Saraswati Saree Depot Ltd Hits All-Time Low Amidst Prolonged Underperformance

Stock Price and Market Performance Overview

The stock closed with a day change of -1.97%, underperforming the Sensex which declined by -0.45% on the same day. Over the past week, Saraswati Saree Depot Ltd’s share price has fallen by -4.24%, compared to the Sensex’s -0.90%. The downward trend has intensified over longer periods, with the stock declining -9.57% in one month and -18.39% over three months, while the Sensex posted modest gains of 2.42% and 1.77% respectively during these intervals.

Most notably, the stock has delivered a negative return of -44.71% over the last year, in stark contrast to the Sensex’s positive return of 7.53%. Year-to-date performance also remains subdued at -9.21% versus the Sensex’s -2.75%. Over three and five years, Saraswati Saree Depot Ltd has shown no appreciable growth in share price, registering 0.00% returns, while the Sensex has surged by 36.71% and 66.44% respectively. The ten-year comparison further highlights the stock’s stagnation, with no gains recorded against the Sensex’s substantial 244.42% rise.

Technical Indicators and Dividend Yield

Technically, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. Despite this, the company offers a relatively high dividend yield of 5.2% at the current price level, which may be of interest to income-focused investors.

Financial Performance and Valuation Metrics

Despite the stock’s price weakness, Saraswati Saree Depot Ltd has demonstrated some positive financial results. The company reported its highest quarterly net sales at ₹208.39 crores and a peak PBDIT of ₹14.06 crores in the September 2025 quarter. Profit before tax excluding other income also reached a quarterly high of ₹12.36 crores during the same period.

The company’s return on equity (ROE) stands at a robust 16.84%, reflecting strong management efficiency. Additionally, the firm maintains a low average debt-to-equity ratio of zero, indicating a debt-free capital structure. The price-to-book value ratio is 1.5, suggesting a valuation that some may consider attractive relative to its earnings and asset base.

Long-Term Growth and Sector Comparison

However, the company’s long-term growth metrics reveal a more subdued picture. Net sales have grown at an annual rate of just 1.00% over the past five years, while operating profit has increased at a modest 6.45% annually. This slow growth trajectory has contributed to the stock’s underperformance relative to the BSE500 index over one year, three months, and three years.

Within the Garments & Apparels sector, Saraswati Saree Depot Ltd’s recent performance has lagged behind peers, despite outperforming the sector by 1.7% on the day of the latest trading session. The majority shareholding remains with promoters, maintaining a stable ownership structure.

Mojo Score and Rating Update

MarketsMOJO assigns Saraswati Saree Depot Ltd a Mojo Score of 53.0, placing it in the ‘Hold’ category. This represents an upgrade from a previous ‘Sell’ rating as of 11 November 2025. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status within the Garments & Apparels sector.

The rating upgrade is supported by the company’s strong management efficiency and recent peak quarterly financials, despite the stock’s ongoing price weakness and limited growth over the medium to long term.

Summary of Key Metrics

To summarise, Saraswati Saree Depot Ltd’s stock has reached an all-time low, trading near its 52-week bottom. The share price has underperformed significantly against the Sensex and sector benchmarks across multiple time frames. While the company exhibits strong return on equity, a debt-free balance sheet, and a high dividend yield, its long-term sales and profit growth remain modest. The recent upgrade to a ‘Hold’ rating by MarketsMOJO reflects these mixed signals.

The stock’s technical indicators and price trends suggest continued caution, with the share price below all major moving averages. Investors analysing this stock will note the contrast between solid financial fundamentals and subdued market performance over recent years.

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