Price Movement and Market Context
On the day the stock hit its new low, Saraswati Saree Depot Ltd recorded an intraday low of Rs.63.2, representing a 6.78% decline from the previous close. The stock’s day change was -5.60%, underperforming the Garments & Apparels sector by 6.16%. This decline followed two consecutive days of gains, signalling a reversal in short-term sentiment. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure.
In comparison, the Sensex opened lower by 167.26 points and was trading at 80,482.73, down 0.3%. Notably, other indices such as the S&P BSE FMCG and NIFTY FMCG also hit new 52-week lows on the same day, suggesting sector-wide headwinds. The Sensex itself is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, reflecting mixed technical signals at the broader market level.
Financial Performance and Valuation Metrics
Despite the recent price weakness, Saraswati Saree Depot Ltd’s financials show some positive aspects. The company reported its highest quarterly net sales of Rs.208.39 crores and a PBDIT of Rs.14.06 crores in the September 2025 quarter. Profit before tax excluding other income also reached a quarterly peak of Rs.12.36 crores. These figures indicate operational resilience in the near term.
The company maintains a strong return on equity (ROE) of 16.84%, reflecting efficient management and capital utilisation. Its debt-to-equity ratio remains at a low average of zero, underscoring a conservative capital structure. At the current price, Saraswati Saree Depot Ltd offers a dividend yield of 5.42%, which is relatively attractive for investors seeking income in the garments and apparels sector.
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Long-Term Growth and Performance Trends
While quarterly results have shown improvement, the company’s long-term growth trajectory remains subdued. Over the past five years, net sales have grown at an annual rate of just 1.00%, and operating profit has increased by 6.45% annually. This slow growth rate has contributed to the stock’s underperformance relative to broader benchmarks.
Over the last year, Saraswati Saree Depot Ltd’s stock price has declined by 44.66%, a stark contrast to the Sensex’s positive return of 3.84% during the same period. The stock has also underperformed the BSE500 index over the last three years, one year, and three months, reflecting persistent challenges in delivering shareholder value.
The stock’s 52-week high was Rs.121, indicating a significant erosion in market valuation over the past year. Despite this, the company’s price-to-book value remains at a modest 1.4, suggesting that the market valuation is not excessively stretched relative to its book value.
Shareholding and Market Perception
The majority shareholding is held by promoters, which often provides stability in ownership structure. The company’s Mojo Score stands at 53.0 with a Mojo Grade of Hold, upgraded from a previous Sell rating on 11 Nov 2025. The Market Cap Grade is 4, indicating a mid-tier market capitalisation within its sector.
Technical and Sectoral Considerations
Technically, the stock’s position below all major moving averages signals a bearish trend in the near term. The recent 52-week low price of Rs.63.2 is a key support level that investors and analysts will monitor closely. The stock’s underperformance relative to the Garments & Apparels sector and the broader market highlights sector-specific pressures that may be influencing price action.
Sector indices such as the S&P BSE FMCG and NIFTY FMCG also touched new 52-week lows on the same day, indicating that the garments and apparels sector is facing broader headwinds. The Sensex’s own technical positioning below its 50-day moving average adds to the cautious market environment.
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Summary of Key Metrics
Saraswati Saree Depot Ltd’s current stock price of Rs.63.2 represents a significant decline from its 52-week high of Rs.121. The stock’s 1-year return of -44.66% contrasts with the Sensex’s positive 3.84% return. The company’s ROE of 16.84% and zero debt-to-equity ratio reflect operational efficiency and financial prudence. Quarterly results from September 2025 show record net sales and profits, yet long-term growth remains modest with net sales increasing at just 1.00% annually over five years.
The stock’s technical position below all major moving averages and its recent 52-week low highlight ongoing price pressures amid a challenging sector environment. The dividend yield of 5.42% at the current price offers a relatively high income component for shareholders.
Outlook Considerations
While the stock has experienced a notable decline to its 52-week low, the company’s financial metrics and dividend yield provide some stabilising factors. The market’s cautious stance is reflected in the Hold Mojo Grade, upgraded from Sell in November 2025, signalling a tempered view on the stock’s near-term prospects. The broader sector and market indices’ weakness further contextualises the stock’s price movement within prevailing market dynamics.
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