Shangar Decor Ltd Stock Hits All-Time Low Amid Prolonged Downtrend

Price Movement and Market Context

On 2 Feb 2026, Shangar Decor Ltd’s stock closed at Rs.0.24, establishing both a 52-week and all-time low. Despite this, the stock marginally outperformed its sector by 4.14% on the day, though it remained unchanged in absolute terms. The share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.

Comparatively, the Sensex recorded a positive 0.50% gain on the same day, highlighting the stock’s divergence from broader market trends. Over the past month, Shangar Decor’s share price has fallen by 17.24%, significantly underperforming the Sensex’s 5.41% decline. The three-month performance is even more pronounced, with a 27.27% drop against the Sensex’s modest 3.35% fall.

Long-Term Performance and Valuation

Over the last year, the stock has delivered a negative return of 76.28%, while the Sensex appreciated by 4.67%. This stark contrast emphasises the company’s challenges in maintaining shareholder value. The stock’s five-year performance is particularly concerning, with a decline of 92.75% compared to the Sensex’s robust 62.91% gain. Over a decade, Shangar Decor has remained flat, whereas the Sensex surged by 230.60%.

The company’s valuation metrics further illustrate its current standing. Shangar Decor trades at a price-to-book value of 0.2, indicating a substantial discount relative to its peers’ historical averages. However, this low valuation is accompanied by a Return on Equity (ROE) averaging just 2.93%, reflecting limited profitability per unit of shareholder funds. The recent ROE stands at a mere 0.3, underscoring the company’s constrained earnings capacity.

Financial Results and Profitability Trends

Shangar Decor’s recent financial results reveal a continuation of subdued performance. For the nine months ended September 2025, net sales contracted by 21.10% to Rs.11.59 crores. Correspondingly, the company reported a net loss (PAT) of Rs.1.31 crores, also reflecting a 21.10% decline. These figures indicate a shrinking revenue base alongside persistent losses.

The company’s operating profits have exhibited a negative compound annual growth rate (CAGR) of 13.11% over the past five years, signalling deteriorating earnings before interest, tax, depreciation, and amortisation. This trend has contributed to a weakened fundamental profile and diminished investor confidence.

Debt and Capital Structure

Shangar Decor’s ability to service its debt obligations remains constrained, with a Debt to EBITDA ratio of 3.36 times. This elevated leverage ratio suggests that earnings are insufficient to comfortably cover interest and principal repayments, potentially limiting financial flexibility. The majority of the company’s shares are held by non-institutional investors, which may influence liquidity and market dynamics.

Comparative Sector and Market Performance

The stock’s underperformance extends across multiple time horizons when benchmarked against the BSE500 index. Over the last three years, Shangar Decor has failed to generate any positive returns, contrasting with the BSE500’s 35.36% gain. Similarly, the one-year and three-month periods show the stock lagging behind the broader market, reinforcing its relative weakness within the diversified commercial services sector.

Mojo Score and Analyst Ratings

Reflecting the company’s financial and market challenges, Shangar Decor holds a Mojo Score of 17.0, categorised as a Strong Sell. This rating was upgraded from Sell on 28 March 2025, indicating a further deterioration in the company’s outlook. The Market Capitalisation Grade stands at 4, consistent with its micro-cap status and limited market presence.

The Strong Sell grade is driven by weak long-term fundamentals, including negative operating profit growth, low return on equity, and high leverage. These factors collectively contribute to the stock’s subdued valuation and persistent underperformance relative to peers and market benchmarks.

Summary of Key Metrics

To encapsulate, Shangar Decor Ltd’s current financial and market indicators are as follows:

• Share price at all-time low: Rs.0.24
• One-year return: -76.28%
• Five-year return: -92.75%
• Operating profit CAGR (5 years): -13.11%
• Debt to EBITDA ratio: 3.36 times
• Return on Equity (average): 2.93%
• Price to Book Value: 0.2
• Net sales (9M Sep 2025): Rs.11.59 crores, down 21.10%
• Profit after tax (9M Sep 2025): Rs.-1.31 crores, down 21.10%

These figures collectively illustrate the extent of the company’s challenges and the subdued market sentiment surrounding its shares.

Conclusion

Shangar Decor Ltd’s stock reaching an all-time low of Rs.0.24 marks a significant point in its prolonged period of underperformance. The company’s financial indicators, including declining sales, persistent losses, and high leverage, have contributed to a diminished valuation and a Strong Sell rating. The stock’s consistent underperformance relative to market indices and sector peers highlights the severity of its current situation within the diversified commercial services industry.

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