market environment.

Long-Term Performance and Valuation Metrics

Over the past year, Garnet International has recorded a negative return of 60.16%, a stark contrast to the Sensex’s positive return of 3.84% and the BSE500 index’s 1.08% gain. The stock’s 52-week high was Rs.181, highlighting the extent of the decline to the current low.

From a fundamental perspective, the company’s long-term financial indicators show subdued growth. Net sales have contracted at an annual rate of 7.76%, while the average Return on Equity (ROE) stands at 4.73%, reflecting modest profitability relative to equity capital. These factors contribute to the stock’s valuation challenges within its sector.

Promoter Shareholding and Market Impact

One notable factor influencing the stock’s performance is the proportion of promoter shares pledged, which currently stands at 25.53%. This figure has increased by 14% over the last quarter, adding pressure on the stock price, particularly in a falling market environment. High pledged shareholding can lead to additional selling pressure if margin calls arise, which may exacerbate price declines.

Recent Quarterly Financial Results

Despite the stock’s price challenges, Garnet International reported positive quarterly results in September 2025 following flat results in June 2025. The Profit Before Tax excluding Other Income (PBT LESS OI) for the quarter was Rs.2.80 crore, reflecting a growth of 443.7% compared to the previous four-quarter average. Additionally, the Profit Before Depreciation, Interest, and Tax (PBDIT) reached Rs.1.76 crore, the highest recorded for the company in recent quarters. The Profit After Tax (PAT) also peaked at Rs.2.81 crore during this period.

These figures indicate some improvement in profitability metrics, although they have not yet translated into a reversal of the stock’s downward trend.

Valuation and Comparative Analysis

Garnet International’s Return on Equity for the recent quarter was 10.3%, with a Price to Book Value ratio of 3.1. This valuation is considered fair relative to its peers, with the stock trading at a discount compared to the average historical valuations within the NBFC sector. Over the past year, while the stock price has declined by 60.16%, the company’s profits have risen by 13.5%, resulting in a Price/Earnings to Growth (PEG) ratio of 2.3.

Sector and Market Comparison

Within the NBFC sector, Garnet International’s recent performance contrasts with the broader market’s relative stability. The Sensex’s proximity to its 52-week high and its position above key moving averages suggest a generally positive market sentiment, which has not been reflected in Garnet International’s share price. The stock’s underperformance relative to both the Sensex and the BSE500 index highlights company-specific factors influencing investor sentiment and trading activity.

Summary of Key Price and Performance Indicators

To summarise, Garnet International’s stock has reached Rs.61.5, its lowest level in the past 52 weeks, following a series of declines over three consecutive trading sessions. The stock’s current valuation metrics and recent quarterly results provide a mixed picture, with some improvement in profitability but ongoing challenges reflected in long-term sales contraction and elevated pledged promoter shares. The stock’s performance remains subdued compared to the broader market indices and sector peers.

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