Stock Price Movement and Market Context
On the day in question, Saraswati Saree Depot Ltd’s stock price fell by 1.19%, underperforming its sector by 0.45%. This decline extended a losing streak spanning four consecutive trading sessions, during which the stock has shed approximately 4.6% of its value. The new low of Rs.65 represents a substantial drop from its 52-week high of Rs.128, reflecting a year-long depreciation of 43.39% against the Sensex’s positive return of 7.41% over the same period.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This contrasts with the broader market environment where the Sensex opened higher at 82,459.66 points, gaining 0.67% before retreating slightly to 82,059.27 points, still up 0.18% on the day. Notably, the Sensex has experienced a three-week consecutive decline, losing 4.32%, while mid-cap stocks have shown relative strength with the BSE Mid Cap index rising 0.81%.
Financial Performance and Valuation Metrics
Despite the stock’s recent price weakness, Saraswati Saree Depot Ltd maintains several positive financial attributes. 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. Profit before tax excluding other income also reached a quarterly peak of Rs.12.36 crores during this period. These figures indicate operational resilience amid challenging market conditions.
The company’s return on equity (ROE) stands at a robust 16.84%, reflecting efficient capital utilisation. Additionally, the firm carries a low average debt-to-equity ratio of zero, underscoring a conservative capital structure. At the current price, Saraswati Saree Depot Ltd offers a dividend yield of 5.15%, which is considered attractive in the garments and apparels sector. The stock’s price-to-book value ratio is 1.5, suggesting a valuation that some may view as reasonable given the company’s fundamentals.
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Long-Term Growth and Comparative Performance
Over the past five years, Saraswati Saree Depot Ltd’s net sales have grown at a modest annual rate of 1.00%, while operating profit has increased by 6.45% annually. These growth rates are relatively subdued compared to industry peers, contributing to the stock’s underperformance. The company’s returns have lagged behind the BSE500 index over the last three years, one year, and three months, indicating challenges in maintaining competitive momentum.
The stock’s Mojo Score currently stands at 53.0, with a Mojo Grade of Hold, upgraded from a previous Sell rating on 11 Nov 2025. The Market Cap Grade is rated 4, reflecting its micro-cap status within the garments and apparels sector. Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.
Sector and Market Dynamics
The garments and apparels sector has experienced mixed performance recently, with some segments showing resilience while others face headwinds. Saraswati Saree Depot Ltd’s stock has underperformed its sector peers, which have generally fared better amid the current market environment. The company’s share price decline contrasts with the mid-cap segment’s relative strength, highlighting sectoral and stock-specific factors influencing investor sentiment.
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Summary of Key Metrics
To summarise, Saraswati Saree Depot Ltd’s stock has reached a new 52-week low of Rs.65, reflecting a significant decline from its peak of Rs.128 within the last year. The stock’s performance has been weighed down by subdued long-term growth rates and underperformance relative to broader market indices and sector peers. However, the company’s strong ROE, zero debt, and attractive dividend yield provide a degree of financial stability amid the price weakness.
Market conditions remain mixed, with the Sensex showing signs of volatility and mid-cap stocks outperforming. Saraswati Saree Depot Ltd’s share price remains below all major moving averages, indicating continued downward pressure in the near term.
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