Recent Price Movement and Market Context
On the day in question, Saraswati Saree Depot Ltd’s stock price fell by 1.01%, continuing a four-day losing streak that has resulted in a cumulative decline of 6.57%. This downward trend has pushed the share price below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. The new low of Rs.60.01 contrasts sharply with the stock’s 52-week high of Rs.108.16, underscoring the extent of the decline over the past year.
The broader market environment has also been subdued. The Sensex opened 242.12 points lower and closed down by 508.85 points at 82,543.69, a 0.9% drop. Despite this, the Sensex remains within 4.38% of its 52-week high of 86,159.02, indicating relative resilience compared to Saraswati Saree Depot Ltd’s performance. The Sensex is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, suggesting mixed signals for the broader market.
Financial Performance and Growth Trends
The company’s financial metrics reveal a subdued growth trajectory. Over the last five years, net sales have increased at an annual rate of just 1.00%, while operating profit has grown at a modest 6.45%. More recently, quarterly results have shown notable declines. The latest quarter reported a Profit After Tax (PAT) of Rs.3.21 crore, down 59.6% compared to the average of the previous four quarters. Net sales for the quarter stood at Rs.144.47 crore, falling 14.0% against the prior four-quarter average. Operating profit before depreciation and interest (PBDIT) reached a low of Rs.4.75 crore, marking the weakest quarterly performance in recent periods.
Our current monthly pick, this Mid Cap from Automobile Two & Three Wheelers, survived rigorous evaluation against dozens of contenders. See why experts are backing this one!
- - Rigorous evaluation cleared
- - Expert-backed selection
- - Mid Cap conviction pick
Comparative Performance and Market Position
Over the past year, Saraswati Saree Depot Ltd has delivered a total return of -38.82%, significantly underperforming the Sensex, which posted a positive return of 10.83% over the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, highlighting persistent challenges in maintaining competitive performance within the broader market.
The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, downgraded from Hold on 11 Nov 2025. This reflects a reassessment of the stock’s prospects based on recent financial results and market behaviour. The Market Cap Grade is rated 4, indicating a mid-tier market capitalisation relative to peers in the Garments & Apparels sector.
Balance Sheet and Efficiency Metrics
Despite the subdued top-line and profit trends, Saraswati Saree Depot Ltd exhibits strengths in management efficiency and financial prudence. The company maintains a high Return on Equity (ROE) of 16.84%, signalling effective utilisation of shareholder funds. Additionally, the average Debt to Equity ratio remains at zero, indicating a debt-free capital structure that reduces financial risk.
Valuation metrics also suggest an attractive price point relative to book value, with a Price to Book ratio of 1.4 and an ROE of 14.4% noted in recent assessments. While profits have risen by 4% over the past year, this has not translated into share price appreciation, reflecting market concerns over growth sustainability and near-term earnings pressure.
Why settle for Saraswati Saree Depot Ltd? SwitchER evaluates this Garments & Apparels micro-cap against peers, other sectors, and market caps to find you superior investment opportunities!
- - Comprehensive evaluation done
- - Superior opportunities identified
- - Smart switching enabled
Shareholding and Sectoral Context
The majority shareholding in Saraswati Saree Depot Ltd is held by promoters, providing a stable ownership base. The company operates within the Garments & Apparels industry, a sector that has experienced mixed performance amid evolving consumer preferences and competitive pressures.
While the stock’s recent decline to Rs.60.01 marks a significant low point, it is important to note that the broader sector and market indices have not mirrored this level of weakness, suggesting company-specific factors have played a key role in the share price movement.
Summary of Key Metrics
To encapsulate, Saraswati Saree Depot Ltd’s stock has reached a new 52-week low of Rs.60.01 after a sustained period of price decline. The company’s financial results reveal subdued sales growth and a sharp drop in quarterly profits, contributing to the negative market sentiment. Despite strong management efficiency and a debt-free balance sheet, the stock’s performance has lagged behind sector and market benchmarks over multiple time frames.
The downgrade to a Sell grade and the low Mojo Score reflect these challenges, while valuation metrics indicate the stock is trading at a relatively modest premium to book value. The shareholding structure remains concentrated with promoters, and the company continues to operate in a competitive garments and apparel sector.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
