Recent Price Movement and Market Context
On 6 January 2026, National Standard (India) Ltd recorded an intraday low of Rs.1206, representing a 6.09% drop during the trading session. The stock has been on a consecutive three-day decline, losing 8.61% over this period. This underperformance is notable against the Realty sector, which itself fell by 2.79% today. The broader market, represented by the Sensex, opened lower by 108.48 points and was trading at 85,221.32, down 0.26%. Despite the Sensex being only 1.1% away from its 52-week high of 86,159.02, National Standard’s stock continues to lag significantly.
Technical indicators further highlight the stock’s weakness, with the price trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day. This suggests a persistent bearish trend without signs of immediate recovery. In contrast, the Sensex maintains a bullish stance, trading above its 50-day moving average, which itself is above the 200-day moving average, indicating overall market strength despite the stock’s struggles.
Long-Term Performance and Valuation Concerns
Over the past year, National Standard (India) Ltd has delivered a return of -71.06%, a stark contrast to the Sensex’s positive 9.33% gain over the same period. The stock’s 52-week high was Rs.4457.7, underscoring the magnitude of the decline. This sustained underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 benchmark in each of the previous three annual periods.
Valuation metrics and financial ratios provide further insight into the company’s challenges. The company’s Return on Equity (ROE) stands at a modest 6.15%, indicating limited profitability relative to shareholders’ funds. This figure is a key factor behind the stock’s downgrade from a 'Sell' to a 'Strong Sell' rating on 30 December 2025, as per MarketsMOJO’s assessment, which assigns the stock a low Mojo Score of 26.0. The Market Cap Grade is rated at 3, reflecting concerns about the company’s market valuation relative to its financial health.
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Profitability and Earnings Trends
The company’s operating profit has declined sharply, with an annualised growth rate of -225.15% over the last five years. This steep contraction in operating earnings has weighed heavily on the stock’s valuation and investor sentiment. The latest six-month period ending September 2025 saw the company report a Profit After Tax (PAT) of Rs.5.25 crores, which represents a decline of 29.44% compared to the previous period.
Non-operating income has accounted for 106.17% of the Profit Before Tax (PBT) in the latest quarter, indicating that the company’s core business activities are not generating sufficient profits and that earnings are being supplemented by other income sources. This reliance on non-operating income may raise questions about the sustainability of earnings going forward.
Risk Profile and Shareholding Patterns
Despite its size, National Standard (India) Ltd maintains a low debt-to-equity ratio, averaging zero, which suggests a conservative capital structure with limited leverage. However, the stock’s risk profile remains elevated due to negative EBITDA and declining profitability. Over the past year, profits have fallen by 33.7%, compounding concerns about the company’s financial health.
Notably, domestic mutual funds hold no stake in the company. Given their capacity for detailed research and due diligence, this absence may reflect a cautious stance towards the stock’s valuation and business prospects. The lack of institutional backing further underscores the challenges faced by National Standard in attracting investor confidence.
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Sector and Market Comparison
Within the Realty sector, National Standard’s performance has been notably weaker than peers and the broader market indices. The Metal - Ferrous sector, for instance, declined by 2.12% today, less severe than National Standard’s 3.98% drop. The Sensex’s relative strength, trading near its 52-week high and maintaining bullish moving averages, contrasts with the stock’s persistent downtrend.
Such divergence highlights the stock’s specific challenges rather than sector-wide issues. The company’s financial metrics, including low ROE and negative earnings growth, contribute to its classification as a 'Strong Sell' by MarketsMOJO, reflecting a cautious outlook based on current fundamentals.
Summary of Key Financial Metrics
To summarise, National Standard (India) Ltd’s key financial indicators as of the latest assessments include:
- Mojo Score: 26.0 (Strong Sell)
- ROE: 6.15%
- Operating Profit Growth (5 years annualised): -225.15%
- PAT Growth (latest six months): -29.44%
- Non-operating Income as % of PBT: 106.17%
- Debt to Equity Ratio: 0 (average)
- 1-Year Stock Return: -71.06%
- Sensex 1-Year Return: +9.33%
These figures collectively illustrate the pressures on the company’s earnings and valuation, which have culminated in the stock reaching its lowest price point in a year.
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