Share Price and Market Performance Overview
On the day of the new low, Shangar Decor’s share price remained unchanged at Rs.0.24, underperforming its sector by 0.41%. 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 bearish momentum. Over the past year, the stock has declined by 77.11%, a stark contrast to the Sensex’s 8.55% gain during the same period.
Shorter-term performance also highlights the stock’s struggles: a 3-month decline of 26.47% versus a 2.64% drop in the Sensex, and a 1-month fall of 16.67% compared to the Sensex’s 3.12% decrease. Year-to-date, Shangar Decor has lost 13.79%, while the Sensex has fallen 3.32%. Over a five-year horizon, the stock has plummeted 92.34%, whereas the Sensex has surged 75.77%, underscoring the company’s underperformance relative to the broader market.
Financial Metrics and Profitability Analysis
Shangar Decor’s financial indicators reveal ongoing difficulties. The company’s operating profits have contracted at a compound annual growth rate (CAGR) of -13.11% over the last five years, indicating a weakening earnings base. The net sales for the nine months ended September 2025 stood at Rs.11.59 crores, reflecting a decline 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 21.10% from the previous year.
The company’s return on equity (ROE) averages a modest 2.93%, with the latest figure at 0.3%, signalling limited profitability relative to shareholders’ funds. This low ROE is coupled with a high debt burden, as evidenced by a Debt to EBITDA ratio of 3.36 times, suggesting challenges in servicing debt obligations efficiently. The stock’s price-to-book value ratio of 0.2 indicates that the market values the company at a significant discount to its book value, reflecting investor caution.
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Comparative Performance and Market Context
When benchmarked against the BSE500 index, Shangar Decor has underperformed consistently over multiple time frames. The stock’s returns over the last three years have been flat at 0.00%, compared to the BSE500’s 38.87% gain. Similarly, over one year and three months, the stock’s negative returns contrast with the broader market’s positive trends. This persistent underperformance highlights the company’s challenges in maintaining competitive positioning within its sector.
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, reflecting deteriorating fundamentals and market outlook. The Market Cap Grade is rated 4, indicating a relatively low market capitalisation compared to peers.
Shareholding and Valuation Insights
Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics. The stock’s valuation metrics, including a low price-to-book ratio and expensive relative valuation given its ROE of 0.3%, suggest that the market is pricing in significant risk and uncertainty around the company’s prospects.
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Summary of Key Financial and Market Indicators
Shangar Decor Ltd’s recent financial results and market performance paint a picture of sustained pressure. The company’s net sales and profits have declined over the recent nine-month period, with a 21.10% drop in both metrics. The stock’s valuation remains discounted relative to peers, yet profitability metrics remain subdued. The high debt to EBITDA ratio of 3.36 times further underscores the financial constraints faced by the company.
Despite the stock’s significant decline, the absence of price movement on the day of the new low suggests a lack of immediate volatility. However, the broader trend remains negative, with the stock consistently underperforming sector and market benchmarks across multiple time frames.
Overall, Shangar Decor Ltd’s all-time low share price of Rs.0.24 reflects a culmination of weak financial performance, subdued profitability, and market sentiment challenges within the Diversified Commercial Services sector.
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