Stock Price Movement and Market Context
On 21 Jan 2026, Sakthi Finance Ltd opened sharply lower by 3.28%, continuing a two-day losing streak that has resulted in a cumulative decline of 10.09%. The stock’s intraday low of Rs.33 represents its lowest level in the past year, down from a 52-week high of Rs.61. This drop coincides with a broader market weakness, as the Sensex fell by 503.35 points (-1.08%) to 81,291.30, marking its third consecutive week of losses with a cumulative decline of 5.21%.
The stock underperformed its NBFC sector peers by 4.69% on the day, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning highlights the sustained downward momentum in Sakthi Finance’s share price.
Financial Performance and Valuation Metrics
Sakthi Finance’s financial indicators reveal a challenging environment. The company’s long-term fundamentals remain subdued, with an average Return on Equity (ROE) of 6.25%, which is modest for the NBFC sector. Net sales have grown at an annualised rate of 4.69%, while operating profit has increased by 4.44% annually, indicating limited growth traction.
Recent quarterly results showed flat performance, 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, reflecting a high leverage position that may weigh on financial flexibility.
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Comparative Performance and Market Position
Over the past year, Sakthi Finance has delivered a total return of -42.43%, significantly underperforming the Sensex, which gained 7.31% over the same period. The stock has also lagged behind the broader BSE500 index across multiple timeframes including the last three years, one year, and three months.
Despite the weak price performance, the company’s valuation metrics suggest a degree of market discount. With a Price to Book Value ratio of 1, Sakthi Finance trades at a valuation lower than its peers’ historical averages. The company’s ROE of 7.4% and a PEG ratio of 2 indicate a valuation that some may consider attractive relative to its profit growth of 6.9% over the past year.
Shareholding and Sectoral Context
The majority shareholding in Sakthi Finance remains with promoters, maintaining a stable ownership structure. The NBFC sector itself has faced headwinds recently, with other indices such as NIFTY MEDIA also hitting 52-week lows on the same day, reflecting sector-wide pressures amid a cautious market environment.
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Technical and Market Indicators
The stock’s trading below all major moving averages signals a bearish technical setup. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price level of Rs.33, indicating sustained selling pressure. This technical weakness is compounded by the broader market’s negative trend, with the Sensex also trading below its 50-day moving average, although the 50DMA remains above the 200DMA, suggesting some underlying resilience in the benchmark index.
Given the stock’s recent performance and financial metrics, Sakthi Finance remains classified with a Mojo Score of 26.0 and a Mojo Grade of Strong Sell as of 8 Jan 2026, downgraded from a Sell rating earlier. The Market Cap Grade stands at 4, reflecting its relative size and liquidity considerations within the NBFC sector.
Summary of Key Metrics
To summarise, Sakthi Finance Ltd’s key data points as of 21 Jan 2026 include:
- New 52-week low price: Rs.33
- 52-week high price: Rs.61
- One-year return: -42.43%
- Debt-Equity Ratio (HY): 5.45 times
- Average ROE: 6.25%
- Net sales growth (annualised): 4.69%
- Operating profit growth (annualised): 4.44%
- PEG ratio: 2
- Mojo Score: 26.0 (Strong Sell)
- Market Cap Grade: 4
These figures illustrate the challenges faced by Sakthi Finance in maintaining growth momentum and investor confidence amid a difficult market backdrop.
Market Environment and Sectoral Trends
The NBFC sector has experienced volatility in recent months, with several stocks hitting new lows. The broader market’s cautious stance, reflected in the Sensex’s three-week decline and the NIFTY MEDIA index also touching a 52-week low, underscores the pressures on financial stocks. Sakthi Finance’s performance is consistent with this sectoral trend, compounded by its specific financial and valuation characteristics.
Conclusion
Sakthi Finance Ltd’s fall to a 52-week low of Rs.33 on 21 Jan 2026 marks a continuation of a downward trend influenced by subdued financial growth, high leverage, and broader market weakness. The stock’s valuation metrics indicate a discount relative to peers, but the technical indicators and recent performance reflect ongoing challenges. The company’s Mojo Grade of Strong Sell and a low Mojo Score further highlight the cautious stance adopted by market analysts.
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