Recent Market Performance and Price Movement
On 3 December 2025, Spencers Retail’s stock closed just 0.46% above its 52-week low of ₹43.1, signalling a near-record trough in its trading history. The stock has recorded a continuous decline over the past five trading sessions, with cumulative returns falling by 7.32% during this period. The latest session saw a drop of 3.03%, notably steeper than the Sensex’s 0.27% decline on the same day.
Over the last week, the stock’s performance has lagged behind the Sensex by a wide margin, with an 8.18% reduction compared to the benchmark’s 0.82% fall. The monthly trend further emphasises this divergence, as Spencers Retail’s share price has moved down by 15.05%, while the Sensex recorded a positive return of 1.11%. The three-month figures reveal a sharper contrast, with the stock declining 26.73% against the Sensex’s 5.39% gain.
Longer-term data paints a challenging picture for Spencers Retail. The stock has delivered a negative return of 50.99% over the past year, while the Sensex has advanced by 5.02%. Year-to-date figures show a similar pattern, with the stock down 47.07% compared to the Sensex’s 8.66% rise. Over three and five years, the stock has underperformed significantly, posting losses of 37.83% and 46.11% respectively, while the Sensex has appreciated by 35.06% and 90.24% over the same periods. The ten-year performance of Spencers Retail remains flat, contrasting sharply with the Sensex’s 228.00% gain.
Technical Indicators and Moving Averages
Spencers Retail’s share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a persistent downward momentum and a lack of short- to long-term price support levels. The stock’s relative weakness compared to its sector peers is also evident, as its daily performance aligns with the sector but remains considerably weaker than the broader market.
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Financial Health and Profitability Metrics
Spencers Retail’s financial data reveals several areas of concern. The company’s net sales for the first nine months stand at ₹1,272.86 crores, reflecting a contraction of 21.09% compared to the previous period. Correspondingly, the net profit after tax (PAT) for the same period is negative ₹193.81 crores, also showing a decline of 21.09%. This negative profitability trend has persisted for three consecutive quarters.
The company’s debt profile remains elevated, with an average debt-to-equity ratio of 2.45 times, indicating a high leverage position. The half-yearly debt-to-equity ratio peaked at 2.16 times, underscoring the company’s reliance on borrowed funds. This level of indebtedness places additional pressure on the company’s financial flexibility and risk profile.
Operating profit growth over the last five years has been negative at an annualised rate of 350.95%, signalling a prolonged period of contraction in core earnings. The company’s book value is reported as negative, which points to a weak long-term fundamental strength and raises questions about the balance sheet’s resilience.
Valuation and Risk Considerations
The stock is currently trading at valuations that are considered risky relative to its historical averages. Despite the significant share price decline of nearly 51% over the past year, the company’s profits have shown a modest rise of 8.1% during the same period, highlighting a disconnect between earnings and market valuation.
Spencers Retail’s performance has been below par not only in the near term but also over extended periods. The stock has underperformed the BSE500 index over the last three months, one year, and three years, reflecting persistent challenges in maintaining competitive positioning within the diversified retail sector.
Shareholding and Market Context
The majority ownership of Spencers Retail remains with its promoters, which continues to influence the company’s strategic direction and governance. The diversified retail sector itself has experienced mixed trends, with some peers showing resilience while others face headwinds similar to those confronting Spencers Retail.
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Summary of Current Situation
Spencers Retail’s stock has reached a historic low point, reflecting a combination of subdued sales, negative profitability, high leverage, and sustained underperformance relative to market benchmarks. The company’s financial indicators point to a challenging environment, with contraction in revenues and persistent losses over recent quarters. The stock’s technical and valuation metrics further illustrate the pressures faced by the company in the current market context.
While the diversified retail sector continues to evolve, Spencers Retail’s current position highlights the difficulties in reversing the downward trend that has characterised its share price and financial results over multiple years.
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