Stock Price Movement and Market Context
On the trading day, Saraswati Saree Depot Ltd’s share price touched an intraday low of Rs.70.1, representing a 3.11% decline from the previous close. The stock underperformed its Garments & Apparels sector peers by 2.95%, signalling sector-wide pressures. This new low also marks the stock’s all-time lowest price, down from its 52-week high of Rs.128, reflecting a 45.2% decrease over the past year.
The broader market environment was subdued, with the Sensex falling 438.86 points (-0.62%) to close at 83,055.63 after a flat opening. The index remains 3.74% below its 52-week high of 86,159.02 and has recorded a 3.16% decline over the past three weeks. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed technical signals.
Technical Indicators and Moving Averages
Saraswati Saree Depot Ltd’s share price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad weakness across technical indicators suggests sustained selling pressure and a lack of short-term momentum. The stock’s downward trajectory contrasts with the Sensex’s relative resilience, highlighting company-specific factors influencing investor sentiment.
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Financial Performance Overview
Despite the stock’s price decline, Saraswati Saree Depot Ltd has demonstrated resilience in its financial results. The company reported its highest quarterly net sales of Rs.208.39 crores and a peak PBDIT of Rs.14.06 crores in the September 2025 quarter. Profit before tax excluding other income also reached a quarterly high of Rs.12.36 crores during the same period.
The company’s return on equity (ROE) stands at a robust 16.84%, reflecting efficient management and profitability. Additionally, the firm maintains a low average debt-to-equity ratio of zero, indicating a conservative capital structure with minimal leverage. At the current price, Saraswati Saree Depot Ltd offers a high dividend yield of 5.11%, providing income appeal to shareholders.
Long-Term Growth and Valuation Metrics
Over the past five years, Saraswati Saree Depot Ltd’s net sales have grown at a modest annual rate of 1.00%, while operating profit has increased at 6.45% annually. This slow growth trajectory has contributed to the stock’s underperformance relative to broader market indices. Over the last year, the stock has generated a negative return of 41.42%, significantly lagging the Sensex’s positive 8.34% gain during the same period.
The company’s price-to-book value ratio is 1.5, which, combined with its strong ROE, suggests a valuation that some may consider attractive relative to peers. However, the subdued growth rates and recent price weakness have tempered enthusiasm.
Shareholding and Market Capitalisation
Promoters remain the majority shareholders of Saraswati Saree Depot Ltd, maintaining significant control over the company’s strategic direction. The stock holds a Market Cap Grade of 4, indicating a mid-tier market capitalisation within its sector. The recent upgrade in the company’s Mojo Grade from Sell to Hold on 11 Nov 2025 reflects a reassessment of its financial and operational metrics, with a current Mojo Score of 53.0.
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Sector and Market Comparison
The Garments & Apparels sector has faced headwinds in recent months, with several stocks experiencing volatility amid changing consumer demand and competitive pressures. Saraswati Saree Depot Ltd’s underperformance relative to the sector and broader indices highlights the challenges faced by companies in this space.
While the Sensex has shown some technical resilience, the stock’s consistent trading below all major moving averages indicates a cautious market stance. The stock’s 52-week low price of Rs.70.1 contrasts sharply with its previous highs, underscoring the extent of the recent correction.
Dividend Yield and Income Considerations
At a dividend yield of 5.11%, Saraswati Saree Depot Ltd offers one of the higher income returns within its sector. This yield is notable given the stock’s depressed price level and may provide some support to the share price from income-focused investors. The company’s ability to maintain dividend payments amid fluctuating market conditions remains a key feature of its financial profile.
Summary of Key Metrics
To summarise, Saraswati Saree Depot Ltd’s stock has reached a significant 52-week low of Rs.70.1, reflecting a 41.42% decline over the past year. The company’s financials show strong profitability with a 16.84% ROE, zero debt, and record quarterly sales and profits in September 2025. However, slow long-term growth and recent price weakness have weighed on investor sentiment. The stock trades below all major moving averages and underperforms its sector and the Sensex index.
The company’s current Mojo Grade of Hold, upgraded from Sell in November 2025, reflects a balanced view of its prospects. The high dividend yield of 5.11% adds an income dimension to the stock’s profile amid challenging market conditions.
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