Recent Price Movement and Market Context
On 5 December 2025, Shoppers Stop's share price touched Rs.399.3, the lowest level recorded in the past year. This price point comes after six consecutive trading sessions of decline, during which the stock has recorded a cumulative return of -6.48%. The daily performance today showed a drop of 1.11%, underperforming the diversified retail sector by 1.28%. 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 a persistent bearish trend.
In contrast, the broader market index, Sensex, opened lower at 85,125.48 points, down 139.84 points or 0.16%, but has since stabilised around 85,226.48 points, a marginal decline of 0.05%. The Sensex remains close to its 52-week high of 86,159.02, trading just 1.09% below that peak. Notably, the Sensex is positioned above its 50-day moving average, which itself is above the 200-day moving average, indicating a generally bullish market environment that Shoppers Stop has not mirrored.
Performance Comparison and Historical Returns
Over the last twelve months, Shoppers Stop has recorded a total return of -37.10%, a stark contrast to the Sensex's positive return of 4.23% over the same period. The stock's 52-week high was Rs.688, highlighting the extent of the decline to the current low. This underperformance extends beyond the past year, with the company lagging behind the BSE500 index in each of the last three annual periods, underscoring a longer-term trend of relative weakness within the diversified retail sector.
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Financial Health and Debt Profile
Shoppers Stop's financial metrics reveal a challenging capital structure. The company carries a high debt burden, with a debt-to-equity ratio averaging 36.93 times, and a half-year figure reported at 30.43 times. This level of leverage is considerably elevated compared to typical industry standards and contributes to a weaker long-term fundamental strength assessment. The high debt levels may constrain financial flexibility and increase vulnerability to interest rate fluctuations.
Profitability metrics have also shown pressure. The company reported a net loss after tax (PAT) of Rs. -20.11 crore in the most recent quarter, representing a decline of 549.6% compared to the previous four-quarter average. Additionally, the debtors turnover ratio for the half-year stood at 5.44 times, indicating slower collection cycles relative to prior periods.
Valuation and Operational Metrics
Despite the challenges, Shoppers Stop's return on capital employed (ROCE) is recorded at 6.6%, which, when combined with an enterprise value to capital employed ratio of 2.2, suggests a valuation that is comparatively attractive relative to its historical peer averages. The stock is trading at a discount to its sector peers' average valuations, reflecting the market's cautious stance on the company's near-term prospects.
Profit figures have also shown a decline over the past year, with profits falling by 18.4%. This contraction in profitability aligns with the broader trend of subdued financial performance and market valuation.
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Institutional Holdings and Market Position
Institutional investors hold a significant stake in Shoppers Stop, accounting for 28.51% of the shareholding. These investors typically possess greater resources and analytical capabilities to assess company fundamentals, which may influence trading patterns and liquidity in the stock.
While the stock has experienced a notable decline, the broader diversified retail sector and market indices have maintained relatively stable or positive trajectories. This divergence highlights sector-specific and company-specific factors influencing Shoppers Stop's performance.
Summary of Key Price and Performance Indicators
To summarise, Shoppers Stop's stock price has declined to Rs.399.3, marking a 52-week low and reflecting a sustained downtrend over recent sessions. The stock's performance contrasts with the Sensex, which remains near its yearly highs and trades above key moving averages. The company's elevated debt levels, recent negative quarterly results, and subdued profitability metrics contribute to the current market valuation and price behaviour.
Investors and market participants continue to monitor these developments within the context of the diversified retail sector's dynamics and broader market conditions.
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