Recent Price Movement and Market Context
On 6 Jan 2026, Garnet International Ltd opened with a gap up of 2.96%, reaching an intraday high of Rs.50.48. However, the stock reversed course during the session, closing near its low at Rs.48, down 2.10% on the day. This marks the third consecutive day of declines, with the stock losing 9.31% over this period. The stock’s performance today lagged its NBFC sector peers by 2.95%, underscoring relative weakness.
Despite the broader market’s positive momentum, with the Sensex trading at 85,186.87, just 1.14% shy of its 52-week high of 86,159.02, Garnet International’s shares continue to struggle. The Sensex remains above its 50-day and 200-day moving averages, signalling a generally bullish market environment, which contrasts with the stock’s downward trajectory.
Technical Indicators Highlight Bearish Trends
Technically, Garnet International is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating sustained selling pressure. This technical positioning often signals a lack of short-term and long-term buying interest, contributing to the stock’s slide to its lowest level in a year.
Fundamental Performance and Financial Metrics
The company’s long-term fundamentals remain subdued. Garnet International’s average Return on Equity (ROE) stands at 4.73%, which is considered weak for the NBFC sector. Additionally, the company has experienced a negative compound annual growth rate in net sales of -7.76%, reflecting contraction rather than expansion over recent years.
These factors have contributed to a downgrade in the company’s Mojo Grade from Strong Sell to Sell as of 22 Dec 2025, with a current Mojo Score of 32.0. The Market Cap Grade is rated 4, indicating a relatively small market capitalisation compared to larger peers.
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Promoter Shareholding and Pledge Concerns
One notable factor weighing on the stock is the high proportion of pledged promoter shares, which currently stands at 25.53%. This represents a 14% increase in pledged holdings over the last quarter. Elevated pledged shares can exert additional downward pressure on stock prices, especially in volatile or declining markets, as promoters may be compelled to liquidate holdings to meet margin calls or debt obligations.
Long-Term and Recent Performance Comparison
Over the past year, Garnet International has delivered a negative return of -71.63%, significantly underperforming the Sensex, which posted a positive 9.26% return over the same period. The stock has also lagged the broader BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating persistent underperformance relative to the market and its peers.
Quarterly Financial Results
Despite the overall challenging backdrop, the company reported some positive quarterly results in September 2025. Profit Before Tax excluding Other Income (PBT LESS OI) for the quarter was Rs.2.80 crores, representing a substantial growth of 443.7% compared to the previous four-quarter average. Similarly, Profit Before Depreciation, Interest and Tax (PBDIT) reached a quarterly high of Rs.1.76 crores, while Profit After Tax (PAT) also hit a peak of Rs.2.81 crores.
These figures suggest pockets of operational improvement, although they have not yet translated into a sustained recovery in the stock price or broader financial metrics.
Valuation Metrics
Garnet International currently trades at a Price to Book Value ratio of 2.3, which is considered attractive relative to its peers’ historical valuations. The company’s Return on Equity for the recent quarter improved to 10.3%, indicating better utilisation of equity capital in the short term. However, the Price/Earnings to Growth (PEG) ratio stands at 1.7, reflecting moderate valuation relative to earnings growth.
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Summary of Key Challenges
The stock’s decline to Rs.48, its lowest level in 52 weeks, reflects a combination of factors including weak long-term financial performance, high promoter share pledging, and sustained underperformance relative to market benchmarks. While recent quarterly results show some improvement in profitability, these have yet to reverse the broader negative trend in the stock price.
Garnet International’s current market environment is further complicated by its technical positioning below all major moving averages and a Mojo Grade of Sell, indicating cautious sentiment among market participants.
Market Outlook and Positioning
In contrast to Garnet International’s performance, the broader market continues to exhibit strength, with the Sensex trading near its 52-week high and maintaining bullish moving average alignments. This divergence highlights the specific challenges faced by the company within the NBFC sector and micro-cap segment.
Conclusion
Garnet International Ltd’s fall to a 52-week low of Rs.48 underscores the ongoing pressures on the company’s stock amid subdued fundamentals and elevated promoter share pledging. Despite some positive quarterly earnings growth, the stock remains under significant pressure, reflecting a cautious stance in the current market environment.
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