Stock Price Movement and Market Context
On 8 January 2026, Garnet International Ltd’s share price declined by 3.71% intraday, reaching Rs.46.21, its lowest level in the past year. This represents a day change of -2.38%, underperforming its NBFC sector by 1.26%. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In comparison, the Nifty index closed at 25,876.85, down 263.9 points or 1.01%, and remains 1.92% below its 52-week high of 26,373.20. Despite the broader market’s modest decline, Garnet International’s share price has experienced a more pronounced fall, highlighting company-specific pressures.
Long-Term Performance and Relative Weakness
Over the past year, Garnet International Ltd has delivered a negative return of 73.11%, a stark contrast to the Sensex’s positive 7.72% gain over the same period. The stock’s 52-week high was Rs.181, underscoring the magnitude of the decline. This underperformance extends beyond the last year, with the company lagging the BSE500 index across one-year, three-year, and three-month timeframes.
The persistent downward trend reflects challenges in sustaining growth and profitability, which have weighed on investor sentiment and valuation.
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Fundamental Metrics and Financial Health
Garnet International Ltd’s long-term fundamental strength remains subdued, with an average Return on Equity (ROE) of 4.73%, which is considered weak relative to industry standards. The company’s net sales have contracted at an annual rate of -7.76%, indicating a decline in top-line growth over recent years.
Additionally, promoter shareholding dynamics have added pressure on the stock. Currently, 25.53% of promoter shares are pledged, a factor that can exacerbate downward price movements during market declines. Notably, the proportion of pledged shares has increased by 14% over the last quarter, signalling potential liquidity concerns within the promoter group.
Recent Quarterly Performance Highlights
Despite the overall negative trend, the company reported positive quarterly results in September 2025, following flat results in June 2025. The Profit Before Depreciation, Interest and Taxes (PBDIT) for the quarter reached Rs.1.76 crore, the highest recorded in recent quarters. Profit Before Tax excluding Other Income (PBT less OI) also peaked at Rs.2.80 crore, while Profit After Tax (PAT) stood at Rs.2.81 crore, marking the highest quarterly profit in the period under review.
These figures suggest some operational improvements, although they have not yet translated into a sustained recovery in the stock price or broader financial performance.
Valuation and Comparative Analysis
From a valuation perspective, Garnet International Ltd exhibits a Price to Book Value ratio of 2.3, which is considered attractive relative to its peers’ historical averages. The company’s ROE 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 1.6, reflecting moderate valuation relative to earnings growth. Over the past year, while the stock price has declined by 73.11%, the company’s profits have increased by 13.5%, highlighting a disconnect between earnings performance and market valuation.
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Market Capitalisation and Mojo Ratings
Garnet International Ltd holds a Market Capitalisation Grade of 4, indicating a relatively modest market cap size within its sector. The company’s Mojo Score currently stands at 32.0, with a Mojo Grade of ‘Sell’ as of 22 December 2025, an upgrade from the previous ‘Strong Sell’ rating. This change reflects a slight improvement in the company’s outlook, although the overall assessment remains cautious.
The NBFC sector itself has faced headwinds recently, with all market capitalisation segments experiencing declines. Large-cap stocks have been the primary drag on the market, with the Nifty Next 50 index falling by 2.11%, further compounding pressure on mid and small-cap NBFC stocks like Garnet International.
Summary of Key Concerns
The stock’s fall to a 52-week low is underpinned by several factors: weak long-term growth, subdued return on equity, increased promoter share pledging, and sustained underperformance relative to benchmark indices and sector peers. While recent quarterly profits have shown improvement, these have not yet been sufficient to reverse the broader negative trend in the stock price.
Trading below all major moving averages and significantly off its 52-week high, Garnet International Ltd remains under pressure amid a challenging market environment for NBFCs and ongoing company-specific valuation concerns.
Conclusion
Garnet International Ltd’s decline to Rs.46.21 marks a notable milestone in its recent share price trajectory, reflecting persistent challenges in growth and valuation. The company’s financial metrics and market performance continue to signal caution, with the stock’s current positioning indicative of ongoing headwinds within the NBFC sector and the company’s specific fundamentals.
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