Saraswati Saree Depot Stock Falls to 52-Week Low of Rs.79 Amid Market Pressure

Stock Price Movement and Market Context

On 8 December 2025, Saraswati Saree Depot’s shares recorded an intraday low of Rs.79, representing a 2.23% drop during the trading session. This price point also stands as the company’s all-time low, underscoring the extent of the recent downward trend. The stock underperformed its sector by 0.37% on the day, while the broader Sensex index declined by 0.38%, closing at 85,384.87 points after falling 239.97 points from its flat opening.

Despite the Sensex trading near its 52-week high of 86,159.02, Saraswati Saree Depot’s shares remain considerably below their own 52-week high of Rs.152.80. The stock is currently trading beneath its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained bearish momentum relative to its historical price levels.

Financial Performance Overview

Over the past year, Saraswati Saree Depot’s stock has generated a return of -43.60%, contrasting with the Sensex’s positive 4.50% return over the same period. This divergence highlights the stock’s relative underperformance within the market. The company’s net sales for the quarter ending September 2025 reached Rs.208.39 crores, marking the highest quarterly sales recorded to date. Correspondingly, the PBDIT (Profit Before Depreciation, Interest and Taxes) stood at Rs.14.06 crores, and the PBT (Profit Before Tax) excluding other income was Rs.12.36 crores, both representing quarterly highs.

Despite these quarterly peaks, the company’s long-term growth metrics present a more subdued picture. Net sales have grown at an annual rate of approximately 1.00% over the last five years, while operating profit has expanded at a rate of 6.45% annually during the same period. This slow pace of growth has contributed to the stock’s subdued performance relative to broader market indices and sector peers.

Valuation and Dividend Yield

Saraswati Saree Depot’s return on equity (ROE) stands at 16.84%, reflecting a relatively efficient use of shareholder capital. The company maintains a low debt-to-equity ratio, averaging zero, which indicates minimal reliance on borrowed funds. At the current price level, the stock offers a dividend yield of approximately 4.58%, which is considered high within the Garments & Apparels sector.

The price-to-book value ratio is around 1.7, suggesting that the stock is valued at a moderate premium relative to its book value. While the company’s profitability has shown a 4% rise over the past year, this has not translated into positive stock price performance, as the shares have lagged behind the BSE500 index over one, three years, and the last three months.

Shareholding and Sector Position

The majority of Saraswati Saree Depot’s shares are held by promoters, indicating concentrated ownership. The company operates within the Garments & Apparels industry, a sector that has experienced mixed performance amid fluctuating consumer demand and competitive pressures.

Comparative Market Analysis

While Saraswati Saree Depot’s shares have declined significantly over the past year, the broader market has shown resilience. The Sensex is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend for the benchmark index. This contrast highlights the stock’s relative weakness within the current market environment.

The company’s underperformance extends beyond the last twelve months, with returns trailing the BSE500 index over multiple time frames. This pattern suggests that the stock has faced challenges in maintaining competitive positioning and investor confidence compared to its sector and market peers.

Summary of Key Metrics

To summarise, Saraswati Saree Depot’s stock price has reached Rs.79, its lowest level in 52 weeks and all-time trading history. The stock’s decline accompanies a broader market dip, although the Sensex remains near its yearly highs. The company’s financial results show record quarterly sales and profits, yet long-term growth rates remain modest. The stock trades below all major moving averages and offers a dividend yield of 4.58%, with a strong ROE of 16.84% and negligible debt.

These factors collectively paint a picture of a company with stable profitability but facing headwinds in stock price performance and market valuation within the Garments & Apparels sector.

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