Saraswati Saree Depot Ltd Hits All-Time Low Amid Prolonged Downtrend

Recent Price Movement and Market Context

The stock declined by 1.20% on the day, underperforming the Sensex which fell by 0.71%. This drop extended a three-day losing streak during which Saraswati Saree Depot Ltd’s shares have fallen by 5.34%. Over the past week, the stock has declined 6.65%, compared to the Sensex’s 2.54% fall, and over the last month, it has dropped 5.80% versus the Sensex’s 1.28% decline. The three-month performance is particularly stark, with the stock down 15.11% while the Sensex gained 1.72% in the same period.

The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum. Despite this, the stock marginally outperformed its sector on the day by 0.41%, indicating some relative resilience within the Garments & Apparels sector.

Long-Term Performance and Valuation Metrics

Over the past year, Saraswati Saree Depot Ltd’s stock has delivered a negative return of 40.78%, a stark contrast to the Sensex’s positive 7.68% gain. The stock has also failed to generate any returns over the last three and five years, remaining flat at 0.00%, while the Sensex has surged 37.59% and 71.34% respectively over these periods. The ten-year performance similarly shows no appreciation, with the stock unchanged against the Sensex’s 235.21% rise.

Despite the share price weakness, the company maintains a high dividend yield of 4.94% at the current price level, which is notable in the context of its valuation. The Price to Book Value ratio stands at a modest 1.6, reflecting a valuation that some may consider attractive relative to its earnings and asset base.

Financial Performance Highlights

In the quarter ending September 2025, Saraswati Saree Depot Ltd reported its highest net sales to date at Rs.208.39 crores. Profitability metrics also reached record quarterly highs with PBDIT at Rs.14.06 crores and PBT less other income at Rs.12.36 crores. These figures represent a 4% increase in profits over the past year, despite the stock’s declining market value.

The company’s return on equity (ROE) remains robust at 16.84%, indicating efficient use of shareholder capital. Additionally, the firm’s average debt to equity ratio is effectively zero, underscoring a conservative capital structure with minimal leverage.

Growth Trends and Sector Comparison

While the company has demonstrated some positive quarterly results, its long-term growth trajectory remains subdued. Net sales have grown at an annualised rate of just 1.00% over the last five years, and operating profit has increased at a modest 6.45% annually during the same period. This slow growth contrasts with the broader Garments & Apparels sector, which has generally experienced more dynamic expansion.

The stock’s underperformance relative to the BSE500 index is evident across multiple time frames, including the last three months, one year, and three years. This underperformance highlights the challenges the company faces in delivering shareholder returns comparable to broader market benchmarks.

Shareholding and Market Perception

The majority shareholding remains with the promoters, indicating stable ownership. The company’s Mojo Score stands at 53.0, with a Mojo Grade of Hold as of 11 Nov 2025, upgraded from a previous Sell rating. The Market Cap Grade is 4, reflecting a mid-tier market capitalisation within its sector.

Summary of Current Position

Saraswati Saree Depot Ltd’s stock is currently positioned at a historic low price point, reflecting a combination of subdued long-term growth, recent negative returns, and sustained downward price momentum. Despite these factors, the company’s financial metrics such as ROE, dividend yield, and debt levels remain relatively strong, providing a nuanced picture of its current standing within the Garments & Apparels sector.

Performance Metrics in Detail

The stock’s performance relative to the Sensex and sector indices over various periods underscores the challenges faced by Saraswati Saree Depot Ltd. The year-to-date return is -3.72%, compared to the Sensex’s -1.92%. Over one month and three months, the stock’s losses of 5.80% and 15.11% respectively contrast with the Sensex’s modest declines and gains, highlighting the stock’s relative weakness.

Despite the recent price declines, the company’s high dividend yield of 4.94% at the current price level offers a degree of income return to shareholders. The low debt to equity ratio further indicates a conservative financial structure, which may provide some stability amid market volatility.

Conclusion

Saraswati Saree Depot Ltd’s stock reaching an all-time low of Rs.74.05 reflects a period of sustained price weakness and underperformance relative to market benchmarks. While the company’s financial fundamentals such as ROE, dividend yield, and debt levels remain sound, the subdued long-term growth and recent negative returns have weighed on investor sentiment. The stock’s position below all major moving averages further emphasises the prevailing downtrend in the share price.

As of 9 Jan 2026, Saraswati Saree Depot Ltd remains a notable case within the Garments & Apparels sector for its contrasting financial metrics and market performance.

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