Stock Performance and Market Context
On 25 Nov 2025, Garnet International’s share price reached an intraday low of Rs.65, representing a 9.66% drop within the trading day. The stock’s weighted average price volatility stood at 5.07%, indicating heightened price fluctuations. Over the past three trading sessions, the stock has recorded a cumulative return of -8.2%, underperforming its sector by 3.07% today alone.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward momentum. This contrasts with the broader market, where the Sensex opened higher at 85,008.93 points and remains close to its 52-week high of 85,801.70, trading just 1.01% below that peak. The Sensex is also positioned above its 50-day and 200-day moving averages, reflecting a generally bullish market environment.
Small-cap stocks have led the market gains today, with the BSE Small Cap index rising by 0.1%, further highlighting Garnet International’s relative underperformance within its peer group.
Long-Term Price and Market Capitalisation Trends
Over the past year, Garnet International’s stock price has declined by 42.19%, a stark contrast to the Sensex’s 6.04% gain during the same period. The stock’s 52-week high was Rs.181, underscoring the extent of the recent price erosion. The company’s market capitalisation grade is modest, reflecting its position within the NBFC sector and its current valuation challenges.
One notable factor contributing to the stock’s pressure is the high proportion of promoter shares pledged, which currently stands at 25.53%. This figure has increased by 14% over the last quarter, adding potential selling pressure in falling markets as pledged shares may be liquidated to meet margin requirements.
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Financial Metrics and Growth Analysis
Garnet International’s long-term financial indicators reveal subdued growth trends. The company’s net sales have shown a negative compound annual growth rate of 7.76%, indicating contraction over recent years. Return on Equity (ROE) averaged 4.73%, reflecting limited profitability relative to shareholder equity.
Despite these challenges, the company reported positive quarterly results in September 2025, following flat performance in June 2025. The Profit Before Depreciation, Interest, and Taxes (PBDIT) for the quarter reached Rs.1.76 crore, while Profit Before Tax excluding other income (PBT less OI) was Rs.2.80 crore. Net profit after tax (PAT) stood at Rs.2.81 crore, marking the highest quarterly profit recorded in recent periods.
These figures correspond with an ROE of 10.3% for the quarter and a Price to Book Value ratio of 3.4, suggesting a valuation that is fair relative to the company’s recent earnings. However, the stock continues to trade at a discount compared to its peers’ historical valuations.
Comparative Market Performance
While the broader BSE500 index has generated returns of 4.64% over the last year, Garnet International’s stock has lagged significantly, with a negative return of 42.19%. This divergence highlights the stock’s relative weakness within the NBFC sector and the wider market.
The company’s Price/Earnings to Growth (PEG) ratio stands at 2.4, reflecting the relationship between its earnings growth and valuation. Over the past year, profits have risen by 13.5%, a positive sign amid the stock’s price decline.
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Summary of Current Concerns
The stock’s recent decline to Rs.65, its lowest level in 52 weeks, is influenced by a combination of factors including weak long-term sales growth, modest return on equity, and the increased proportion of pledged promoter shares. These elements contribute to downward pressure on the stock price, particularly in a market environment where broader indices and small-cap stocks have shown resilience.
Garnet International’s trading below all major moving averages further emphasises the prevailing bearish sentiment among market participants. The stock’s volatility and underperformance relative to sector peers and the broader market underline the challenges faced by the company in regaining investor confidence.
Market Environment and Sector Overview
The NBFC sector, to which Garnet International belongs, has experienced mixed performance in recent months. While some companies have shown signs of recovery and growth, others continue to face headwinds related to credit quality, regulatory changes, and market sentiment. Garnet International’s financial metrics and share price movements reflect these broader sector dynamics.
Despite the Sensex’s proximity to its 52-week high and a generally positive market tone, Garnet International’s stock has not mirrored this trend, highlighting company-specific factors that have weighed on its valuation.
Conclusion
Garnet International’s fall to a 52-week low of Rs.65 marks a significant moment in its recent trading history. The stock’s performance over the past year, combined with its financial indicators and market positioning, illustrates the challenges it faces within a competitive and evolving NBFC sector. While the broader market environment remains supportive, the company’s valuation and share price reflect ongoing concerns that have yet to be fully resolved.
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