Sakthi Finance Ltd Falls to 52-Week Low of Rs.31.25 Amidst Weak Performance

Stock Price Movement and Market Context

On 2 Feb 2026, Sakthi Finance Ltd recorded its lowest price in the last 52 weeks at Rs.31.25. Despite this, the stock outperformed its sector by 0.63% today and has gained 2.17% over the last two consecutive trading sessions. However, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating persistent downward pressure.

The broader market context shows the Sensex opened 167.26 points lower and was trading at 80,519.91, down 0.25%. Notably, other indices such as the S&P BSE FMCG and NIFTY FMCG also hit new 52-week lows on the same day. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting mixed signals for the broader market.

Over the past year, Sakthi Finance Ltd has delivered a negative return of 41.06%, significantly underperforming the Sensex, which posted a positive return of 3.92% during the same period. The stock’s 52-week high was Rs.59.69, highlighting the extent of the decline.

Financial Performance and Fundamental Assessment

The company’s long-term financial indicators reveal a challenging environment. Sakthi Finance Ltd’s average Return on Equity (ROE) stands at a modest 6.25%, reflecting limited profitability relative to shareholder equity. Net sales have grown at an annual rate of 4.69%, while operating profit has increased at a slightly lower rate of 4.44%, indicating subdued growth momentum.

Recent quarterly results for September 2025 were largely flat, with Profit Before Tax excluding other income (PBT less OI) at a low Rs.5.46 crore. The company’s debt-equity ratio remains elevated at 5.45 times as of the half-year period, underscoring a high leverage position that may constrain financial flexibility.

In addition to the weak long-term growth, Sakthi Finance Ltd has underperformed the BSE500 index over the last three years, one year, and three months, reinforcing the trend of below-par performance both in the near and extended term.

Valuation and Comparative Metrics

Despite the subdued financial performance, Sakthi Finance Ltd exhibits a very attractive valuation profile. The company’s ROE for the most recent period is slightly higher at 7.4%, and it trades at a Price to Book Value (P/BV) of 0.9, indicating the stock is priced below its book value. This valuation is at a discount compared to the average historical valuations of its peers within the NBFC sector.

Over the past year, while the stock price declined by 41.06%, the company’s profits increased by 6.9%, resulting in a Price/Earnings to Growth (PEG) ratio of 1.8. This suggests that the market valuation has not fully reflected the modest profit growth achieved during the period.

The majority shareholding remains with the promoters, maintaining a stable ownership structure.

Rating and Market Sentiment

MarketsMOJO assigns Sakthi Finance Ltd a Mojo Score of 26.0, categorising it as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 8 Jan 2026, reflecting deteriorated fundamentals and weak market positioning. The company’s Market Cap Grade is 4, indicating a relatively small market capitalisation within its sector.

Despite the recent two-day gain of 2.17%, the stock’s overall trend remains negative, with prices consistently below all major moving averages. The combination of high leverage, modest profitability, and subdued growth has contributed to the cautious stance reflected in the rating.

Summary of Key Metrics

To summarise, Sakthi Finance Ltd’s key financial and market indicators as of early February 2026 are:

• 52-week low price: Rs.31.25
• 52-week high price: Rs.59.69
• 1-year stock return: -41.06%
• Sensex 1-year return: +3.92%
• Average ROE: 6.25%
• Recent ROE: 7.4%
• Net sales growth (annual): 4.69%
• Operating profit growth (annual): 4.44%
• Debt-equity ratio (half-year): 5.45 times
• PBT less other income (quarterly): Rs.5.46 crore
• Price to Book Value: 0.9
• PEG ratio: 1.8
• Mojo Score: 26.0 (Strong Sell)

These figures illustrate the challenges faced by Sakthi Finance Ltd in maintaining growth and profitability, which have been reflected in the stock’s recent price performance and rating adjustments.

Conclusion

The fall of Sakthi Finance Ltd to a 52-week low of Rs.31.25 underscores the company’s ongoing difficulties in achieving robust financial growth and market confidence. While the stock has shown some short-term gains in the last two days, the broader trend remains subdued with valuations reflecting the company’s current financial standing and sector challenges.

Investors and market participants continue to monitor the company’s financial metrics, leverage levels, and valuation relative to peers as key indicators of its market positioning within the NBFC sector.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →