Price Movement and Market Comparison
On the latest trading day, Shangar Decor's share price settled at Rs.0.3, establishing both a 52-week and all-time low. This price point places the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum. The stock's performance today remained flat with no change, while the broader Sensex index recorded a gain of 0.39%, highlighting Shangar Decor's relative underperformance.
Over the past week, the stock declined by 3.13%, contrasting with the Sensex's marginal fall of 0.31%. The one-month period saw a 6.06% reduction in the stock price, whereas the Sensex advanced by 0.84%. More pronounced is the three-month performance, where Shangar Decor's price contracted by 26.19%, while the Sensex appreciated by 5.12%.
Long-Term Performance Trends
Examining longer time horizons, Shangar Decor's stock has experienced substantial value erosion. The one-year return stands at -85.63%, in stark contrast to the Sensex's 6.15% gain over the same period. Year-to-date figures reveal a decline of 69.90% for the stock, while the Sensex has increased by 8.68%. Over five years, the stock's value has diminished by 90.77%, whereas the Sensex has surged by 91.87%. The three-year and ten-year returns for Shangar Decor are recorded as flat, compared to Sensex gains of 36.32% and 227.14% respectively, underscoring the stock's prolonged underperformance relative to the broader market.
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Financial Metrics and Profitability
Shangar Decor's financial results for the nine months ending September 2025 indicate net sales of Rs.11.59 crores, reflecting a contraction of 21.10% compared to the previous period. The company reported a net loss (PAT) of Rs.1.31 crores for the same duration, also showing a decline of 21.10%. These figures point to challenges in revenue generation and profitability within the current fiscal year.
The average return on equity (ROE) stands at 2.93%, suggesting limited profitability relative to shareholders' funds. The most recent ROE figure is 0.3, which, when combined with a price-to-book value of 0.3, indicates a valuation that may be considered expensive relative to the company's earnings capacity. The company's ability to service debt is constrained, with a Debt to EBITDA ratio of 3.36 times, signalling elevated leverage levels.
Sector and Shareholding Context
Operating within the diversified commercial services sector, Shangar Decor's market capitalisation is graded at 4, reflecting its size and market presence. The majority of the company's shares are held by non-institutional investors, which may influence liquidity and trading dynamics.
In comparison to its sector peers, Shangar Decor's stock is trading at a discount relative to average historical valuations, yet its financial performance and returns have lagged behind benchmarks such as the BSE500 index over one-year, three-month, and three-year periods.
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Summary of Performance Indicators
The compounded annual growth rate (CAGR) of operating profits over the last five years is recorded at -13.11%, indicating a contraction in core earnings. The stock's returns over the past year have been negative at -85.63%, while profits have declined by 89.5% during the same timeframe. These data points reflect a subdued financial trajectory and highlight the challenges faced by the company in maintaining profitability and shareholder value.
Shangar Decor's underperformance relative to the Sensex and BSE500 indices across multiple time frames emphasises the stock's divergence from broader market trends. The stock's flat returns over three years, combined with significant losses over shorter periods, illustrate the extent of its market difficulties.
Trading and Valuation Overview
The stock's current trading price at Rs.0.3 is significantly below its historical averages and moving averages, underscoring a persistent bearish trend. Despite trading at a discount to peer valuations, the company's financial metrics suggest limited capacity for value generation in the near term. The high leverage ratio and low return on equity further compound the valuation concerns.
Overall, Shangar Decor's stock performance and financial indicators portray a company facing considerable headwinds within the diversified commercial services sector, with its market valuation reflecting these ongoing challenges.
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