Stock Performance Overview
Shangar Decor’s stock has exhibited a marked decline over multiple time horizons. The one-year return stands at -83.16%, contrasting sharply with the Sensex’s 3.73% gain over the same period. Year-to-date figures reveal a negative return of -70.87%, while the three-month performance shows a decline of -21.05%, against the Sensex’s positive 4.17%. Over five years, the stock has recorded a cumulative return of -91.35%, whereas the Sensex has appreciated by 84.15%. These figures illustrate a persistent underperformance relative to the broader market benchmark.
On a daily basis, Shangar Decor’s stock price remained unchanged, while the Sensex experienced a slight dip of -0.09%. Over the past week, the stock outperformed the Sensex by 3.45% to 0.11%, but this short-term movement does not offset the longer-term downward trend. The stock’s price currently trades above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages, indicating a lack of sustained upward momentum.
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Financial Metrics and Profitability
Shangar Decor’s financial results for the nine months ending September 2025 reveal net sales of ₹11.59 crores, reflecting a contraction of 21.10% compared to the previous period. The company reported a net loss (PAT) of ₹1.31 crores for the same period, also showing a decline of 21.10%. These figures indicate a challenging revenue environment and continued pressure on profitability.
The company’s average Return on Equity (ROE) stands at 2.93%, signalling limited profitability generated per unit of shareholders’ funds. The most recent ROE figure is 0.3%, which, combined with a Price to Book Value ratio of 0.3, suggests that the stock is valued at a discount relative to its book value but remains expensive when considering the low returns generated.
Operating profit growth over the last five years has recorded a compound annual growth rate (CAGR) of -13.11%, highlighting a contraction in core earnings capacity. Additionally, the company’s ability to service debt is constrained, with a Debt to EBITDA ratio of 3.36 times, indicating elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation.
Long-Term and Sector Comparison
Over the past three years, Shangar Decor’s stock has not generated any positive returns, contrasting with the BSE500 index’s 37.86% appreciation. This underperformance extends across shorter time frames, including one year and three months, underscoring a consistent trend of lagging behind broader market indices and sector peers.
The company operates within the Diversified Commercial Services sector, which has generally shown more stable performance metrics. Shangar Decor’s market capitalisation is graded at 4, reflecting its relatively modest size within the sector. Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics.
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Valuation and Market Context
Despite the stock’s significant decline, Shangar Decor’s valuation metrics indicate a discount relative to historical averages of its peers. The Price to Book Value ratio of 0.3 is notably lower than typical sector valuations, reflecting market caution and subdued investor sentiment. However, this valuation does not appear to be supported by earnings or cash flow generation, which remain under pressure.
The stock’s recent trading behaviour, with a flat day change and mixed moving average signals, suggests a lack of clear directional momentum. While it has outperformed its sector by 3.48% on the day of reporting, this short-term movement contrasts with the broader trend of underperformance over multiple periods.
Summary of Key Challenges
Shangar Decor’s financial data points to a combination of declining sales, persistent losses, and limited returns on equity. The company’s leverage position, as indicated by the Debt to EBITDA ratio, adds to the financial constraints. These factors collectively contribute to the stock’s all-time low price level and subdued market capitalisation.
The stock’s performance relative to the Sensex and BSE500 indices highlights a prolonged period of underachievement, with returns lagging significantly behind broader market gains. This trend is evident across short, medium, and long-term time frames, underscoring the depth of the challenges faced.
Investors and market participants observing Shangar Decor’s trajectory will note the combination of valuation discounting and fundamental pressures as key elements shaping the stock’s current position.
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