SKP Securities Declines 11.86%: 3 Key Factors Behind the Steep Weekly Drop

Monday, 19 January 2026: Weak Start Amid Broader Market Decline

SKP Securities began the week on a subdued note, closing at Rs.105.45, down 1.49% from the previous Friday’s close of Rs.107.05. The decline came alongside a 0.49% drop in the Sensex to 36,650.97, reflecting a cautious market mood. Trading volume was relatively low at 315 shares, indicating limited buying interest. The stock’s early weakness foreshadowed the sharper declines that would follow in the week.

Tuesday, 20 January 2026: New 52-Week Low Signals Intensifying Downtrend

On 20 January, SKP Securities’ share price plunged to a new 52-week low of Rs.98.95, closing at this level after a steep 3.75% drop. This marked a significant milestone in the stock’s ongoing downtrend, extending a three-day losing streak. The decline was sharper than the Sensex’s 1.82% fall to 35,984.65, indicating underperformance relative to the broader market. Volume surged to 1,780 shares, suggesting increased selling pressure.

The stock’s fall below key moving averages, including the 5-day and 20-day averages, confirmed sustained bearish momentum. This technical weakness was compounded by disappointing quarterly earnings released recently, which showed a 27.10% decline in Profit Before Tax (PBT) to Rs.3.90 crore and a 30.67% drop in Profit After Tax (PAT) to Rs.6.94 crore for the nine months ended September 2025.

Wednesday, 21 January 2026: Sharp Drop and Downgrade to Strong Sell

The downward momentum accelerated on 21 January as SKP Securities hit another 52-week low, closing at Rs.91.85, down 9.51% on the day. Intraday, the stock touched Rs.90, marking an 11.33% intraday drop. This steep decline outpaced the Sensex’s modest 0.47% fall to 35,815.26, highlighting the stock’s pronounced weakness.

Trading volume surged to 5,574 shares, reflecting heightened volatility and investor uncertainty. The stock’s technical indicators deteriorated further, trading below all major moving averages and signalling sustained bearish momentum.

On the same day, MarketsMOJO downgraded SKP Securities from a Sell to a Strong Sell rating, citing deteriorating technical indicators and disappointing earnings performance. The downgrade was driven by a comprehensive reassessment of quality, valuation, financial trends, and technical parameters. Despite the downgrade, the company retains a strong long-term Return on Equity (ROE) averaging 17.20% and healthy operating profit growth at an annualised rate of 55.91%, but these positives have been overshadowed by near-term earnings contraction and technical weakness.

Thursday, 22 January 2026: Modest Recovery Amid Volatility

Following the sharp declines, SKP Securities staged a modest recovery on 22 January, closing at Rs.94.75, up 3.16% on the day. This rebound came alongside a 0.76% gain in the Sensex to 36,088.66, suggesting some relief in broader market sentiment. Volume moderated to 3,710 shares, indicating cautious buying interest.

Despite the bounce, the stock remained well below key moving averages and the week’s opening price, reflecting ongoing uncertainty. The recovery was insufficient to reverse the week’s overall negative trend but may indicate short-term technical support near current levels.

Friday, 23 January 2026: Week Ends on a Slightly Negative Note

SKP Securities closed the week at Rs.94.35, down 0.42% on the day, with volume declining to 572 shares. The Sensex fell 1.33% to 35,609.90, continuing its three-week losing streak. The stock’s weekly decline of 11.86% starkly contrasts with the Sensex’s 3.31% fall, underscoring the stock’s significant underperformance.

Despite the week’s volatility and negative price action, SKP Securities continues to trade at an attractive Price to Book ratio of 1.3 and maintains a promoter majority shareholding, which may provide some ownership stability. However, the persistent earnings pressure and bearish technical signals suggest continued caution.

Key Takeaways

Significant Underperformance: SKP Securities declined 11.86% over the week, markedly underperforming the Sensex’s 3.31% fall. The stock’s steep losses reflect intensified selling pressure and negative sentiment.

Technical Weakness and Downgrade: The breach of multiple 52-week lows and trading below all major moving averages signalled sustained bearish momentum. The downgrade to a Strong Sell rating by MarketsMOJO on 20 January 2026 underscored these technical and fundamental concerns.

Earnings Pressure: Recent quarterly results revealed a 27.10% decline in PBT and a 30.67% contraction in PAT, contributing to the negative outlook despite the company’s strong long-term ROE and operating profit growth.

Valuation Discount: The stock trades at a Price to Book ratio of 1.3, attractive relative to peers, but this valuation gap reflects market caution amid earnings weakness and technical deterioration.

Ownership Stability: Promoter majority shareholding remains intact, providing some stability amid the challenging market environment.

Conclusion

SKP Securities Ltd’s performance in the week ending 23 January 2026 was marked by sharp declines, technical deterioration, and a significant downgrade to Strong Sell. The stock’s 11.86% weekly fall, hitting new 52-week lows, highlights the challenges faced amid disappointing earnings and bearish market sentiment. While the company retains solid long-term fundamentals such as a robust ROE and healthy operating profit growth, these have not translated into positive near-term price momentum. The valuation discount and promoter stability offer some support, but the prevailing technical weakness and earnings contraction suggest continued caution for investors in the near term.

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