Stock Price and Market Performance
As of the latest trading session, Shangar Decor is trading just 3.33% above its 52-week low of ₹0.29, signalling a near-record trough in its market valuation. The stock’s price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the persistent downward momentum.
In terms of short-term price movement, the stock showed no change in value on the most recent day, contrasting with the broader Sensex index which declined by 0.40%. Over the past week, Shangar Decor’s shares have declined by 3.23%, while the Sensex fell by 0.32%. The one-month performance also reflects a 3.23% reduction, whereas the Sensex gained 2.58% during the same period.
More notably, the stock’s three-month performance shows a decline of 18.92%, in stark contrast to the Sensex’s 5.67% gain. Over the last year, Shangar Decor’s shares have fallen by 86.93%, while the Sensex recorded a 4.48% increase. Year-to-date figures reveal a 70.87% reduction for the stock, compared to a 9.25% rise in the Sensex.
Longer-term data further emphasises the stock’s underperformance. Over five years, Shangar Decor’s shares have declined by 92.59%, whereas the Sensex has appreciated by 87.17%. The three-year and ten-year figures show no positive returns for Shangar Decor, while the Sensex has delivered gains of 36.43% and 237.28% respectively.
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Financial Results and Profitability
Shangar Decor’s financial results for the nine months ending September 2025 indicate a contraction in net sales, which stood at ₹11.59 crores, reflecting a decline of 21.10% compared to the corresponding period in the previous year. The company reported a net loss (PAT) of ₹1.31 crores for the same period, also showing a reduction of 21.10% in profitability.
The company’s average return on equity (ROE) is recorded at 2.93%, indicating limited profitability generated from shareholders’ funds. More recent figures show an ROE of 0.3%, which, when combined with a price-to-book value of 0.3, suggests that the stock is valued expensively relative to its book value despite the subdued returns.
Operating profit growth over the last five years has shown a compound annual growth rate (CAGR) of negative 13.11%, pointing to a contraction in core earnings capacity. The company’s ability to service debt is constrained, with a Debt to EBITDA ratio of 3.36 times, indicating a relatively high leverage position compared to earnings before interest, taxes, depreciation, and amortisation.
Comparative Market Context
Shangar Decor’s stock performance has lagged behind its sector peers and broader market indices consistently. Over the past year, the stock’s return of negative 86.93% contrasts sharply with the Sensex’s positive 4.48% return. Similarly, the stock has underperformed the BSE500 index over the last three months, one year, and three years, highlighting its relative weakness within the diversified commercial services sector.
The stock’s valuation is discounted relative to the average historical valuations of its peers, yet this discount has not translated into positive returns or improved financial metrics. The majority of the company’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics.
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Summary of Key Challenges
The data reveals a company facing significant headwinds in both market valuation and financial performance. The persistent decline in share price, coupled with negative growth in operating profits and net sales, points to a challenging environment for Shangar Decor. The elevated Debt to EBITDA ratio further indicates financial strain in managing obligations relative to earnings.
Profitability metrics such as ROE remain low, suggesting limited returns generated on equity capital. The stock’s valuation metrics, including price-to-book value, do not reflect a clear value proposition given the ongoing declines in earnings and share price.
Despite these factors, the stock’s performance relative to the broader market and sector peers remains subdued, with no recent indications of reversal in trend based on available data.
Market and Sector Overview
Operating within the diversified commercial services sector, Shangar Decor’s performance contrasts with the broader sector and market indices, which have shown positive returns over various time frames. The sector’s average valuations and returns have outpaced those of Shangar Decor, highlighting the company’s relative underperformance within its industry group.
Investor participation is predominantly from non-institutional shareholders, which may affect trading volumes and price stability. The stock’s current market capitalisation grade is low, reflecting its micro-cap status and limited market presence.
Conclusion
Shangar Decor’s stock reaching an all-time low is a significant event underscoring the company’s ongoing financial and market challenges. The combination of declining sales, negative profit growth, high leverage, and subdued returns on equity paints a picture of a company struggling to regain footing in a competitive sector. The stock’s valuation and performance metrics indicate a prolonged period of subdued investor confidence and market valuation.
While the broader market and sector indices have shown resilience and growth, Shangar Decor’s share price and financial indicators reflect a contrasting trajectory marked by sustained declines and limited recovery signals.
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