Today’s fall in Garnet International’s share price represents a continuation of a seven-day losing streak, during which the stock has recorded a cumulative return of -30.74%. This performance contrasts sharply with the broader market, where the Sensex has advanced by 0.6% to reach a new 52-week high of 85,695.42 points. The Sensex’s positive momentum is supported by mega-cap stocks and bullish moving averages, with the 50-day moving average trading above the 200-day moving average, signalling sustained market strength.
In comparison, Garnet International is trading below all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a persistent weakness in its price momentum. The stock’s underperformance extends beyond the recent week, with a one-year return of -41.71%, while the Sensex has recorded a gain of 10.44% over the same period. This divergence highlights the challenges faced by the company relative to the broader market and its sector peers.
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Several factors contribute to the current valuation and price movement of Garnet International. The company’s long-term financial indicators reveal a modest average Return on Equity (ROE) of 4.73%, which is relatively low for the NBFC sector. Additionally, net sales have shown a negative annual growth rate of -7.76%, reflecting contraction over recent years. These metrics suggest subdued growth prospects and limited capital efficiency.
Another notable aspect is the proportion of promoter shares pledged, which stands at 25.53%. This figure has increased by 14% over the last quarter, adding potential pressure on the stock price, especially in declining market conditions. High pledged shareholding can lead to forced selling if margin calls arise, which may exacerbate downward price movements.
Despite the stock’s price challenges, Garnet International reported positive quarterly results in September 2025, following flat results in June 2025. The company’s 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) for the quarter was Rs.2.81 crore, marking the highest quarterly profit recorded recently.
These earnings figures correspond with a quarterly Return on Equity of 10.3%, which is an improvement compared to the longer-term average. The stock’s Price to Book Value ratio stands at 3.5, indicating a valuation discount relative to its peers’ historical averages. Over the past year, while the stock price has declined by 41.71%, the company’s profits have risen by 13.5%, resulting in a Price/Earnings to Growth (PEG) ratio of 2.5.
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In the context of the broader NBFC sector, Garnet International’s performance has lagged behind. The BSE500 index, which includes a wide range of companies, has generated returns of 8.64% over the last year, while Garnet International’s stock has declined significantly. This underperformance reflects both sector-specific and company-specific factors impacting investor sentiment and valuation.
Market participants observing Garnet International will note the contrast between the company’s recent profit growth and its share price trajectory. The stock’s current trading levels at Rs.72 represent a substantial discount to its 52-week high of Rs.181, underscoring the volatility and challenges faced by the company in maintaining investor confidence.
Overall, Garnet International’s recent price movement to a 52-week low is a reflection of its subdued financial metrics, increased promoter share pledging, and relative underperformance compared to the broader market and sector indices. While the company has reported some positive quarterly earnings, the stock remains under pressure as it trades below all major moving averages and continues its downward trend.
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