Srestha Finvest Ltd Falls 3.33%: 3 Key Factors Driving the Weekly Decline

Jan 24 2026 03:03 PM IST
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Srestha Finvest Ltd’s shares declined by 3.33% over the week ending 23 January 2026, closing at Rs.0.29 from Rs.0.30 the previous Friday. This performance marginally underperformed the Sensex, which fell 3.31% during the same period. The week was marked by the stock hitting new all-time and 52-week lows amid continued financial deterioration and weak market sentiment, culminating in a late-week rebound that partially recovered losses.

Key Events This Week

Jan 19: Stock opens at Rs.0.29, down 3.33% from previous close

Jan 20: Shares hit all-time low of Rs.0.28 amid ongoing decline

Jan 21: New 52-week and all-time low of Rs.0.26 recorded

Jan 23: Stock rebounds to Rs.0.29, gaining 7.41% on the day

Week Open
Rs.0.30
Week Close
Rs.0.29
-3.33%
Week Low
Rs.0.26
vs Sensex
-0.02%

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

Srestha Finvest Ltd opened the week at Rs.0.29, down 3.33% from the previous Friday’s close of Rs.0.30. The stock’s decline coincided with a 0.49% drop in the Sensex to 36,650.97 points. Trading volume was moderate at 4.6 million shares, reflecting cautious investor sentiment. The stock’s performance was in line with the broader market weakness but already indicated pressure on the micro-cap NBFC amid ongoing financial concerns.

Tuesday, 20 January 2026: All-Time Low Amid Prolonged Downtrend

On 20 January, Srestha Finvest’s shares settled at Rs.0.28, marking a new all-time low and a 52-week low. The stock was flat on the day with no price change but had declined cumulatively by 9.68% over the prior three trading sessions. This underperformance was stark compared to the Sensex’s sharper 1.82% drop to 35,984.65 points. The stock’s persistent weakness reflected deteriorating fundamentals, including a reported 87.97% year-on-year decline in net sales to Rs.5.86 crores for the nine months ending September 2025 and a net loss of Rs.35.26 crores.

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Wednesday, 21 January 2026: New 52-Week Low Amid Steep Decline

The stock plunged further on 21 January, closing at Rs.0.26, a fresh 52-week and all-time low, down 6.90% on the day. This sharp fall significantly underperformed the Sensex’s 0.47% decline to 35,815.26 points. The day’s volume surged to over 10.2 million shares, indicating heightened selling pressure. The stock traded below all key moving averages, signalling sustained bearish momentum. The company’s financials continued to weigh heavily, with operating profit declining at an annualised rate of -324.75% and EBITDA remaining negative. The Mojo Score remained at 3.0 with a Strong Sell rating, reflecting the deteriorating outlook.

Thursday, 22 January 2026: Stabilisation Despite Market Rally

On 22 January, Srestha Finvest’s share price held steady at Rs.0.27, showing no change from the previous close. This stability came despite a 0.76% rally in the Sensex to 36,088.66 points. Trading volume moderated to 4.37 million shares. The stock’s inability to participate in the broader market recovery highlighted ongoing investor caution and the company’s fundamental challenges. The shareholding pattern, dominated by non-institutional investors, may have contributed to the stock’s volatility and limited upside participation.

Friday, 23 January 2026: Late-Week Rebound on Increased Volume

The week concluded with a notable rebound as Srestha Finvest’s shares rose 7.41% to Rs.0.29 on 23 January, recovering some of the prior losses. This gain contrasted with the Sensex’s 1.33% decline to 35,609.90 points. Volume increased to nearly 6 million shares, suggesting renewed buying interest or short-covering activity. Despite this bounce, the stock remains deeply undervalued relative to its historical levels and continues to face significant financial headwinds, including negative operating cash flows of Rs.-53.50 crores and a net loss of Rs.35.26 crores for the nine months ended September 2025.

Date Stock Price Day Change Sensex Day Change
2026-01-19 Rs.0.29 -3.33% 36,650.97 -0.49%
2026-01-20 Rs.0.28 +0.00% 35,984.65 -1.82%
2026-01-21 Rs.0.26 -6.90% 35,815.26 -0.47%
2026-01-22 Rs.0.27 +0.00% 36,088.66 +0.76%
2026-01-23 Rs.0.29 +7.41% 35,609.90 -1.33%

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Key Takeaways from the Week

Persistent Downtrend and New Lows: The stock’s slide to Rs.0.26 on 21 January marked a fresh 52-week and all-time low, underscoring ongoing financial and operational challenges. This decline was sharper than the broader market’s fall, reflecting company-specific weaknesses.

Financial Deterioration: The company’s nine-month net sales plunged 87.97% to Rs.5.86 crores, with a corresponding net loss of Rs.35.26 crores. Operating cash flow remained deeply negative at Rs.-53.50 crores, highlighting liquidity pressures and weak earnings capacity.

Late-Week Recovery: The 7.41% gain on 23 January suggests some short-term buying interest or technical rebound, though the stock remains below all key moving averages and retains a Strong Sell Mojo Grade of 3.0.

Market Sentiment and Shareholding: The predominance of non-institutional investors may contribute to volatility and limited support for the stock. The NBFC sector headwinds and the company’s deteriorating fundamentals continue to weigh on investor confidence.

Conclusion

Srestha Finvest Ltd’s performance over the week ending 23 January 2026 reflects a micro-cap stock grappling with severe financial distress and market scepticism. Despite a late-week bounce, the stock’s overall trajectory remains negative, with new lows and weak fundamentals dominating the narrative. The company’s significant declines in sales, profitability, and cash flow, combined with its Strong Sell rating and low Mojo Score, highlight the considerable challenges ahead. Investors should note the stock’s persistent underperformance relative to the Sensex and sector peers, as well as its position below all major moving averages, signalling continued bearish momentum in the near term.

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