Recent Price Movement and Market Context
On 5 December 2025, Shoppers Stop's share price touched Rs.399.3, underperforming its sector by 1.28% on the day. This decline comes amid a broader market environment where the Sensex opened lower at 85,125.48 points, down 139.84 points or 0.16%, and was trading marginally below its opening level at 85,226.48 points during the session. Notably, the Sensex remains close to its 52-week high of 86,159.02, just 1.09% away, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish market trend.
In contrast, Shoppers Stop's stock price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downward momentum. The stock's 52-week high stands at Rs.688, highlighting the extent of the price contraction over the past year.
Performance Over the Past Year
Over the last 12 months, Shoppers Stop has recorded a return of -37.10%, a stark contrast to the Sensex's positive return of 4.29% over the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods. Such a trend underscores the challenges faced by the company in maintaining competitive performance within the diversified retail sector.
Our latest monthly pick, this Small Cap from Oil Exploration/Refineries, is showing strong performance since announcement! See why our Investment Committee chose it after screening 50+ candidates.
- - Investment Committee approved
- - 50+ candidates screened
- - Strong post-announcement performance
Financial Health and Key Ratios
Shoppers Stop's financial metrics reveal areas of concern that have contributed to its subdued market performance. The company carries a notably high debt burden, with a debt-to-equity ratio averaging 36.93 times and a half-year figure at 30.43 times. This level of leverage is considerably elevated compared to typical industry standards and indicates a significant reliance on borrowed funds.
Profitability metrics have also reflected pressures, with the company reporting negative net profits for three consecutive quarters. The latest quarterly profit after tax (PAT) stood at a loss of Rs.20.11 crore, representing a decline of 549.6% relative to the average of the previous four quarters. Such results have weighed on investor sentiment and contributed to the stock's downward trajectory.
Operational efficiency indicators further illustrate challenges. The debtors turnover ratio for the half-year period is recorded at 5.44 times, which is relatively low and may suggest slower collection cycles or increased credit risk. Despite these factors, the company’s return on capital employed (ROCE) is at 6.6%, and its enterprise value to capital employed ratio is 2.2, indicating valuation levels that are attractive relative to some peers.
Shareholding and Market Position
Institutional investors hold a significant stake in Shoppers Stop, accounting for 28.51% of the shareholding. These investors typically possess extensive resources and analytical capabilities to assess company fundamentals, which may influence trading patterns and stock valuation.
Sector and Benchmark Comparison
Within the diversified retail sector, Shoppers Stop's stock has demonstrated consistent underperformance relative to its peers and broader market indices. The sector itself has experienced varied performance, but Shoppers Stop's returns over the past year and preceding periods have lagged behind the BSE500 and Sensex benchmarks, highlighting the stock's relative weakness.
Holding Shoppers Stop from Diversified Retail? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Market Indicators
To summarise, Shoppers Stop's stock has been on a declining path, culminating in a fresh 52-week low of Rs.399.3. The stock's performance contrasts with the broader market's relative strength, as the Sensex remains near its yearly peak and trades above key moving averages. The company's elevated debt levels, consecutive quarterly losses, and subdued turnover ratios have contributed to the current valuation and price levels.
While the stock is trading at a discount compared to historical valuations of its peers, the recent financial results and market dynamics have influenced its price movement. Investors and market participants continue to monitor these developments within the diversified retail sector context.
Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →
