Stock Price and Market Movement
The stock of Saraswati Saree Depot is currently trading just 1.84% above its 52-week low of ₹80, signalling a significant decline over the past year. On the most recent trading day, the share price recorded a marginal fall of 0.19%, contrasting with the Sensex’s positive movement of 0.32%. Over the last week, the stock has moved down by 3.46%, while the Sensex showed a modest gain of 0.29%. The one-month performance further emphasises the downward trend with a 7.44% reduction in the stock price, whereas the Sensex advanced by 1.30% during the same period.
Extending the timeframe, Saraswati Saree Depot’s three-month performance shows a decline of 13.57%, in stark contrast to the Sensex’s 6.31% rise. The one-year performance reveals a more pronounced drop of 36.91%, while the Sensex recorded a 7.04% increase. Year-to-date figures also reflect a similar pattern, with the stock down 37.62% against the Sensex’s 9.91% gain.
Technical Indicators and Trading Range
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend. The trading range has been narrow, with a daily fluctuation of just ₹0.55, suggesting limited volatility in recent sessions. Despite the subdued price action, the stock offers a relatively high dividend yield of 4.62% at the current price level, which stands out in the Garments & Apparels sector.
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Financial Performance Overview
Despite the stock’s downward trajectory, Saraswati Saree Depot’s recent quarterly results show some noteworthy figures. Net sales for the quarter reached ₹208.39 crores, marking the highest level recorded by the company. The Profit Before Depreciation, Interest and Taxes (PBDIT) stood at ₹14.06 crores, also the highest quarterly figure to date. Profit Before Tax excluding other income was ₹12.36 crores, reflecting a peak in this metric as well.
The company’s Return on Equity (ROE) is reported at 16.84%, indicating a relatively efficient use of shareholder funds. Additionally, the average Debt to Equity ratio remains at zero, suggesting a conservative capital structure with minimal reliance on debt financing.
Long-Term Growth and Sector Comparison
Over the past five years, Saraswati Saree Depot’s net sales have grown at an annual rate of approximately 1.00%, while operating profit has expanded at a rate of 6.45%. These figures point to modest growth within the company’s core operations. However, when compared to broader market indices such as the BSE500, the stock’s performance has been below par over multiple time horizons, including the last three years, one year, and three months.
In contrast, the Sensex has delivered returns of 37.87% over three years, 7.04% over one year, and 6.31% over three months, highlighting the relative underperformance of Saraswati Saree Depot within the Indian equity market.
Valuation Metrics
The company’s Price to Book Value ratio stands at 1.7, which may be considered attractive relative to its sector peers. Despite the subdued stock price, the firm maintains a high dividend yield of 4.6%, which could be of interest to income-focused investors.
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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 within the Garments & Apparels sector.
While the stock has shown some resilience in terms of management efficiency and profitability metrics, the overall market valuation and price performance have been subdued for an extended period.
Summary of Recent Trends
In summary, Saraswati Saree Depot’s stock has reached an all-time low, with a year-to-date decline of 37.62% and a one-year drop of 36.91%. The stock’s performance contrasts sharply with the broader market indices, which have shown positive returns over the same periods. The company’s financial results indicate some strength in quarterly sales and profits, alongside a conservative debt profile and a high dividend yield. However, the long-term growth rates and relative market performance suggest ongoing challenges in achieving sustained expansion.
Conclusion
The current valuation and price levels of Saraswati Saree Depot reflect a complex interplay of factors including sector dynamics, company-specific financial results, and broader market trends. The stock’s position below all major moving averages and its proximity to historic lows underscore the cautious environment surrounding this Garments & Apparels company.
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