Stock Performance and Market Context
On 6 January 2026, Shangar Decor Ltd’s share price settled at Rs.0.27, establishing both a 52-week and all-time low. Despite this, the stock marginally outperformed its sector by 3.86% on the day, though it remained unchanged in absolute terms. The stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
Comparatively, the Sensex declined by 0.28% on the same day, while Shangar Decor’s one-week performance remained flat against the Sensex’s 0.62% gain. Over longer periods, the stock’s underperformance is more pronounced: a 6.67% decline over one month versus a 0.60% drop in the Sensex; a 17.65% fall over three months compared to a 4.16% rise in the benchmark; and a steep 69.50% loss over the past year against the Sensex’s 9.28% gain.
Year-to-date, Shangar Decor has declined by 3.45%, slightly worse than the Sensex’s near-flat performance of -0.03%. Over five years, the stock has plummeted 91.04%, starkly contrasting with the Sensex’s 76.85% appreciation. The three-year and ten-year returns for Shangar Decor stand at 0.00%, indicating stagnation, while the Sensex has delivered 42.23% and 235.34% gains respectively over these periods.
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Financial Metrics and Profitability Trends
Shangar Decor’s financial indicators reveal ongoing pressures. The company reported net sales of Rs.11.59 crores for the nine months ended September 2025, reflecting a contraction of 21.10% compared to the prior period. Correspondingly, the profit after tax (PAT) for the same period was a loss of Rs.1.31 crores, also down 21.10% year-on-year.
Over the last five years, the company’s operating profits have declined at a compound annual growth rate (CAGR) of -13.11%, underscoring a weakening earnings base. The average return on equity (ROE) stands at a modest 2.93%, indicating limited profitability generated from shareholders’ funds. For the most recent period, ROE has further diminished to 0.3%, highlighting the challenges in generating returns.
Debt servicing capacity remains constrained, with a Debt to EBITDA ratio of 3.36 times, signalling elevated leverage relative to earnings before interest, tax, depreciation and amortisation. This level of indebtedness may restrict financial flexibility and increase risk exposure.
Valuation metrics suggest the stock is trading at a discount relative to its peers’ historical averages, with a price-to-book value ratio of 0.2. Despite this, the valuation appears expensive when considered against the company’s subdued profitability and deteriorating fundamentals.
Long-Term and Recent Performance Comparison
Shangar Decor’s performance has been consistently below par in both the near and long term. The stock’s 69.50% loss over the past year is accompanied by an 89.5% decline in profits, reflecting a significant erosion of shareholder value. Over three years, the stock has failed to generate any positive returns, underperforming the BSE500 index and the broader market.
The company’s Mojo Score, a comprehensive measure of financial health and market sentiment, stands at 17.0, categorised as a Strong Sell. This represents a downgrade from a previous Sell rating on 28 March 2025, indicating a worsening outlook based on MarketsMOJO’s assessment framework. The Market Capitalisation Grade is rated 4, further reflecting the company’s diminished market stature.
Shareholding patterns reveal that the majority of shares are held by non-institutional investors, which may influence liquidity and trading dynamics.
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Summary of Key Indicators
To summarise, Shangar Decor Ltd’s stock has reached an unprecedented low of Rs.0.27, reflecting a prolonged period of financial contraction and market underperformance. The company’s declining sales, negative profit growth, low return on equity, and high leverage contribute to its current valuation and rating status. The stock’s inability to keep pace with sector and market indices over multiple time horizons further emphasises the severity of its situation.
While the stock trades at a discount to peers, the underlying fundamentals and financial metrics suggest a cautious stance is warranted when analysing its current position within the Diversified Commercial Services sector.
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