Stock Price Movement and Market Context
On 20 Feb 2026, Reliance Home Finance Ltd’s share price hit Rs.2.51, its lowest level in the past year. This represents a decline of 2.68% on the day and a cumulative fall of 5.58% over the last three trading days. The stock’s performance today notably underperformed the Housing Finance Company sector by 3.04%, signalling relative weakness within its industry group.
Technical indicators further underline the bearish trend, with the stock trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based downward momentum suggests sustained selling pressure and a lack of near-term technical support.
In contrast, the broader market displayed resilience. The Sensex, after opening 225.65 points lower, rebounded sharply to close 542.22 points higher at 82,814.71, a gain of 0.38%. The index remains within 4.04% of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. Despite this positive market backdrop, Reliance Home Finance Ltd’s shares have continued to lag significantly.
Long-Term Performance and Fundamental Assessment
Over the past year, Reliance Home Finance Ltd has delivered a negative return of 22.56%, contrasting sharply with the Sensex’s positive 9.35% gain over the same period. The stock’s 52-week high was Rs.7.84, indicating a substantial decline of approximately 68% from that peak.
Fundamental metrics reveal ongoing challenges. The company has not declared financial results in the last six months, contributing to uncertainty around its current financial health. Annualised net sales growth has contracted sharply at a rate of -83.08%, while operating profit has deteriorated even more steeply, declining by 207.23% annually. These figures point to significant pressure on the company’s revenue generation and profitability.
Despite these headwinds, the company reported positive results for the last three consecutive quarters, with a notable increase in profit after tax (PAT) for the nine-month period, reaching Rs.3.03 crore. However, this improvement has not translated into a sustained recovery in the stock price or investor confidence.
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Valuation and Risk Considerations
The stock’s current valuation is considered risky relative to its historical averages. The company’s Mojo Score stands at 17.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 23 Oct 2025. This grading reflects the market’s cautious stance given the company’s weak long-term fundamentals and recent financial disclosures.
Reliance Home Finance Ltd’s market capitalisation grade is rated 4, indicating a relatively small market cap within its sector. The stock’s underperformance extends beyond the last year, with returns trailing the BSE500 index over the past three years, one year, and three months. This persistent lag highlights structural challenges in the company’s growth trajectory and market positioning.
Sector and Industry Dynamics
Within the Housing Finance Company sector, Reliance Home Finance Ltd’s performance contrasts with broader sector trends. While the sector has experienced fluctuations, the company’s stock has consistently underperformed, suggesting company-specific factors are weighing on its valuation. The sector’s overall movement today was positive, yet Reliance Home Finance Ltd’s shares declined, underscoring its relative weakness.
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Summary of Key Metrics
Reliance Home Finance Ltd’s stock has declined by 22.56% over the last year, with a current price of Rs.2.51, down from a 52-week high of Rs.7.84. The company’s net sales and operating profit have contracted sharply on an annualised basis, while recent quarterly results have shown modest profit growth. The stock trades below all major moving averages and carries a Strong Sell Mojo Grade, reflecting ongoing concerns about its financial health and valuation.
Meanwhile, the broader market and sector indices have shown resilience, with the Sensex nearing its 52-week high and mega-cap stocks leading gains. This divergence highlights the specific challenges faced by Reliance Home Finance Ltd within its industry and the wider market environment.
Conclusion
The fall to a 52-week low at Rs.2.51 marks a significant milestone in Reliance Home Finance Ltd’s recent share price trajectory. The combination of weak long-term growth, absence of recent financial disclosures, and valuation risks have contributed to the stock’s underperformance. While the company has reported positive quarterly profits recently, these have not yet translated into a broader recovery in market valuation or investor confidence.
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