Stock Performance and Market Context
On 9 Jan 2026, Shoppers Stop Ltd’s share price fell to Rs.369, representing the lowest level in the past year. This decline comes amid a four-day consecutive fall, during which the stock has lost 5.03% in value. Today’s performance saw the stock underperform its sector by 1.31%, continuing a trend of relative weakness within the diversified retail space.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning contrasts with the broader market, where the Sensex recovered from an initial negative opening to close marginally higher at 84,238.06, just 2.28% shy of its 52-week high of 86,159.02.
While mid-cap stocks led gains today with the BSE Mid Cap index rising 0.19%, Shoppers Stop’s performance remains subdued, reflecting company-specific factors rather than broader market trends.
Financial and Operational Overview
Over the past year, Shoppers Stop Ltd has delivered a total return of -39.62%, markedly underperforming the Sensex’s 8.53% gain over the same period. This underperformance extends beyond the last year, with the stock consistently lagging the BSE500 index across the previous three annual periods.
The company’s financial health is characterised by a high debt burden, with a debt-to-equity ratio reaching 11.51 times on average and peaking at 30.43 times in the latest half-year results. This elevated leverage level contributes to a weak long-term fundamental strength assessment, as reflected in the company’s Mojo Grade of Strong Sell, upgraded from Sell on 31 Oct 2025.
Profitability metrics have also deteriorated, with the latest quarterly PAT reported at a loss of Rs.20.11 crores, representing a steep decline of 549.6% compared to the previous four-quarter average. Additionally, the debtor turnover ratio has fallen to a low of 5.44 times, indicating slower collections and potential liquidity pressures.
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Valuation and Comparative Metrics
Despite the challenges, Shoppers Stop Ltd’s valuation metrics present some points of interest. The company’s return on capital employed (ROCE) stands at 6.6%, which, while modest, is accompanied by an enterprise value to capital employed ratio of 2.1. This suggests the stock is trading at a discount relative to its peers’ historical valuations.
However, the company’s profits have declined by 18.4% over the past year, reinforcing the pressures on earnings quality and growth prospects. The high institutional holding of 28.51% indicates that a significant portion of the stock is held by investors with the resources to analyse the company’s fundamentals in depth.
Sector and Industry Positioning
Operating within the diversified retail sector, Shoppers Stop Ltd faces a competitive environment where market dynamics and consumer behaviour shifts play a critical role. The sector itself has seen mixed performances, with some mid-cap stocks leading gains while others, including Shoppers Stop, have struggled to maintain momentum.
The stock’s 52-week high was Rs.688, highlighting the extent of the recent decline to Rs.369. This nearly 46% drop from the peak underscores the significant market pressures the company has faced over the last year.
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Summary of Key Financial Indicators
To summarise, Shoppers Stop Ltd’s key financial indicators as of the latest reporting period include:
- Debt-Equity Ratio (Half Year): 30.43 times (highest recorded)
- Quarterly PAT: Rs. -20.11 crores, a decline of 549.6% versus previous four-quarter average
- Debtors Turnover Ratio (Half Year): 5.44 times, indicating slower receivables collection
- ROCE: 6.6%
- Enterprise Value to Capital Employed: 2.1
- Mojo Score: 17.0 with a Strong Sell grade, upgraded from Sell on 31 Oct 2025
- Market Cap Grade: 3
These figures reflect a company grappling with financial strain and market headwinds, contributing to the stock’s recent price weakness and 52-week low.
Market Sentiment and Broader Implications
The stock’s recent trajectory, including the new 52-week low, is set against a backdrop of a recovering Sensex and a mid-cap segment showing relative strength. This divergence highlights company-specific factors influencing Shoppers Stop Ltd’s share price rather than general market conditions.
Institutional investors’ significant holdings suggest a measured approach to the stock, with these stakeholders likely monitoring the company’s financial developments closely given the elevated leverage and earnings volatility.
Conclusion
Shoppers Stop Ltd’s fall to Rs.369 marks a notable point in its share price history, reflecting ongoing financial pressures and market challenges. The stock’s performance over the past year and its current valuation metrics provide a comprehensive picture of the company’s standing within the diversified retail sector as of early 2026.
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