Garnet International Falls to 52-Week Low of Rs.96.9 Amidst Market Pressure

The stock recorded an intraday low of Rs.96.9, reflecting a day’s fall of 4.63% and an overall decline of 4.33% by the close. This marks the fifth consecutive day of losses for Garnet International, with the stock returning -9.03% over this period. The current price level is substantially below its 52-week high of Rs.181, underscoring the extent of the recent downward movement.

Garnet International’s share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained selling pressure and a lack of short-term momentum recovery. The stock has underperformed its sector by 3.84% today, highlighting relative weakness within the NBFC space.

In comparison, the broader market index, Sensex, opened positively with a gain of 91.42 points but later declined by 183.06 points to trade at 84,859.31, down 0.11%. The Sensex remains close to its 52-week high of 85,290.06, trading above its 50-day and 200-day moving averages, which contrasts with Garnet International’s weaker technical stance.

Over the past year, Garnet International has generated a return of -23.46%, significantly lagging behind the Sensex’s positive return of 9.72% and the BSE500’s 8.51% gain. This underperformance reflects challenges faced by the company relative to the broader market and its peers within the NBFC sector.

From a fundamental perspective, the company’s long-term financial metrics indicate subdued performance. Garnet International’s average Return on Equity (ROE) stands at 4.73%, which is modest for the sector. Net sales have shown a negative annual growth rate of -7.76%, signalling contraction in revenue over the longer term.

Despite these trends, the company’s quarterly profits have shown some positive movement. The latest quarter reported the highest Profit Before Depreciation, Interest and Tax (PBDIT) at Rs.1.76 crore, Profit Before Tax excluding other income (PBT less OI) at Rs.2.80 crore, and Profit After Tax (PAT) at Rs.2.81 crore. These figures suggest pockets of operational profitability amid broader revenue challenges.

Valuation metrics reveal that Garnet International carries a Price to Book Value ratio of 4.8, which is relatively high compared to its peers’ historical averages. The company’s Return on Equity for the latest period is 10.3%, indicating a valuation that may be considered expensive relative to its fundamental returns. The Price/Earnings to Growth (PEG) ratio stands at 3.5, reflecting the relationship between valuation and earnings growth.

One notable concern is the proportion of promoter shares pledged, which currently accounts for 25.53% of total promoter holdings. This figure has increased by 14% over the last quarter. In declining markets, a higher percentage of pledged shares can exert additional downward pressure on stock prices, as pledged shares may be subject to liquidation in adverse conditions.

Garnet International’s market capitalisation grade is rated at 4, reflecting its size and market presence within the NBFC sector. The company’s Mojo Score currently stands at 23.0, with a recent adjustment in evaluation leading to a change in its Mojo Grade from Sell to Strong Sell as of 8 April 2025. This revision reflects the stock’s recent price action and fundamental metrics.

In summary, Garnet International’s stock has experienced sustained downward pressure culminating in a new 52-week low of Rs.96.9. The stock’s performance over the past year has lagged behind key market indices and sector benchmarks. While quarterly profit metrics show some improvement, longer-term sales contraction and valuation considerations remain relevant factors for market participants analysing the stock’s current position.

Get 2 full years of MojoOne Premium for only Rs. 12,999. Subscribe for 1 year and we'll add another year FREE. Offer valid for a limited time. Start Saving Now →