Recent Price Movement and Market Context
On 3 December 2025, Sakthi Finance's share price touched Rs.36.51, the lowest level recorded in the past year. This new low comes after the stock experienced a three-day consecutive decline, resulting in a cumulative return of -3.41% during this period. The stock's performance today lagged behind its sector by 0.77%, signalling relative weakness within its peer group.
Technical indicators show that Sakthi Finance is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a persistent bearish momentum in the stock's price action.
Meanwhile, the broader market, represented by the Sensex, opened flat but later declined by 294.77 points, or 0.33%, closing at 84,855.87. The Sensex remains close to its 52-week high of 86,159.02, trading approximately 1.54% below that peak. Notably, the Sensex is positioned above its 50-day moving average, which itself is above the 200-day moving average, indicating a generally bullish trend for the benchmark index.
Long-Term Performance and Comparative Analysis
Over the last year, Sakthi Finance's stock has delivered a return of -36.95%, contrasting sharply with the Sensex's positive return of 4.95% over the same period. This divergence highlights the stock's underperformance relative to the broader market. Additionally, Sakthi Finance has lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, underscoring a sustained period of below-par returns.
The stock's 52-week high price stands at Rs.73.50, indicating that the current price level represents a decline of over 50% from its peak within the last year.
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Financial Metrics and Valuation Overview
Sakthi Finance's long-term financial indicators reveal modest growth and limited profitability. The company’s average Return on Equity (ROE) stands at 6.25%, reflecting restrained efficiency in generating returns from shareholders’ equity. Net sales have exhibited an annual growth rate of 4.69%, while operating profit has grown at a similar pace of 4.44% per annum. These figures suggest a relatively flat growth trajectory over the longer term.
In the most recent half-year period, the company reported a debt-to-equity ratio of 5.45 times, indicating a high level of leverage. Quarterly profit before tax (PBT) excluding other income was recorded at Rs.5.46 crore, representing one of the lower points in recent quarters.
Despite the subdued price performance, Sakthi Finance's valuation metrics present some points of interest. The company’s ROE for the latest period is noted at 7.4%, and the stock is trading at a price-to-book value of 1, which is considered attractive relative to its historical valuations and peer group. Furthermore, the stock is priced at a discount compared to the average historical valuations of its sector peers.
Profit figures over the past year have shown a rise of 6.9%, while the price-to-earnings-to-growth (PEG) ratio stands at 2, indicating a valuation that factors in the company’s earnings growth rate.
Shareholding and Sector Position
The majority shareholding in Sakthi Finance is held by promoters, maintaining a concentrated ownership structure. The company operates within the Non Banking Financial Company (NBFC) sector, which has faced varied market conditions and regulatory scrutiny in recent years.
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Summary of Recent Trends
The stock’s recent decline to Rs.36.51 marks a continuation of a downward trend that has persisted over the past year, with returns significantly trailing the broader market. The combination of subdued growth rates, elevated leverage, and below-average profitability has contributed to the stock’s current valuation and price levels.
While the broader market indices maintain a generally positive technical outlook, Sakthi Finance remains positioned below key moving averages, reflecting ongoing price pressure. The stock’s discount to peer valuations and its price-to-book ratio of 1 may be viewed as factors influencing its current market standing.
Investors and market participants will continue to monitor the company’s financial performance and sector developments as the stock navigates this low price territory.
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