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

Stock Performance Overview

On 9 Feb 2026, Shangar Decor Ltd’s share price dropped by 4.00%, closing at Rs.0.24, which is both its 52-week and all-time low. This decline occurred despite the stock outperforming its sector by 2.94% on the day. The stock’s movement relative to its moving averages shows it trading above the 5-day average but remaining below the 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained bearish trend over the medium to long term.

Comparatively, the Sensex gained 0.43% on the same day, highlighting Shangar Decor’s underperformance against broader market indices. Over various time frames, the stock’s returns have been notably weak:

• 1 Day: -4.00% vs Sensex +0.43%
• 1 Week: -7.69% vs Sensex +2.78%
• 1 Month: -17.24% vs Sensex +0.43%
• 3 Months: -22.58% vs Sensex +0.87%
• 1 Year: -75.16% vs Sensex +7.81%
• Year-to-date: -17.24% vs Sensex -1.50%
• 3 Years: 0.00% vs Sensex +38.04%
• 5 Years: -92.71% vs Sensex +63.53%
• 10 Years: 0.00% vs Sensex +249.44%

The stark contrast between Shangar Decor’s returns and the Sensex’s gains over multiple periods underscores the stock’s prolonged underperformance.

Financial Metrics and Profitability

Shangar Decor’s financial indicators reveal ongoing difficulties. The company’s net sales for the nine months ended September 2025 stood at Rs.11.59 crores, reflecting a contraction 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 declining by 21.10% year-on-year.

Over the last five years, the company’s operating profits have shrunk at a compound annual growth rate (CAGR) of -13.11%, signalling a weakening earnings base. The average return on equity (ROE) is a modest 2.93%, indicating limited profitability generated from shareholders’ funds. For the most recent period, ROE has further diminished to 0.3%, underscoring the company’s constrained ability to generate returns.

Debt metrics also point to financial strain, with a Debt to EBITDA ratio of 3.36 times, suggesting a relatively high leverage level that may impact the company’s capacity to meet its debt obligations comfortably.

Valuation metrics show the stock trading at a price-to-book value of 0.2, which is low and indicates the market’s discounted view of the company’s net asset value. Despite this, the valuation appears expensive relative to the company’s current profitability levels.

Market Capitalisation and Shareholding

Shangar Decor holds a Market Cap Grade of 4, reflecting its relatively small market capitalisation within its sector. The majority of its shares are held by non-institutional investors, which may influence liquidity and trading dynamics.

The company’s Mojo Score 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 a comprehensive assessment of the company’s financial health, market performance, and risk factors.

Comparative Sector and Index Performance

Within the Diversified Commercial Services sector, Shangar Decor’s performance has been notably below par. While the sector has shown resilience, the stock’s returns have lagged significantly, underperforming the BSE500 index over the last three years, one year, and three months.

This persistent underperformance relative to both sector peers and broader market indices highlights the challenges faced by the company in maintaining competitive positioning and investor confidence.

Summary of Key Challenges

The stock’s all-time low price of Rs.0.24 is a culmination of several factors including sustained declines in sales and profitability, high leverage, and weak returns on equity. The company’s inability to generate positive earnings growth over the past five years, combined with its underwhelming market performance relative to benchmarks, has contributed to the current valuation and market sentiment.

Despite trading at a discount to peers’ historical valuations, the stock’s financial metrics and market capitalisation grade reflect a cautious outlook. The predominance of non-institutional shareholders may also affect trading volumes and price stability.

Overall, Shangar Decor Ltd’s current market position and financial profile illustrate a company facing significant headwinds, as evidenced by its recent price movements and fundamental indicators.

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