Extended Price Decline and Market Comparison
Shangar Decor’s stock has experienced a marked reduction over multiple time frames. The share price has contracted by 3.33% in the latest trading session, contrasting with the Sensex’s marginal gain of 0.03% on the same day. Over the past week, the stock’s value has fallen by 9.38%, while the Sensex recorded a 0.60% rise. The one-month performance shows a 14.71% decline for Shangar Decor, compared to the Sensex’s 1.32% increase.
More notably, the stock’s three-month performance reveals a 29.27% reduction, whereas the Sensex advanced by 7.07%. The year-to-date figures indicate a 71.84% decrease in Shangar Decor’s stock price, in stark contrast to the Sensex’s 9.73% gain. Over the last year, the stock has declined by 86.82%, while the benchmark index appreciated by 8.48%. The five-year performance further highlights the stock’s challenges, with a 91.52% fall compared to the Sensex’s 94.21% rise.
Currently, Shangar Decor is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the persistent downward momentum.
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Financial Performance and Profitability Metrics
Shangar Decor’s financial results for the nine months ending September 2025 indicate a contraction in net sales to ₹11.59 crores, representing a decline of 21.10% compared to the previous period. The company reported a net loss (PAT) of ₹1.31 crores for the same period, reflecting a similar rate of decline at 21.10%.
The company’s return on equity (ROE) averaged 2.93% over recent years, signalling limited profitability relative to shareholders’ funds. The latest ROE stands at 0.3%, which, combined with a price-to-book value of 0.3, suggests a valuation that is relatively expensive when considering the company’s earnings generation capacity.
Operating profits have shown a compound annual growth rate (CAGR) of negative 13.11% over the past five years, indicating a contraction in core earnings. Additionally, the company’s debt servicing capability is constrained, with a Debt to EBITDA ratio of 3.36 times, pointing to elevated leverage levels.
Long-Term and Sectoral Context
Over the last three years, Shangar Decor’s stock has not recorded any gains, contrasting with the BSE500 index’s 37.18% appreciation during the same period. The stock’s performance has consistently lagged behind sectoral and broader market indices across multiple time horizons, including one year and three months.
Majority ownership remains with non-institutional shareholders, which may influence liquidity and trading dynamics in the stock.
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Valuation and Market Capitalisation
Shangar Decor’s market capitalisation is graded at a lower level within its sector, reflecting the market’s assessment of its current scale and financial standing. The stock is trading at a discount relative to its peers’ average historical valuations, which may be indicative of the market’s cautious stance given the company’s recent financial trajectory.
Despite the subdued performance, the stock’s recent trading activity shows it outperformed its sector by 2.95% on the day of the latest session, although this was insufficient to offset the broader downtrend.
Summary of Key Challenges
The data highlights a combination of factors contributing to Shangar Decor’s all-time low stock price. These include sustained declines in sales and profitability, limited returns on equity, elevated leverage, and a valuation that does not fully reflect earnings potential. The stock’s performance relative to major indices and sector benchmarks further emphasises the extent of its challenges over both short and long-term periods.
Market Sentiment and Shareholder Composition
With majority shareholding held by non-institutional investors, the stock’s trading patterns may be influenced by retail investor behaviour. This ownership structure can affect liquidity and price volatility, particularly in periods of market uncertainty.
Conclusion
Shangar Decor’s stock reaching an all-time low is a significant event that reflects a prolonged period of subdued financial performance and market valuation pressures. The company’s financial metrics and market data illustrate the severity of its current position within the diversified commercial services sector.
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