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

Stock Performance and Market Context

On 5 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 4.01% on the day, while its one-day price change was flat at 0.00%, contrasting with the Sensex’s modest decline of 0.28%. Over the past month, the stock has declined by 10.71%, significantly underperforming the Sensex’s 2.17% fall. The three-month performance shows a sharper drop of 21.88%, while the Sensex remained nearly flat with a 0.15% gain.

Longer-term trends reveal a more pronounced deterioration. Over the last year, Shangar Decor’s stock has plummeted by 75.10%, whereas the Sensex gained 6.79%. Year-to-date, the stock has fallen 13.79%, compared to the Sensex’s 1.92% decline. The five-year performance is particularly stark, with the stock losing 92.40% of its value, while the Sensex surged 64.76%. The stock’s moving averages further underline the downtrend, trading below its 5-day, 20-day, 50-day, 100-day, and 200-day averages.

Financial Metrics Highlight Weakness

Shangar Decor’s financial fundamentals have deteriorated alongside its share price. The company’s operating profits have contracted at a compound annual growth rate (CAGR) of -13.11% over the past five years, signalling sustained pressure on core earnings. The net sales for the nine months ended September 2025 stood at Rs.11.59 crores, reflecting a decline of 21.10% compared to the previous period. Correspondingly, the profit after tax (PAT) for the same period was a loss of Rs.1.31 crores, also down by 21.10%.

The company’s ability to service debt remains constrained, with a Debt to EBITDA ratio of 3.36 times, indicating elevated leverage relative to earnings before interest, tax, depreciation, and amortisation. Return on Equity (ROE) averages a modest 2.93%, underscoring limited profitability generated from shareholders’ funds. The most recent ROE figure is even lower at 0.3%, while the stock’s price-to-book value ratio stands at 0.2, suggesting an expensive valuation relative to its book value despite the depressed share price.

Comparative Performance and Market Position

Shangar Decor’s underperformance extends beyond absolute price declines. Relative to the BSE500 index, the stock has lagged over the last three years, one year, and three months. While the BSE500 has delivered positive returns over these periods, Shangar Decor’s stock has remained stagnant or declined sharply. This persistent underperformance highlights the company’s challenges in maintaining competitive positioning within the Diversified Commercial Services sector.

The company’s Mojo Score currently stands at 17.0, with a Mojo Grade of Strong Sell as of 28 March 2025, an upgrade from the previous Sell rating. This grading reflects the assessment of multiple financial and market parameters, including profitability, debt levels, and valuation metrics. The Market Cap Grade is rated 4, indicating a relatively low market capitalisation compared to peers.

Shareholding and Valuation Insights

Majority ownership of Shangar Decor remains with non-institutional shareholders, which may influence liquidity and trading dynamics. The stock trades at a discount compared to its peers’ average historical valuations, yet its valuation metrics remain elevated relative to its current earnings and book value. Over the past year, profits have declined by 89.5%, further emphasising the financial strain faced by the company.

Summary of Key Financial and Market Indicators

To summarise, Shangar Decor Ltd’s stock has reached an unprecedented low of Rs.0.24, reflecting a sustained decline over multiple time horizons. The company’s financial indicators reveal contraction in sales and profits, elevated leverage, and limited returns on equity. The stock’s valuation metrics, including price-to-book ratio and market cap grade, suggest a complex picture where the market price is discounted but profitability remains constrained.

Despite the recent Mojo Grade downgrade to Strong Sell, the company’s shareholding structure and sector positioning continue to define its market narrative. The stock’s performance relative to major indices and sector benchmarks underscores the challenges faced by Shangar Decor Ltd in reversing its downward trajectory.

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