Recent Price Movement and Market Context
On 24 Dec 2025, Garnet International opened with a gap down of 2.66%, continuing its losing streak for the fifth consecutive day. The stock touched an intraday low of Rs.49.5, representing a 7.34% drop during the trading session and underperforming its sector by 6.72%. Over the last five trading days, the stock has delivered a cumulative return of -18.73%, signalling persistent selling pressure.
The current price level stands in stark contrast to the stock’s 52-week high of Rs.181, highlighting a substantial depreciation of over 72% from its peak. This decline is further underscored by the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a broad-based weakness in its price momentum.
Sector and Broader Market Performance
While Garnet International has been under pressure, the broader market environment has shown resilience. The Sensex opened flat but moved into positive territory, trading at 85,607.87 points, a 0.1% gain and just 0.64% shy of its 52-week high of 86,159.02. The Sensex is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average, signalling an overall positive trend for large-cap stocks.
Additionally, the BSE Small Cap index, which often reflects the performance of smaller and mid-sized companies, recorded a gain of 0.33% on the same day, contrasting with Garnet International’s underperformance within the NBFC sector.
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Long-Term Performance and Financial Indicators
Garnet International’s one-year performance shows a return of -69.43%, a stark contrast to the Sensex’s 9.11% gain over the same period. This underperformance extends to longer time frames, with the stock lagging behind the BSE500 index over the past three years, one year, and three months.
From a fundamental perspective, the company’s long-term growth has been subdued. Net sales have declined at an annual rate of -7.76%, while the average Return on Equity (ROE) stands at 4.73%, reflecting modest profitability relative to shareholder equity. These metrics suggest challenges in generating sustainable growth and returns over time.
Shareholding and Promoter Pledging
A notable factor contributing to the stock’s pressure is the high level of promoter share pledging. Currently, 25.53% of promoter shares are pledged, with an increase of 14% in pledged holdings over the last quarter. In volatile or falling markets, elevated pledged shares can exert additional downward pressure on stock prices, as forced selling or margin calls may arise.
Recent Quarterly Financial Results
Despite the overall negative price trend, Garnet International reported positive quarterly results in September 2025. The company recorded its highest quarterly PBDIT at Rs.1.76 crore and PBT less other income at Rs.2.80 crore. Net profit after tax (PAT) also reached a quarterly peak of Rs.2.81 crore. These figures indicate some operational improvements in the near term.
Moreover, the company’s ROE for the quarter was 10.3%, accompanied by a Price to Book Value ratio of 2.5, which is considered attractive relative to its peers. The stock is trading at a discount compared to the average historical valuations of similar companies in the sector.
Profitability Versus Price Movement
Interestingly, while the stock price has declined by nearly 70% over the past year, the company’s profits have risen by 13.5% during the same period. This divergence is reflected in a PEG ratio of 1.8, suggesting that the market valuation has not aligned with the recent profit growth.
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Summary of Key Factors Affecting Garnet International’s Stock
The stock’s fall to Rs.49.5, its lowest level in 52 weeks, is the result of a combination of factors including sustained negative returns over the past year, subdued long-term sales growth, modest profitability metrics, and a significant proportion of promoter shares pledged. These elements have contributed to a challenging market environment for the stock, despite some recent improvements in quarterly profitability.
While the broader market and sector indices have shown resilience, Garnet International’s price action remains weak, reflecting the market’s cautious stance towards the company’s fundamentals and shareholding structure.
Investor Considerations
Given the stock’s current position below all major moving averages and its extended downtrend, the price level of Rs.49.5 represents a critical point in its trading history. Market participants may continue to monitor the company’s financial disclosures and shareholding patterns closely as they assess the stock’s trajectory within the NBFC sector.
Conclusion
Garnet International’s recent decline to a 52-week low underscores the challenges faced by the company in maintaining market confidence amid a difficult operating environment. The stock’s performance contrasts with broader market gains and sector trends, highlighting the importance of fundamental and structural factors in shaping investor sentiment.
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