Recent Price Movements and Market Context
The stock recorded a day-on-day decline of 1.47%, underperforming the Sensex, which fell by 0.72% on the same day. Over the past week, Saraswati Saree Depot’s shares have declined by 3.95%, compared with a 0.77% fall in the Sensex. The one-month performance shows a 7.27% reduction in the stock price, while the Sensex posted a positive return of 1.53% during this period.
Extending the timeframe, the stock’s three-month performance reveals a 12.83% fall, contrasting with a 4.17% gain in the Sensex. Over the last year, Saraswati Saree Depot’s shares have declined by 44.28%, whereas the Sensex has recorded a 3.65% increase. Year-to-date, the stock has fallen by 39.83%, while the benchmark index has advanced by 8.12%.
Notably, the stock has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum. The stock has also recorded losses for two consecutive days, with a cumulative return of -3.51% over this short span.
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Long-Term Performance and Sector Comparison
Over a three-year horizon, Saraswati Saree Depot’s stock has shown no net growth, standing at 0.00%, while the Sensex has appreciated by 35.87%. The five-year and ten-year performances similarly reflect stagnation, with the stock remaining flat at 0.00%, in contrast to the Sensex’s gains of 83.25% and 237.46% respectively. This indicates a prolonged period of underperformance relative to the broader market.
Within the garments and apparels sector, the stock has underperformed its peers in both short and long-term periods. The sector’s general trends have not translated into positive returns for Saraswati Saree Depot, which has lagged behind key benchmarks such as the BSE500 index over the last three months, one year, and three years.
Financial Metrics and Profitability
Despite the subdued stock price, the company’s financial results for the quarter ended September 2025 show some noteworthy figures. Net sales reached a quarterly high of ₹208.39 crores, while profit before depreciation, interest, and tax (PBDIT) stood at ₹14.06 crores, also the highest recorded for the period. Profit before tax excluding other income (PBT less OI) was ₹12.36 crores, marking a quarterly peak.
The return on equity (ROE) remains relatively strong at 16.84%, indicating efficient utilisation of shareholder funds. The company’s debt-to-equity ratio averages at zero, reflecting a debt-free capital structure, which is a positive aspect in terms of financial stability.
Over the past year, profits have shown a modest rise of 4%, despite the stock’s significant price decline. The company offers a dividend yield of 4.67% at the current price level, which is comparatively high and may be of interest to income-focused investors.
Growth Trends and Valuation
Examining growth over the last five years, net sales have expanded at an annual rate of approximately 1.00%, while operating profit has grown at around 6.45% per annum. These figures suggest limited expansion in top-line revenue and moderate improvement in operating profitability over the medium term.
The stock’s price-to-book value ratio stands at 1.7, which may be considered attractive relative to its sector peers, given the company’s financial metrics and dividend yield. However, the lack of significant capital appreciation over the past decade highlights challenges in generating long-term shareholder value.
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Shareholding and Market Capitalisation
The majority shareholding in Saraswati Saree Depot is held by promoters, indicating concentrated ownership. The company’s market capitalisation grade is rated at 4, reflecting its position as a micro-cap stock within the garments and apparels sector.
In terms of sectoral performance, the stock has underperformed the broader garments and apparels industry, which has generally experienced more favourable market conditions in recent years. This divergence underscores the specific challenges faced by Saraswati Saree Depot in capturing sector growth.
Summary of Current Situation
Saraswati Saree Depot’s stock has reached a critical low point, trading near its 52-week bottom and showing consistent declines across multiple timeframes. While the company’s financials reveal some positive aspects such as a strong ROE, debt-free balance sheet, and a high dividend yield, these have not translated into stock price appreciation.
The stock’s performance relative to the Sensex and sector benchmarks highlights a period of subdued investor confidence and limited capital gains. The company’s modest growth rates in sales and operating profit over the past five years further illustrate the challenges in expanding its market presence and profitability.
Investors and market participants will continue to monitor Saraswati Saree Depot’s financial disclosures and market movements closely as the stock remains at historically low levels.
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