Stock Price Movement and Market Context
On 31 Dec 2025, Goenka Business & Finance Ltd’s stock price fell by 2.27% during the trading session, underperforming its sector by 2.9%. The stock has been on a losing streak for two consecutive days, registering a cumulative decline of 5.74% over this period. The current price of Rs.6.06 is substantially lower than its 52-week high of Rs.19.74, reflecting a steep depreciation of approximately 69.3% from that peak.
Technical indicators further underline the bearish trend, with the stock trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day. This persistent weakness contrasts with the broader market, where the Sensex opened 118.50 points higher and was trading at 84,994.86, up 0.38%. The Sensex remains close to its 52-week high of 86,159.02, just 1.37% away, and is supported by bullish moving averages, with the 50-day DMA above the 200-day DMA. Additionally, the BSE Small Cap index gained 0.9%, indicating strength in smaller stocks, which Goenka Business & Finance Ltd has not mirrored.
Financial Performance and Valuation Metrics
The company’s financials have shown signs of strain over the past year. Goenka Business & Finance Ltd reported negative results for four consecutive quarters, with Profit Before Tax excluding other income (PBT LESS OI) falling sharply to a loss of Rs.2.60 crore in the latest quarter, a decline of 223.0% compared to the previous four-quarter average. Similarly, the Profit After Tax (PAT) plunged to a loss of Rs.1.97 crore, representing a dramatic fall of 2526.7% relative to the prior four-quarter average.
Net sales for the latest six months stood at Rs.39.26 crore, reflecting a contraction of 22.97% year-on-year. Over the longer term, the company’s net sales have declined at an annual rate of 8.51%, signalling subdued growth prospects. Return on Equity (ROE) has averaged a modest 3.61%, with the most recent figure at a negative 9.9%, indicating challenges in generating shareholder value.
Valuation metrics reveal a Price to Book Value ratio of 0.3, suggesting the stock is trading at a discount relative to its book value. Despite this, the valuation is considered very expensive when juxtaposed with the company’s negative ROE and deteriorating profitability. Over the past year, the stock has delivered a total return of -64.39%, significantly underperforming the Sensex’s positive 8.77% return during the same period. Profitability has also declined sharply, with profits falling by 219.6% year-on-year.
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Long-Term Performance and Market Position
Goenka Business & Finance Ltd’s performance over the last three years has been below par, with the stock underperforming the BSE500 index across multiple time frames including one year and three months. The company’s market capitalisation grade stands at 4, reflecting a relatively modest market cap within its sector. The Mojo Score assigned to the stock is 7.0, with a Mojo Grade of Strong Sell as of 21 Apr 2025, upgraded from a previous Sell rating. This grading reflects the company’s weak long-term fundamentals and deteriorating financial health.
The majority of the company’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. Despite the challenging environment, the stock’s valuation remains broadly in line with its peers’ historical averages, though the underlying fundamentals lag considerably.
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Summary of Key Concerns
The stock’s decline to Rs.6.06 marks a significant low point in its 52-week trading range, underscoring ongoing challenges. The company’s negative quarterly results, declining sales, and weak return metrics have contributed to investor caution. The stock’s consistent underperformance relative to the Sensex and its sector peers highlights the difficulties faced by Goenka Business & Finance Ltd in regaining momentum.
Despite trading at a discount to book value, the valuation does not reflect an improvement in profitability or growth, with recent quarters showing substantial losses. The stock’s position below all major moving averages further emphasises the prevailing bearish sentiment among market participants.
While the broader market and small-cap segments have shown strength, Goenka Business & Finance Ltd’s share price trajectory remains subdued, reflecting the company’s current financial and operational realities.
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