Recent Price Movement and Market Context
On 30 Jan 2026, Sai Silks (Kalamandir) Ltd recorded a day decline of 1.15%, underperforming the Sensex which fell by 0.42% on the same day. The stock has been on a losing streak for two consecutive sessions, cumulatively shedding 4.96% in that period. Over the past week, the stock has declined by 7.09%, while the Sensex gained 0.84%. The one-month performance is notably weak, with a 29.90% drop compared to the Sensex’s 2.90% fall.
Extending the horizon, the stock’s three-month return stands at -40.96%, significantly lagging the Sensex’s modest 2.59% decline. Over the last year, Sai Silks has posted a negative return of 36.64%, contrasting sharply with the Sensex’s positive 7.11% gain. Year-to-date, the stock is down 31.79%, while the Sensex has declined by 3.52%. The stock’s three- and five-year returns remain at zero, indicating stagnation, whereas the Sensex has delivered 38.18% and 77.63% respectively over these periods. Over a decade, the Sensex has surged 230.58%, highlighting the relative underperformance of Sai Silks.
Technical indicators reinforce the bearish trend, with the stock trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum.
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Fundamental Performance and Valuation Metrics
Despite the stock’s price decline, Sai Silks has demonstrated some positive financial results in recent quarters. The company has reported positive earnings for three consecutive quarters, with a 9-month Profit After Tax (PAT) of Rs.108.27 crores. The Return on Capital Employed (ROCE) for the half-year period peaked at 15.52%, while the Debt-to-Equity ratio remains low at 0.25 times, reflecting a conservative capital structure. The average Debt-to-Equity ratio over time is also modest at 0.08 times.
The company’s Return on Equity (ROE) stands at 10.3%, and it trades at a Price to Book Value ratio of 1.4, indicating an attractive valuation relative to its peers. The Price/Earnings to Growth (PEG) ratio is 0.7, suggesting that the stock is trading at a discount when considering its profit growth, which has increased by 21% over the past year.
However, the company’s long-term growth rates have been moderate, with net sales growing at an annualised rate of 10.50% and operating profit at 10.78% over the last five years. This pace of growth has not translated into commensurate shareholder returns, as evidenced by the stock’s underperformance relative to the BSE500 index over one, three, and five-year periods.
Institutional Investor Activity
Institutional participation in Sai Silks has declined notably, with a 5.4% reduction in their stake over the previous quarter. Currently, institutional investors hold 9.68% of the company’s equity. Given their analytical resources and market influence, this reduction in institutional ownership may reflect a reassessment of the company’s fundamentals and growth prospects.
Comparative Sector and Market Performance
Within the Garments & Apparels sector, Sai Silks has underperformed its peers and the broader market consistently. The sector itself has experienced volatility, but Sai Silks’ relative weakness is pronounced. The stock’s underperformance against the Sensex and BSE500 indices across multiple time frames highlights the challenges faced in maintaining investor confidence and market relevance.
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Summary of Key Financial and Market Indicators
Sai Silks’ current Mojo Score is 43.0, with a Mojo Grade of Sell, downgraded from Hold on 19 Jan 2026. The company’s Market Cap Grade is 3, reflecting its small-cap status within the Garments & Apparels sector. The stock’s recent price action and fundamental metrics indicate a challenging environment for the company, with valuation discounts and subdued investor interest.
While the company maintains a low debt profile and has reported positive earnings growth, the stock’s price performance and institutional ownership trends suggest ongoing market caution. The gap between profit growth and share price returns remains a notable feature of Sai Silks’ current situation.
Conclusion
The fall of Sai Silks (Kalamandir) Ltd to an all-time low of Rs.106.7 underscores a period of sustained underperformance relative to market benchmarks and sector peers. Despite some positive financial indicators, the stock’s price trajectory and reduced institutional participation highlight the severity of the current market sentiment. The company’s moderate growth rates and valuation metrics provide context to the stock’s challenges within the competitive garments and apparels industry.
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