Saraswati Saree Depot Ltd Falls 6.48%: 7 Key Factors Driving the Downtrend

Jan 19: Stock Hits New 52-Week and All-Time Lows Amid Sector Weakness

On 19 January 2026, Saraswati Saree Depot Ltd’s stock price plunged to a fresh 52-week low of Rs.70.1 and an all-time low of Rs.70.51. The stock closed at Rs.71.12, down 1.70% for the day, underperforming the Sensex’s 0.49% decline. This marked a continuation of a downward trend that saw the stock fall sharply from its 52-week high of Rs.128. The broader garments and apparels sector faced headwinds, and the stock traded below all key moving averages, signalling sustained bearish momentum.

Despite the price weakness, the company reported its highest quarterly net sales of Rs.208.39 crores and a PBDIT of Rs.14.06 crores in the September 2025 quarter. The return on equity remained robust at 16.84%, and the dividend yield was attractive at 5.11%. However, these fundamentals failed to support the share price amid negative market sentiment.

Jan 20: Further Decline to Rs.69.72 Amid Market Volatility

The downtrend continued on 20 January as the stock fell to Rs.69.72, marking another 52-week and all-time low. The stock closed at Rs.69.82, down 1.83%, while the Sensex declined 1.82%. The stock slightly outperformed its sector on the day but remained under pressure technically, trading below all major moving averages. The company’s financial metrics remained steady, with a dividend yield rising slightly to 5.2% and a price-to-book ratio of 1.5, indicating a valuation that some investors might find attractive despite the price fall.

Jan 21: Stock Drops to Rs.67.08 Despite Sensex Recovery

On 21 January, Saraswati Saree Depot Ltd’s shares declined further to Rs.67.08, marking a fresh 52-week and all-time low. The stock lost 1.00% intraday and closed down 1.39%, underperforming its sector by 1.71%. Notably, the Sensex rebounded 0.19% on the day, highlighting the stock’s relative weakness. The company’s financial fundamentals remained consistent, with a high dividend yield of 5.31% and a strong ROE of 16.84%. However, the stock’s technical position remained weak, trading below all key moving averages and continuing a three-day losing streak.

Jan 22: New Low of Rs.65 Amidst Prolonged Downtrend

The downtrend intensified on 22 January as the stock hit Rs.65, its lowest level in over a year and an all-time low. This represented a 5.96% gap down from the previous close and marked the fourth consecutive day of decline, with a cumulative loss of 10.16%. The stock underperformed the broader garments and apparels sector by 6.25% on the day. Despite the negative price action, the company’s recent quarterly results remained strong, with record net sales and profits. The dividend yield stood at 5.15%, and the price-to-book ratio was 1.5, suggesting the stock was trading at a moderate premium to book value despite the price weakness.

Jan 23: Week Closes at Rs.67.66 on Continued Weakness

The week ended on 23 January with Saraswati Saree Depot Ltd closing at Rs.67.66, down 1.50% on the day and marking a 6.48% decline for the week. The Sensex also fell 1.33% on the day but outperformed the stock’s weekly loss. Trading volume increased to 2,478 shares, reflecting heightened activity amid the stock’s continued downtrend. The company’s fundamentals, including a strong ROE of 16.84%, zero debt, and a dividend yield above 5%, remain intact but have not translated into price support. The stock’s Mojo Score stands at 53.0 with a ‘Hold’ grade, reflecting a cautious market stance.

Key Takeaways

Persistent Downtrend: Saraswati Saree Depot Ltd’s stock experienced a sustained decline throughout the week, hitting multiple 52-week and all-time lows. The stock underperformed the Sensex by approximately 3.17% over the week, reflecting weak investor sentiment and sectoral pressures.

Strong Financial Fundamentals Amid Price Weakness: Despite the price decline, the company reported record quarterly net sales of Rs.208.39 crores and PBDIT of Rs.14.06 crores. The return on equity remains robust at 16.84%, and the dividend yield is attractive at over 5%, supported by a debt-free capital structure.

Technical Weakness: The stock traded below all major moving averages (5-day to 200-day), signalling bearish momentum and limited short-term support. The four consecutive days of decline culminating in a 10.16% loss highlight the technical challenges facing the stock.

Valuation and Market Ratings: The price-to-book ratio of 1.5 suggests moderate valuation relative to book value. The Mojo Score of 53.0 and a ‘Hold’ grade indicate a cautious stance, balancing the company’s operational strengths against its price underperformance.

Sector and Market Context: The garments and apparels sector faced headwinds during the week, with the stock underperforming its sector peers. The broader market also declined, but the stock’s losses were more severe, reflecting company-specific challenges.

Conclusion

Saraswati Saree Depot Ltd’s share price decline of 6.48% over the week ending 23 January 2026 highlights a period of sustained weakness amid broader market and sectoral pressures. The stock’s multiple 52-week and all-time lows underscore the challenges in regaining investor confidence despite strong quarterly financial results, a high dividend yield, and a conservative capital structure. Technical indicators remain bearish, with the stock trading below all key moving averages and experiencing consecutive days of losses. The Mojo Grade of ‘Hold’ reflects a balanced view of the company’s fundamentals against its recent price underperformance. Investors should note the stock’s relative weakness compared to the Sensex and sector peers as the company navigates a difficult market environment.

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