Stock Price Movement and Market Context
On 24 Nov 2025, Garnet International’s share price touched an intraday low of Rs.69.2, representing a 7.79% decline during the trading session. This new low comes after two consecutive days of losses, with the stock registering a cumulative return of -4.53% over this period. The day’s overall change was recorded at -2.80%, underperforming its sector by 3.25%. Notably, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the broader market has shown resilience. The Sensex opened 88.12 points higher and was trading at 85,466.86, up 0.28% on the day. The index is approaching its 52-week high of 85,801.70, just 0.39% away, and has recorded a 2.7% gain over the last three weeks. Mega-cap stocks have been leading this rally, with the Sensex trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a bullish trend for the broader market.
Long-Term Performance and Valuation Metrics
Over the past year, Garnet International’s stock has declined by 42.56%, a stark contrast to the Sensex’s 7.97% gain during the same period. The stock’s 52-week high was Rs.181, underscoring the extent of the recent price erosion. This underperformance is further emphasised when compared to the BSE500 index, which has generated returns of 6.73% over the last year, while Garnet International has recorded negative returns.
Fundamental indicators provide additional context to the stock’s price movement. The company’s average Return on Equity (ROE) stands at 4.73%, reflecting modest profitability relative to equity capital. Net sales have shown a negative compound annual growth rate of -7.76%, indicating contraction in revenue over the longer term. These factors contribute to the subdued market valuation and investor sentiment.
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Shareholding and Pledged Shares
One notable aspect impacting Garnet International’s stock price is the proportion of promoter shares that are pledged. Currently, 25.53% of promoter holdings are pledged, which 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 these shares may be subject to liquidation in adverse conditions.
Quarterly Financial Highlights
Despite the stock’s price challenges, the company reported positive quarterly results in September 2025 following flat results in June 2025. The Profit Before Depreciation, Interest, and Taxes (PBDIT) for the quarter reached Rs.1.76 crore, the highest recorded in recent quarters. Profit Before Tax excluding Other Income (PBT less OI) was Rs.2.80 crore, while Profit After Tax (PAT) stood at Rs.2.81 crore, also the highest quarterly figure.
These figures suggest some operational improvements, although they have not yet translated into a sustained recovery in the stock price. The company’s ROE for the recent period was 10.3%, and it is trading at a Price to Book Value ratio of 3.5, which is lower than the average historical valuations of its peers. Over the past year, while the stock price has declined by 42.56%, profits have risen by 13.5%, resulting in a Price/Earnings to Growth (PEG) ratio of 2.6.
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Summary of Key Concerns and Market Position
Garnet International’s stock has been under pressure due to a combination of subdued long-term growth, modest profitability, and an elevated level of pledged promoter shares. The stock’s trading below all major moving averages reflects the prevailing bearish sentiment. Meanwhile, the broader market and sector have shown relative strength, with the Sensex nearing its 52-week high and trading above key moving averages.
The company’s recent quarterly results indicate some improvement in profitability metrics, but these have not yet influenced the stock’s valuation or price trend. The stock’s current valuation metrics suggest it is trading at a discount relative to its peers, although this has not been sufficient to arrest the downward price movement.
Investors monitoring Garnet International will note the divergence between the company’s financial performance and its stock price trajectory, as well as the broader market’s positive momentum. The stock’s 52-week low of Rs.69.2 marks a significant milestone in its recent price history, reflecting the challenges faced by the company within the NBFC sector.
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