Shangar Decor Ltd Stock Falls to 52-Week Low of Rs.0.25

Stock Price Movement and Market Context

On 20 Jan 2026, Shangar Decor Ltd’s share price declined by 3.85% to reach Rs.0.25, setting a new 52-week low and all-time low for the stock. This price is substantially lower than its 52-week high of Rs.1.15, reflecting a steep depreciation of 78.26% from the peak. Despite this fall, the stock marginally outperformed its sector by 0.86% on the day, though it remains well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating persistent downward momentum.

The broader market context shows the Sensex index experienced a negative session, falling by 283.05 points (-0.39%) to close at 82,924.33 after a flat opening. The Sensex remains 3.9% below its 52-week high of 86,159.02 and has been on a three-week consecutive decline, losing 3.31% over this period. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, suggesting some underlying market resilience despite recent weakness.

Financial Performance and Valuation Metrics

Shangar Decor Ltd’s financial results have reflected a subdued trend over recent periods. The company reported net sales of Rs.11.59 crores for the nine months ended September 2025, representing a contraction of 21.10% year-on-year. Correspondingly, the profit after tax (PAT) for the same period was a loss of Rs.1.31 crores, also down by 21.10%. These figures underscore a challenging revenue environment and continued pressure on profitability.

Over the past year, the stock has generated a negative return of 77.56%, while profits have declined by 89.5%, highlighting the extent of financial strain. The company’s long-term growth trajectory has also been weak, with a compound annual growth rate (CAGR) of operating profits at -13.11% over the last five years. This trend has contributed to a downgrade in the company’s Mojo Grade from Sell to Strong Sell as of 28 Mar 2025, with a current Mojo Score of 17.0, reflecting deteriorated fundamentals.

Debt and Profitability Concerns

Shangar Decor Ltd’s financial health is further challenged by its elevated leverage. The company’s Debt to EBITDA ratio stands at 3.36 times, indicating a relatively low capacity to service its debt obligations. This level of indebtedness adds to the financial risk profile and constrains flexibility for growth or restructuring.

Profitability metrics also remain subdued. The average Return on Equity (ROE) is 2.93%, signalling limited profitability generated per unit of shareholders’ funds. The most recent ROE figure is even lower at 0.3%, which, combined with a price-to-book value of 0.2, suggests the stock is trading at a discount relative to its book value but remains expensive when considering the low returns generated.

Relative Performance and Sector Comparison

When compared to broader market indices and peers, Shangar Decor Ltd has underperformed markedly. The Sensex has delivered a positive return of 7.61% over the past year, contrasting sharply with Shangar Decor’s negative 77.56% return. Additionally, the stock has lagged behind the BSE500 index over the last three years, one year, and three months, underscoring its below-par performance in both the long and near term.

Within the Diversified Commercial Services sector, Shangar Decor’s valuation and financial metrics place it at a disadvantage relative to peers, many of whom maintain stronger fundamentals and more stable earnings trajectories.

Shareholding Pattern

The majority of Shangar Decor Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The absence of significant institutional ownership could reflect cautious sentiment towards the stock given its recent performance and financial profile.

Summary of Key Metrics

To summarise, Shangar Decor Ltd’s current stock price of Rs.0.25 represents a significant decline from its 52-week high of Rs.1.15, with a year-to-date performance reflecting a 77.56% loss. The company’s financial indicators reveal a contraction in sales and profits, a high debt burden relative to earnings, and low returns on equity. These factors have contributed to a Strong Sell Mojo Grade of 17.0, downgraded from Sell in March 2025.

The stock’s trading below all major moving averages and its underperformance relative to the Sensex and sector peers highlight ongoing challenges. The shareholding pattern dominated by non-institutional investors may also affect market dynamics for the stock.

While the broader market shows some resilience, Shangar Decor Ltd remains on a downward trajectory, reflecting the cumulative impact of its financial and valuation pressures.

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