Recent Price Movement and Market Context
On 24 Nov 2025, Paul Merchants' stock price touched an intraday low of Rs.625, representing a fall of 3.7% for the day. This decline contributed to a two-day consecutive downward trend, with the stock losing 3.8% over this period. The stock underperformed its sector by 3.12% on the same day, indicating relative weakness compared to its NBFC peers.
Paul Merchants is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained downward momentum in the stock price over both short and long-term horizons.
Meanwhile, the broader market environment contrasts with Paul Merchants' performance. The Sensex opened 88.12 points higher and was trading at 85,465.95, up 0.27% on the day. The index is close to its 52-week high of 85,801.70, just 0.39% away, and has recorded a 2.7% gain over the past 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 market trend.
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Financial Performance Overview
Paul Merchants has experienced a challenging financial year. Over the past 12 months, the stock has generated a return of -32.98%, significantly lagging behind the Sensex, which recorded an 8.03% gain in the same period. The stock's 52-week high was Rs.1,252, highlighting the extent of the decline to the current low of Rs.625.
Net sales for the company have shown a downward trajectory, with an annualised rate of decline of 9.68%. The most recent quarterly net sales figure stood at Rs.593.41 crores, reflecting a 15.6% reduction compared to the average of the previous four quarters. Operating profit has also been under pressure, with an annualised decline of 162.02%, and the company reported operating cash flow at a yearly low of Rs.-27.19 crores.
Profit after tax (PAT) for the latest quarter was Rs.-6.61 crores, representing a fall of 117.1% relative to the average of the preceding four quarters. This marks the sixth consecutive quarter of negative results for Paul Merchants, underscoring persistent difficulties in profitability.
Valuation and Shareholder Structure
The company’s return on equity (ROE) is currently at -1.2, indicating a negative return on shareholders’ funds. Despite this, the stock trades at a price-to-book value of 0.2, which is considered expensive relative to its peers’ historical valuations. This premium valuation exists even as the company’s financial metrics reflect subdued growth and profitability.
Promoters remain the majority shareholders of Paul Merchants, maintaining significant control over the company’s strategic direction.
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Comparative Performance and Sector Positioning
Over the last three years, Paul Merchants has underperformed the BSE500 index across multiple time frames, including the one-year and three-month periods. This underperformance reflects both near-term and long-term challenges faced by the company within the NBFC sector.
While the broader NBFC sector has seen varied performance, Paul Merchants’ financial indicators and stock price trajectory have remained subdued. The company’s net sales and operating profit trends suggest a contraction in business activity, which has been mirrored in its stock price movement.
The stock’s current trading below all major moving averages further emphasises the prevailing bearish sentiment among market participants.
Summary of Key Metrics
To summarise, Paul Merchants’ stock has reached a new 52-week low of Rs.625, down from its high of Rs.1,252 within the past year. The stock’s recent two-day decline of 3.8% and underperformance relative to its sector by 3.12% highlight ongoing pressures. Financially, the company has reported six consecutive quarters of negative results, with net sales and profits showing contraction. Operating cash flow remains negative, and valuation metrics indicate a premium despite weak fundamentals.
In contrast, the Sensex and broader market indices have maintained positive momentum, with gains over recent weeks and trading near 52-week highs, underscoring the divergence between Paul Merchants and the overall market trend.
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