Shalibhadra Finance Ltd Falls to 52-Week Low Amid Market Downturn

Stock Price Movement and Market Context

On the day in question, Shalibhadra Finance Ltd’s share price fell by 4.21%, closing at Rs.91, which also represented the intraday low with an 8.82% drop from the previous close. This decline extended a losing streak, with the stock falling for four consecutive sessions and delivering a cumulative negative return of 7.85% over this period. The stock’s performance lagged behind its sector by 2.27% on the same day.

The broader market context was also subdued. The Sensex opened 385.82 points lower and was trading at 81,776.53, down 0.49%. The index has been on a three-week losing streak, shedding 4.65% in that timeframe. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating some underlying resilience despite recent weakness.

Shalibhadra Finance Ltd’s share price is currently below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a sustained downtrend. The stock’s 52-week high was Rs.178.10, highlighting the extent of the recent decline.

Financial Performance and Valuation Metrics

Over the past year, Shalibhadra Finance Ltd has delivered a total return of -45.68%, significantly underperforming the Sensex, which posted a positive return of 7.83% during the same period. The BSE500 index also outperformed the stock with a 6.20% gain over the last 12 months.

Despite the share price weakness, the company has reported positive quarterly results for 16 consecutive quarters. The latest quarterly PBDIT reached a peak of Rs.7.12 crore, with an operating profit to net sales ratio of 75.03%, indicating strong operational efficiency. Profit before tax excluding other income stood at Rs.6.10 crore, reflecting a growth rate of 33.19%.

The company’s return on equity (ROE) averaged 10.89% over the long term, with the most recent figure at 11.3%. This level of ROE is modest but consistent, contributing to a valuation that remains attractive relative to peers. The stock trades at a price-to-book value of 1.9, which is considered fair when compared to the average historical valuations within the NBFC sector.

Profit growth over the past year has been robust at 38.6%, resulting in a price/earnings to growth (PEG) ratio of 0.7, which suggests the stock is valued reasonably in relation to its earnings growth.

Ratings and Market Perception

Shalibhadra Finance Ltd holds a Mojo Score of 32.0 and a Mojo Grade of Sell as of 14 Jan 2026, an improvement from its previous Strong Sell rating. The market capitalisation grade stands at 4, reflecting its mid-cap status within the NBFC sector. These ratings indicate cautious market sentiment, acknowledging the company’s financial metrics but also its recent price performance.

Promoter confidence remains notable, with promoters increasing their stake by 0.69% in the previous quarter, now holding 56.24% of the company’s equity. This increase suggests a degree of faith in the company’s business prospects despite the recent share price decline.

Sector and Industry Comparison

Within the NBFC sector, Shalibhadra Finance Ltd’s share price performance has been weaker relative to peers and the broader market indices. The sector itself has faced headwinds amid tightening liquidity conditions and cautious investor sentiment. The company’s valuation metrics, however, remain competitive, with a price-to-book ratio in line with sector averages and a PEG ratio below 1, indicating potential value relative to earnings growth.

While the Sensex and BSE500 indices have shown resilience with positive returns over the past year, Shalibhadra Finance Ltd’s stock has not mirrored this trend, reflecting company-specific factors and broader sector pressures.

Summary of Key Metrics

To summarise, Shalibhadra Finance Ltd’s stock has reached a 52-week low of Rs.91, reflecting a significant correction from its high of Rs.178.10. The stock’s recent four-day decline and underperformance relative to its sector and the Sensex highlight ongoing pressures. However, the company’s consistent quarterly profitability, improving promoter stake, and reasonable valuation metrics provide a comprehensive picture of its current standing.

The broader market environment, with the Sensex also experiencing a three-week decline, adds context to the stock’s performance. While the company’s long-term return on equity remains moderate, its profit growth and operating margins have shown strength in recent quarters.

Overall, the stock’s current price level reflects a combination of market-wide weakness and company-specific factors, with valuation and financial results offering a nuanced perspective on its position within the NBFC sector.

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