Saraswati Saree Depot Ltd Stock Hits 52-Week Low at Rs.74.05

Stock Price Movement and Market Context

On the day the stock hit its lowest level in a year, Saraswati Saree Depot Ltd recorded a modest day change of 0.23%, outperforming its sector by 0.77%. Despite this slight uptick, the stock remains below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. The stock’s 52-week high stands at Rs.128, underscoring the extent of the decline.

In contrast, the broader market showed resilience. The Sensex, after an initial negative opening down by 158.87 points, recovered to close at 84,193.65, up 0.02%. The index remains 2.33% shy of its 52-week high of 86,159.02. Mid-cap stocks led gains with the BSE Mid Cap index rising by 0.19%, highlighting a divergence between Saraswati Saree Depot Ltd’s performance and broader market trends.

Financial Performance and Valuation Metrics

Despite the stock’s price weakness, the company’s recent quarterly results showed some positive indicators. For the quarter ending September 2025, Saraswati Saree Depot Ltd reported its highest net sales at Rs.208.39 crores, alongside a peak PBDIT of Rs.14.06 crores and a PBT less other income of Rs.12.36 crores. These figures represent incremental improvements in profitability, with profits rising by 4% over the past year.

The company maintains a strong return on equity (ROE) of 16.84%, reflecting efficient management and capital utilisation. Additionally, the firm’s debt-to-equity ratio remains at an average of zero, indicating a conservative capital structure with minimal leverage. At the current price, the stock offers a high dividend yield of 4.94%, which may appeal to income-focused investors.

Long-Term Growth and Comparative Performance

Over the last five years, Saraswati Saree Depot Ltd has exhibited modest growth, with net sales increasing at an annual rate of just 1.00% and operating profit expanding by 6.45%. This slow pace of growth has contributed to the stock’s underperformance relative to broader indices. Over the past year, the stock has generated a negative return of -39.93%, significantly lagging the Sensex’s positive 8.47% gain during the same period.

Furthermore, the stock has underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in delivering shareholder value compared to its peers. This underperformance is reflected in the MarketsMOJO Mojo Score of 53.0 and a Mojo Grade of Hold, which was upgraded from Sell on 11 Nov 2025, signalling a cautious stance on the stock’s near-term prospects.

Shareholding and Market Capitalisation

The majority shareholding in Saraswati Saree Depot Ltd is held by promoters, providing a stable ownership structure. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status within the garments and apparels sector. This classification often entails higher volatility and sensitivity to sectoral and economic shifts.

Sector and Market Dynamics

The garments and apparels sector has faced mixed conditions, with some mid-cap stocks leading market gains while others, including Saraswati Saree Depot Ltd, have struggled to maintain momentum. The stock’s current position below all key moving averages contrasts with the broader market’s recovery and the Sensex’s proximity to its 52-week high, highlighting sector-specific pressures and company-specific factors influencing the share price.

Despite the recent price weakness, the company’s valuation remains attractive, with a price-to-book value of 1.6, suggesting that the market is pricing in subdued growth expectations. The high dividend yield of 4.94% at the current price level provides a degree of income stability amid price volatility.

Summary of Key Metrics

To summarise, Saraswati Saree Depot Ltd’s stock has declined to Rs.74.05, its lowest level in 52 weeks, reflecting a year-long return of -39.93%. The company’s financials show incremental profit growth and strong management efficiency, with a ROE of 16.84% and zero debt. However, slow long-term sales growth and underperformance relative to market indices have weighed on the stock’s price. The shareholding remains concentrated with promoters, and the stock’s valuation metrics indicate a cautious market outlook.

While the stock has shown a slight gain after two consecutive days of decline, it remains to be seen how it will navigate the prevailing market and sector conditions in the near term.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →