Shangar Decor Ltd Hits All-Time Low Amid Prolonged Downtrend

Stock Price and Market Performance Overview

On 27 Jan 2026, Shangar Decor Ltd’s share price touched ₹0.24, the lowest level ever recorded for the company. Despite a modest rebound today with a 4.17% gain, the stock remains substantially below its moving averages, trading beneath the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This indicates a sustained bearish trend without signs of immediate recovery.

Comparatively, the Sensex declined by 0.47% on the same day, underscoring Shangar Decor’s relative outperformance in the very short term. However, over longer periods, the stock’s returns have been markedly disappointing. The one-month return stands at -16.67%, the three-month return at -24.24%, and the year-to-date return at -13.79%. These figures contrast sharply with the Sensex’s positive 7.68% return over the past year and a 36.78% gain over three years.

Over five years, Shangar Decor’s stock has plummeted by 92.71%, while the Sensex has surged by 71.17%. The stock’s inability to generate positive returns over the decade further highlights its underperformance relative to the broader market, which has appreciated by 231.34% in the same period.

Financial Health and Profitability Metrics

Shangar Decor’s financial indicators reveal ongoing strain. The company’s operating profits have declined at a compound annual growth rate (CAGR) of -13.11% over the last five years, signalling weakening core earnings capacity. The net sales for the nine months ended September 2025 stood at ₹11.59 crores, reflecting a contraction of 21.10% compared to the previous period.

Profit after tax (PAT) for the same period was negative ₹1.31 crores, also down by 21.10%, indicating continued losses. The average return on equity (ROE) remains low at 2.93%, with the most recent figure at 0.3%, underscoring limited profitability generated from shareholders’ funds.

The company’s debt servicing ability is constrained, with a Debt to EBITDA ratio of 3.36 times, suggesting elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation. This level of indebtedness may restrict financial flexibility and increase risk exposure.

Valuation metrics further reflect the stock’s subdued status. Shangar Decor trades at a price-to-book value of 0.2, which, while indicating a discount relative to peers’ historical valuations, also points to market scepticism about the company’s asset utilisation and growth prospects.

Comparative Performance and Market Context

Shangar Decor’s performance has been notably below par when benchmarked against the BSE500 index and its sector peers. The stock has underperformed the BSE500 over the last three years, one year, and three months, reflecting persistent challenges in maintaining competitive positioning within the diversified commercial services sector.

While the stock outperformed its sector by 3.83% on the day of the new low, this short-term gain follows two consecutive days of decline, indicating a tentative pause rather than a sustained reversal. The company’s market capitalisation grade is rated at 4, reflecting its micro-cap status and associated liquidity and volatility considerations.

Ownership structure remains dominated by non-institutional shareholders, which may influence trading patterns and market perception.

Rating and Quality Assessment

MarketsMOJO assigns Shangar Decor a Mojo Score of 17.0, categorising it as a Strong Sell. This represents a downgrade from its previous Sell rating as of 28 Mar 2025, signalling deteriorating fundamentals and market sentiment. The downgrade reflects the company’s weak long-term growth, low profitability, and high leverage.

The combination of a low Mojo Score and a Strong Sell grade underscores the severity of the company’s current position within the market and the challenges it faces in reversing its downward trajectory.

Summary of Key Financial and Market Indicators

To summarise, Shangar Decor Ltd’s stock has reached an unprecedented low of ₹0.24, reflecting a prolonged period of underperformance. The company’s financial metrics reveal declining sales and profits, low returns on equity, and elevated debt levels. Its valuation remains discounted relative to peers, yet this is accompanied by a strong sell rating and a low Mojo Score, indicating significant concerns about the company’s current standing.

Despite a slight uptick in price today, the stock remains entrenched below all major moving averages, and its returns over multiple time horizons lag well behind market benchmarks. The ownership concentration among non-institutional shareholders adds another dimension to the stock’s trading dynamics.

Overall, the data portrays a company facing considerable headwinds, with its stock price reflecting the cumulative impact of these challenges.

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