Stock Performance Overview
On 4 Feb 2026, Shangar Decor Ltd’s share price settled at Rs.0.24, establishing both a 52-week and all-time low. The stock underperformed its sector by 0.61% on the day, with no change in price recorded, while the Sensex advanced by 0.13%. The share price remains below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day, signalling sustained bearish momentum.
Examining recent performance, the stock has declined by 3.85% over the past week, contrasting with a 1.83% gain in the Sensex. Over one month, the stock fell 13.79%, significantly underperforming the Sensex’s 2.23% decline. The three-month trend shows a 21.88% drop against a modest 0.47% gain in the benchmark index. The year-to-date performance also reflects a 13.79% loss compared to the Sensex’s 1.61% decline.
Longer-term figures reveal a stark contrast: Shangar Decor Ltd has delivered a negative 74.65% return over the past year, while the Sensex gained 6.70%. Over five years, the stock has plummeted 92.31%, whereas the Sensex surged 65.66%. The three-year and ten-year returns for Shangar Decor Ltd stand at 0.00%, indicating stagnation, while the Sensex posted gains of 37.81% and 244.51% respectively.
Financial Metrics and Profitability
The company’s financial health remains under pressure, with operating profits declining at a compound annual growth rate (CAGR) of -13.11% over the last five years. The latest nine-month results ending September 2025 show net sales of Rs.11.59 crores, down 21.10% year-on-year. Correspondingly, the profit after tax (PAT) for the same period was a loss of Rs.1.31 crores, also reflecting a 21.10% decline.
Return on Equity (ROE) averages a modest 2.93%, indicating limited profitability relative to shareholders’ funds. The most recent ROE figure stands at 0.3%, underscoring the company’s constrained ability to generate returns. The Price to Book Value ratio is 0.2, suggesting the stock is trading at a discount relative to its book value, yet this valuation is considered expensive given the company’s earnings profile.
Debt metrics further highlight financial strain. The Debt to EBITDA ratio is 3.36 times, signalling a relatively high debt burden compared to earnings before interest, taxes, depreciation, and amortisation. This ratio points to challenges in servicing debt obligations efficiently.
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Comparative Market Position and Ratings
Shangar Decor Ltd’s Mojo Score stands at 17.0, with a Mojo Grade of Strong Sell as of 28 Mar 2025, downgraded from a Sell rating. The Market Capitalisation Grade is 4, reflecting its micro-cap status within the Diversified Commercial Services sector. The stock’s underperformance is evident not only against the Sensex but also relative to the BSE500 index over multiple time frames including three months, one year, and three years.
Shareholding patterns reveal that the majority of shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The stock’s valuation remains discounted compared to peers’ historical averages, yet this has not translated into positive returns or improved financial metrics.
Profitability has deteriorated sharply, with profits falling by 89.5% over the past year, further compounding the negative return of 74.65% generated by the stock during the same period. This combination of weak earnings and steep price decline underscores the severity of the company’s current position.
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Sector and Industry Context
Operating within the Diversified Commercial Services sector, Shangar Decor Ltd’s performance contrasts sharply with broader sector trends. While the sector has seen varied growth, Shangar Decor’s persistent declines in sales and profitability highlight its relative underperformance. The company’s inability to keep pace with sector averages over multiple periods is reflected in its sustained negative returns and subdued financial ratios.
The stock’s trading below all key moving averages further emphasises the prevailing downward momentum. This technical positioning, combined with fundamental weaknesses, paints a comprehensive picture of the company’s current market standing.
Summary of Key Financial Indicators
To encapsulate, Shangar Decor Ltd’s key financial indicators reveal:
- Operating profit CAGR over five years: -13.11%
- Debt to EBITDA ratio: 3.36 times
- Average Return on Equity: 2.93%
- Latest nine-month net sales: Rs.11.59 crores (-21.10%)
- Latest nine-month PAT: Rs.-1.31 crores (-21.10%)
- Price to Book Value ratio: 0.2
- One-year stock return: -74.65%
- Profit decline over one year: -89.5%
These figures collectively illustrate the challenges faced by the company in maintaining growth and profitability, as well as the market’s response reflected in the share price.
Conclusion
Shangar Decor Ltd’s fall to an all-time low of Rs.0.24 marks a significant point in its market journey, underscored by sustained declines in financial performance and stock price. The company’s metrics indicate ongoing difficulties in generating returns and managing debt, with the stock’s valuation reflecting these realities. The persistent underperformance relative to sector and benchmark indices further highlights the extent of the challenges faced.
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