Saraswati Saree Depot Ltd Gains 11.25%: 5 Key Factors Driving the Week's Recovery

Feb 07 2026 09:02 AM IST
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Saraswati Saree Depot Ltd’s stock rebounded strongly this week, gaining 11.25% from Rs.67.12 to Rs.74.67, significantly outperforming the Sensex’s modest 1.51% rise. The week was marked by a sharp recovery from a 52-week low and all-time lows hit on 2 February, supported by robust quarterly financials and a shift in market sentiment. Despite early weakness, the stock demonstrated resilience, closing the week near its highest levels since the recent lows.

Key Events This Week

2 Feb: Stock hits 52-week low of Rs.63.2 and all-time low near Rs.65.1

3 Feb: Sharp rebound with 6.46% gain to Rs.68.11

4 Feb: Continued rally, rising 5.05% to Rs.71.55

5 Feb: Minor pullback of 1.06% to Rs.70.79

6 Feb: Strong finish with 5.48% gain to Rs.74.67

Week Open
Rs.67.12
Week Close
Rs.74.67
+11.25%
Week High
Rs.74.67
vs Sensex
+9.74%

2 February: Stock Hits 52-Week and All-Time Lows Amid Sector Weakness

On Monday, Saraswati Saree Depot Ltd’s shares plunged to a 52-week low of Rs.63.2 and an all-time low near Rs.65.1, closing at Rs.63.98, down 4.68%. This sharp decline reflected sustained selling pressure and underperformance relative to the Sensex, which fell 1.03% that day. Intraday lows of Rs.63.2 and Rs.65.1 underscored the stock’s vulnerability amid broader sector weakness in garments and apparels.

Despite the price drop, the company’s recent quarterly results painted a more positive picture. Net sales reached a record Rs.208.39 crores in September 2025, with PBDIT peaking at Rs.14.06 crores. The firm’s return on equity stood at a healthy 16.84%, and its dividend yield remained attractive at 5.42%. However, these fundamentals failed to provide immediate support as the stock traded below all key moving averages, signalling bearish technical momentum.

3 February: Sharp Rebound on Positive Market Sentiment

Following the steep decline, the stock rebounded strongly on Tuesday, gaining 6.46% to close at Rs.68.11. This recovery outpaced the Sensex’s 2.63% gain, reflecting renewed investor interest. The bounce was likely driven by recognition of the company’s solid financial metrics and the attractive valuation at a price-to-book ratio of 1.4. Volume remained robust at 8,088 shares, supporting the price recovery.

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4 February: Continued Uptrend Amid Market Stability

The upward momentum extended into Wednesday, with the stock rising 5.05% to Rs.71.55. This gain was achieved on moderate volume of 7,317 shares and accompanied by a modest Sensex increase of 0.37%. The stock’s recovery from its lows suggested improving investor confidence, supported by the company’s conservative capital structure and consistent profitability. The stock remained below its 200-day moving average but showed signs of short-term technical strength.

5 February: Minor Pullback on Lower Volume

Thursday saw a slight correction, with the stock slipping 1.06% to Rs.70.79 on reduced volume of 2,339 shares. The Sensex also declined 0.53%, reflecting a cautious market mood. This minor pullback was a natural consolidation after two days of strong gains, with no significant news impacting the stock. The price remained well above the week’s lows, indicating sustained underlying support.

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6 February: Strong Finish to the Week

Friday closed the week on a positive note, with Saraswati Saree Depot Ltd gaining 5.48% to Rs.74.67, its highest close of the week. Volume surged to 9,958 shares, signalling renewed buying interest. The Sensex edged up 0.10%, but the stock’s outperformance was notable. This strong finish capped a week of recovery from significant lows, highlighting the stock’s resilience despite earlier setbacks.

Date Stock Price Day Change Sensex Day Change
2026-02-02 Rs.63.98 -4.68% 35,814.09 -1.03%
2026-02-03 Rs.68.11 +6.46% 36,755.96 +2.63%
2026-02-04 Rs.71.55 +5.05% 36,890.21 +0.37%
2026-02-05 Rs.70.79 -1.06% 36,695.11 -0.53%
2026-02-06 Rs.74.67 +5.48% 36,730.20 +0.10%

Key Takeaways

Saraswati Saree Depot Ltd’s week was characterised by a dramatic turnaround from a 52-week and all-time low to a strong rally, outperforming the Sensex by nearly 10 percentage points. The initial weakness on 2 February reflected broader sector pressures and technical bearishness, with the stock trading below all major moving averages. However, the company’s robust quarterly financials, including record net sales of Rs.208.39 crores and a PBDIT of Rs.14.06 crores, provided a fundamental underpinning for the recovery.

The stock’s attractive dividend yield of 5.42% and conservative debt profile further supported investor confidence. Despite the strong weekly gains, the stock remains below its 52-week high and faces challenges in sustaining long-term growth, as reflected in modest annual sales growth of 1.00% over five years. The MarketsMOJO Mojo Grade of ‘Hold’ with a score of 53.0 reflects this balanced outlook, acknowledging both the company’s strengths and the risks from prolonged underperformance.

Volume trends during the week suggest that the rally was supported by genuine buying interest rather than speculative spikes, with the highest volumes recorded on the final day. The minor pullback on 5 February was a healthy consolidation within an overall positive trend.

Conclusion

The week ending 6 February 2026 marked a significant recovery phase for Saraswati Saree Depot Ltd, with the stock gaining 11.25% and outperforming the broader market. The rebound from multi-year lows was driven by strong quarterly results and improved market sentiment. However, the stock’s technical position remains cautious, and its long-term growth trajectory is modest. Investors should note the company’s solid fundamentals and attractive dividend yield, balanced against the challenges of sector headwinds and past underperformance. The ‘Hold’ rating by MarketsMOJO encapsulates this nuanced view, suggesting a watchful stance as the stock navigates its recovery path.

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