Garnet International Falls to 52-Week Low of Rs.55.1 Amid Market Pressure

Recent Price Movement and Market Context

On 23 December 2025, Garnet International’s share price reached an intraday low of Rs.55.1, representing a 3.96% decline during the trading session. The stock closed with a day change of -2.41%, underperforming its sector by 3.45%. Over the last four trading days, the stock has recorded a cumulative return of -9.7%, signalling sustained selling pressure. Notably, the share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend.

In contrast, the broader market displayed mixed signals. The Sensex opened 122.62 points higher but later declined by 325.08 points, closing at 85,365.02, down 0.24%. The index remains close to its 52-week high of 86,159.02, trading just 0.93% below that level. Small-cap stocks showed marginal gains, with the BSE Small Cap index rising by 0.02%, highlighting a divergence between Garnet International’s performance and the broader small-cap segment.

Long-Term Performance and Valuation Metrics

Garnet International’s one-year performance stands at -67.13%, a stark contrast to the Sensex’s 8.75% gain over the same period. The stock’s 52-week high was Rs.181, underscoring the extent of the decline. Over the past three years, the company has underperformed the BSE500 index across multiple time frames, including one year and three months, reflecting persistent challenges in maintaining growth momentum.

The company’s long-term financial indicators reveal subdued fundamentals. The average Return on Equity (ROE) is 4.73%, which is considered weak for the NBFC sector. Net sales have shown a negative compound annual growth rate of -7.76%, indicating contraction in revenue over recent years. These factors contribute to the subdued market sentiment surrounding the stock.

Promoter Shareholding and Pledge Impact

One notable concern is the high proportion of pledged promoter shares, which currently stands at 25.53%. This level of pledged shares has increased by 14% over the last quarter. Elevated pledged holdings can exert additional downward pressure on the stock price, especially during periods of market volatility or falling prices, as promoters may be compelled to liquidate shares to meet margin requirements.

Recent Quarterly Financial Performance

Despite the stock’s price decline, 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 crores, reflecting a growth of 443.7% compared to the previous four-quarter average. The Profit Before Depreciation, Interest and Tax (PBDIT) reached Rs.1.76 crores, the highest recorded in recent quarters. Net Profit After Tax (PAT) also peaked at Rs.2.81 crores during this period.

The company’s ROE for the recent quarter was 10.3%, which is comparatively more attractive than its long-term average. Additionally, the stock trades at a Price to Book Value ratio of 2.7, suggesting a valuation discount relative to its peers’ historical averages. Over the past year, while the stock price has declined by 67.13%, the company’s profits have risen by 13.5%, resulting in a Price/Earnings to Growth (PEG) ratio of 2.

Sector and Industry Considerations

Garnet International operates within the Non Banking Financial Company (NBFC) sector, which has experienced varied performance in recent months. While some NBFCs have shown resilience, others have faced headwinds due to regulatory changes and credit environment concerns. Garnet International’s current valuation and financial metrics reflect these sectoral pressures, compounded by company-specific factors such as sales contraction and promoter share pledging.

Summary of Key Metrics

The stock’s 52-week low of Rs.55.1 contrasts sharply with its 52-week high of Rs.181, illustrating significant volatility and price erosion. The one-year return of -67.13% is well below the Sensex’s positive 8.75% return, highlighting the stock’s relative underperformance. The company’s average ROE of 4.73% and negative net sales growth rate of -7.76% over the long term further contextualise the challenges faced by Garnet International.

While recent quarterly results show some improvement in profitability metrics, the stock remains under pressure, trading below all major moving averages and contending with elevated pledged promoter shares. These factors contribute to the stock’s current position at its 52-week low.

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