Recent Price Movement and Market Context
On 24 Nov 2025, Sakthi Finance's share price touched an intraday low of Rs.39.05, representing a 6.38% decline during the trading session. This level marks the lowest price point for the stock in the past year, underscoring a continuation of recent negative momentum. Over the last two trading days, the stock has recorded a cumulative return of -5.77%, signalling persistent selling pressure.
The stock's performance today lagged behind its sector peers by 3.94%, indicating relative weakness within the Non Banking Financial Company (NBFC) sector. Furthermore, Sakthi Finance is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, which often serve as technical indicators of trend direction and investor sentiment.
Comparison with Broader Market Indices
While Sakthi Finance has been on a downward trajectory, the broader market has shown resilience. The Sensex opened higher at 85,320.04 points, gaining 88.12 points or 0.1%, and was trading near 85,304.79 points at the time of reporting. The index is approximately 0.58% below its 52-week high of 85,801.70 points and has experienced a three-week consecutive rise, accumulating a gain of 2.51% over this period. Mega-cap stocks have been leading the market rally, contrasting with the challenges faced by smaller NBFC stocks such as Sakthi Finance.
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Long-Term Performance and Financial Metrics
Over the past year, Sakthi Finance has recorded a negative return of 30.69%, a stark contrast to the Sensex's positive return of 7.82% during the same period. The stock's 52-week high was Rs.73.50, indicating a substantial decline from that peak to the current low of Rs.39.05.
Financially, the company has exhibited modest growth in net sales and operating profit, with annual rates of 4.69% and 4.44% respectively. However, these figures have not translated into robust returns for shareholders. The average Return on Equity (ROE) stands at 6.25%, which is considered subdued for the sector. The company's debt-equity ratio at the half-year mark is notably high at 5.45 times, reflecting a leveraged capital structure that may contribute to investor caution.
Profit before tax excluding other income (PBT less OI) for the quarter was reported at Rs.5.46 crores, marking a low point in recent quarterly results. These financial indicators collectively suggest challenges in generating strong profitability and growth momentum.
Valuation and Peer Comparison
Despite the subdued performance, Sakthi Finance's valuation metrics present some points of interest. The company’s Price to Book Value ratio is approximately 1.2, which is lower than the historical averages observed among its peers in the NBFC sector. This suggests that the stock is trading at a discount relative to comparable companies.
Additionally, the company’s ROE for the latest period is recorded at 7.4%, slightly higher than its longer-term average, while profits have shown a 6.9% rise over the past year. The Price/Earnings to Growth (PEG) ratio stands at 2.3, indicating the relationship between valuation and earnings growth expectations.
Shareholding and Sector Position
Sakthi Finance operates within the NBFC sector, which has experienced varied performance across different market caps and segments. The majority shareholding remains with promoters, maintaining concentrated ownership. The company's market capitalisation grade is relatively low at 4, reflecting its micro-cap status within the sector.
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Summary of Key Concerns
The stock’s decline to Rs.39.05 reflects a combination of factors including underwhelming returns over the past year, a leveraged balance sheet, and earnings that have not kept pace with sector expectations. The persistent trading below all major moving averages signals a lack of upward momentum in the near term. Furthermore, the stock’s underperformance relative to the BSE500 index over one, three years, and three months highlights ongoing challenges in maintaining competitive growth and profitability.
While the broader market and Sensex have demonstrated resilience and gains, Sakthi Finance’s trajectory has diverged, underscoring sector-specific and company-specific pressures that have influenced investor sentiment and price action.
Conclusion
Sakthi Finance’s fall to a 52-week low of Rs.39.05 marks a significant milestone in its recent market journey. The stock’s performance, financial metrics, and valuation present a complex picture of subdued growth, elevated leverage, and discounted pricing relative to peers. These factors have contributed to the stock’s current position within the NBFC sector and its relative standing in the broader market environment.
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