Stock Price and Market Performance
The stock closed just 4% above its 52-week low of ₹0.24, signalling a near historic trough. On 23 Jan 2026, Shangar Decor’s share price fell by 4.00%, underperforming the Sensex which declined by 0.94% on the same day. Over the past week, the stock has dropped 14.29%, compared to a 2.43% fall in the Sensex. The downward trend extends over longer periods with a 1-month decline of 17.24% versus the Sensex’s 4.66%, and a 3-month drop of 27.27% against the Sensex’s 3.57% gain.
Year-to-date, the stock has fallen 17.24%, while the Sensex has declined by 4.32%. The disparity is even more pronounced over the last year, with Shangar Decor’s stock plummeting 78.84%, in stark contrast to the Sensex’s 6.55% rise. Over three and five years, the stock has lost 56.68% and 92.70% respectively, while the Sensex gained 33.79% and 66.81% in the same periods. The 10-year performance shows no growth for Shangar Decor, remaining flat at 0.00%, whereas the Sensex surged 233.68%.
Technical Indicators
Technically, Shangar Decor is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating a persistent bearish momentum. Despite the recent daily decline, the stock marginally outperformed its sector by 1.72% on the day, though this is insufficient to offset the broader downtrend.
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Financial Performance and Valuation Metrics
Shangar Decor’s financial results have reflected a subdued trajectory. For the nine months ended September 2025, net sales stood at ₹11.59 crores, representing a decline of 21.10% year-on-year. Profit after tax (PAT) for the same period was negative ₹1.31 crores, also down by 21.10%. These figures underscore the company’s challenges in maintaining revenue growth and profitability.
The company’s return on equity (ROE) averaged a modest 2.93% over recent years, with the latest ROE at 0.3%, indicating limited profitability relative to shareholders’ funds. The valuation metrics further highlight the stock’s position; it trades at a price-to-book value of 0.2, suggesting it is priced at a discount compared to its peers’ historical averages. However, this low valuation coincides with a high-risk profile.
Debt and Profitability Concerns
One of the critical factors influencing the stock’s rating is the company’s debt servicing capacity. Shangar Decor carries a high Debt to EBITDA ratio of 3.36 times, signalling a relatively elevated leverage level that may constrain financial flexibility. The company’s operating profits have contracted at a compound annual growth rate (CAGR) of -13.11% over the past five years, reflecting persistent pressure on core earnings.
Profitability metrics remain subdued, with the company generating low returns on equity and experiencing a sharp decline in profits over the past year, which fell by 89.5%. This deterioration in earnings has contributed to the stock’s classification as a Strong Sell, an upgrade in severity from its previous Sell rating as of 28 March 2025, according to MarketsMOJO’s grading system. The Mojo Score currently stands at 17.0, reinforcing the negative outlook.
Comparative Market Performance
Shangar Decor’s stock has consistently underperformed broader market indices and sectoral peers. It has lagged behind the BSE500 index over the last three years, one year, and three months, highlighting its relative weakness. The company’s market capitalisation grade is rated 4, indicating a smaller market cap relative to other listed entities in the sector.
Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics. The stock’s persistent decline and valuation discount reflect the market’s cautious stance on the company’s prospects.
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Summary of Key Metrics
To summarise, Shangar Decor Ltd’s stock has reached an unprecedented low, driven by a combination of declining sales, shrinking profits, and elevated leverage. The company’s financial health is reflected in its low ROE and negative PAT, while its valuation remains discounted relative to peers. The stock’s performance over multiple time horizons has been markedly weaker than the broader market, with a compounded loss of over 90% in five years.
These factors collectively underpin the current Strong Sell rating and Mojo Score of 17.0, indicating significant caution in the stock’s outlook as of January 2026.
Market Context and Sector Positioning
Operating within the Diversified Commercial Services sector, Shangar Decor’s recent performance contrasts with the broader sector trends, where many peers have maintained more stable valuations and earnings growth. The stock’s persistent underperformance relative to sector averages and the Sensex highlights the challenges faced by the company in maintaining competitive positioning and financial stability.
Conclusion
Shangar Decor Ltd’s stock price decline to an all-time low is a reflection of sustained financial pressures and market sentiment. The company’s deteriorating profitability, high leverage, and weak growth metrics have contributed to its current valuation and rating status. The stock’s performance over the past decade has been notably poor compared to market benchmarks, underscoring the severity of its situation as of early 2026.
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