Price Movement and Market Context
On 29 Jan 2026, Sakthi Finance’s stock price reached Rs.32.5, the lowest level recorded in the past 52 weeks. This follows six consecutive days of declines, although the stock showed a modest gain today, rising marginally by 0.06%. Despite this slight uptick, the share remains substantially below its 52-week high of Rs.59.69, representing a decline of approximately 45.6% from that peak.
The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a persistent bearish trend. In contrast, the broader market, as measured by the Sensex, is trading positively, up 0.27% at 82,566.37 points, and is only 4.35% away from its own 52-week high of 86,159.02. This divergence highlights the relative weakness of Sakthi Finance compared to the overall market and its sector peers.
Financial Performance and Valuation Metrics
Over the last year, Sakthi Finance has delivered a total return of -42.62%, significantly underperforming the Sensex’s 7.88% gain over the same period. The company’s long-term financial indicators have also been subdued. Its average Return on Equity (ROE) stands at 6.25%, reflecting modest profitability relative to equity capital. Net sales have grown at an annualised rate of 4.69%, while operating profit has increased by 4.44% annually, indicating slow growth momentum.
In the most recent quarterly results, the company reported a Profit Before Tax excluding other income (PBT less OI) of Rs.5.46 crores, which is among the lowest quarterly figures recorded. The debt-equity ratio remains elevated at 5.45 times, underscoring a high leverage position that may constrain financial flexibility.
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Sector and Peer Comparison
Within the Non Banking Financial Company (NBFC) sector, Sakthi Finance’s valuation metrics present a mixed picture. The stock trades at a Price to Book Value (P/BV) of 0.9, which is below the average historical valuations of its peers, suggesting a discount in market pricing. Its ROE of 7.4% is marginally higher than the longer-term average but remains modest in absolute terms.
Despite the subdued price performance, the company’s profits have increased by 6.9% over the past year. However, the Price/Earnings to Growth (PEG) ratio stands at 1.8, indicating that earnings growth is not sufficiently robust to justify higher valuations at present.
Shareholding and Market Sentiment
The majority shareholding in Sakthi Finance remains with the promoters, reflecting concentrated ownership. The company’s Mojo Score is 26.0, with a Mojo Grade of Strong Sell as of 8 Jan 2026, downgraded from a Sell rating. This grading reflects the assessment of weak long-term fundamentals and below-par financial performance relative to sector benchmarks.
In terms of market capitalisation, the company holds a Market Cap Grade of 4, indicating a micro-cap status with limited liquidity and market depth compared to larger NBFCs.
Recent Trends and Technical Indicators
Technically, the stock’s position below all major moving averages signals continued downward pressure. The recent trend reversal, with a slight gain after six days of losses, may represent a short-term pause rather than a sustained recovery. The broader market’s positive momentum, led by mega-cap stocks, contrasts with Sakthi Finance’s ongoing weakness.
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Long-Term Performance and Outlook
Over a three-year horizon, Sakthi Finance has consistently underperformed the BSE500 index, reflecting persistent challenges in generating shareholder value. The stock’s negative returns over one year and three months further underscore the subdued investor sentiment and cautious market positioning.
While the company’s valuation metrics suggest it is trading at a discount relative to peers, the combination of modest profitability, high leverage, and slow growth rates has weighed on its market performance. The recent flat results reported in September 2025 did not provide a catalyst for price improvement.
Overall, Sakthi Finance’s current share price at Rs.32.5 represents a significant correction from its previous highs, reflecting a complex interplay of financial metrics, market dynamics, and sectoral factors.
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