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

Stock Price Movement and Market Context

On 2 February 2026, Saraswati Saree Depot Ltd’s stock declined by 5.38%, sharply underperforming the Sensex which fell by only 0.17% on the same day. The stock touched an intraday low of Rs 65.1, just 0.69% above its 52-week low of Rs 65, signalling a critical point in its price trajectory. This decline followed two consecutive days of gains, indicating a reversal in short-term momentum.

The stock’s performance over various time frames highlights a challenging environment. Over the past month, the share price has dropped 19.00%, compared to a 6.04% decline in the Sensex. The three-month performance shows a 24.22% fall against the Sensex’s 4.00% drop. Most notably, the stock has delivered a negative return of 44.53% over the last year, while the Sensex gained 3.97% during the same period.

Year-to-date, Saraswati Saree Depot Ltd has declined 16.46%, underperforming the Sensex’s 5.44% fall. Over longer horizons, the stock has failed to generate any returns over three, five, and ten years, contrasting sharply with the Sensex’s robust gains of 34.46%, 61.82%, and 228.39% respectively.

Technical Indicators and Dividend Yield

Technically, the stock is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – underscoring a bearish trend. The stock also underperformed its sector by 4.29% on the day of the decline. Despite the price weakness, Saraswati Saree Depot Ltd offers a relatively high dividend yield of 5.42% at the current price, which may be of interest to income-focused investors.

Financial Performance and Valuation Metrics

Despite the stock’s price decline, Saraswati Saree Depot Ltd reported its highest quarterly net sales of Rs 208.39 crore and a PBDIT of Rs 14.06 crore in the September 2025 quarter. Profit before tax excluding other income also reached a quarterly peak of Rs 12.36 crore. These figures indicate some operational strength amid the broader price weakness.

The company maintains a strong return on equity (ROE) of 16.84%, reflecting efficient management of shareholder capital. Its debt-to-equity ratio remains low, averaging zero, which suggests a conservative capital structure with minimal leverage risk. The stock’s price-to-book value stands at 1.4, indicating a valuation that may be considered attractive relative to its book value.

Over the past year, while the stock price has declined by 44.53%, the company’s profits have increased by 4%, highlighting a disconnect between market valuation and earnings growth. The majority shareholding remains with promoters, indicating stable ownership.

Long-Term Growth and Comparative Performance

Long-term growth metrics reveal subdued expansion. Net sales have grown at an annual rate of just 1.00% over the last 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 the last three years, one year, and three months.

The stock’s inability to generate positive returns over extended periods contrasts with the broader market’s robust gains, underscoring the challenges faced by Saraswati Saree Depot Ltd in delivering sustained shareholder value.

Mojo Score and Market Capitalisation

Saraswati Saree Depot Ltd holds a Mojo Score of 53.0, which corresponds to a Mojo Grade of Hold as of 11 November 2025, upgraded from a previous Sell rating. The company’s market capitalisation grade is 4, reflecting its standing within the market capitalisation spectrum.

The stock’s recent price action and fundamental metrics present a complex picture, with pockets of financial strength amid a backdrop of price weakness and limited growth. The high dividend yield of 5.42% at current prices remains a notable feature.

Summary of Key Metrics

To summarise, Saraswati Saree Depot Ltd’s stock has reached an all-time low, closing near Rs 65, with a day’s decline of 5.38%. The stock has underperformed the Sensex and its sector consistently across multiple time frames, including a 44.53% loss over the past year. Despite this, the company has demonstrated strong management efficiency with a ROE of 16.84%, low leverage, and record quarterly sales and profits in September 2025. The valuation remains modest with a price-to-book ratio of 1.4 and a dividend yield exceeding 5%.

Long-term growth remains subdued, with net sales and operating profits growing at low annual rates over five years. The stock’s performance relative to broader market indices and sector peers has been below par, reflecting the challenges faced in achieving sustained capital appreciation.

Conclusion

The all-time low in Saraswati Saree Depot Ltd’s stock price marks a significant milestone in its market journey, reflecting a combination of limited growth, valuation pressures, and broader market dynamics. The company’s financial metrics reveal areas of strength, particularly in profitability and capital structure, yet these have not translated into positive stock price performance over recent years.

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