Srestha Finvest Ltd Stock Hits 52-Week Low Amidst Weak Financial Performance

Stock Price Movement and Market Context

The stock of Srestha Finvest Ltd has declined sharply over the past year, registering a fall of 60.61%, in stark contrast to the Sensex’s positive performance of 6.05% during the same period. Today’s price of Rs.0.25 represents a new nadir for the company, down from its 52-week high of Rs.0.72. Despite the broader Finance/NBFC sector falling by 2.15% today, Srestha Finvest marginally outperformed the sector with a flat day change of 0.00%.

Technical indicators show the stock trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. Meanwhile, the Sensex itself reversed sharply after a positive opening, falling by 949.37 points to 81,439.60, down 1.01%, and trading below its 50-day moving average, though the 50DMA remains above the 200DMA.

Financial Performance and Fundamental Assessment

Srestha Finvest’s financial metrics reveal considerable strain. The company reported net sales of Rs.5.86 crores for the nine months ended September 2025, reflecting a contraction of 87.97% year-on-year. Correspondingly, the profit after tax (PAT) for the same period was a loss of Rs.35.26 crores, also down by 87.97%. Operating cash flow for the year was deeply negative at Rs.-53.50 crores, underscoring liquidity pressures.

The company’s operating profit has deteriorated at an annualised rate of -324.75%, contributing to a weak long-term fundamental strength. Negative EBITDA levels further highlight the financial challenges faced by the firm. Over the past year, profits have plunged by 387.6%, indicating a significant erosion of earnings capacity.

Mojo Score and Rating Changes

The company’s Mojo Score currently stands at 3.0, with a Mojo Grade of Strong Sell as of 6 January 2025, an upgrade from the previous Sell rating. This grading reflects the deteriorated financial health and weak growth prospects. The Market Cap Grade is 4, indicating a relatively small market capitalisation, which can contribute to higher volatility and risk.

Majority shareholding remains with non-institutional investors, which may affect liquidity and trading dynamics. The stock’s valuation is considered risky compared to its historical averages, given the negative earnings trajectory and subdued sales growth.

Sectoral and Broader Market Influences

The NBFC sector has experienced downward pressure recently, with the sector index declining by 2.15% today. Srestha Finvest’s performance, while poor, slightly outpaced the sector’s fall, suggesting some relative resilience despite the overall negative environment. The broader market volatility, as evidenced by the Sensex’s sharp reversal, adds to the challenging backdrop for the stock.

Summary of Key Metrics

To summarise, Srestha Finvest Ltd’s stock has reached a historic low of Rs.0.25, reflecting a year-long decline of over 60%. The company’s financial results show significant contraction in sales and deep losses, with operating cash flows remaining negative. The Mojo Grade of Strong Sell and a low Market Cap Grade reinforce the cautious stance on the stock’s current standing. Trading below all major moving averages, the stock remains under pressure amid a challenging NBFC sector and volatile market conditions.

While the stock has marginally outperformed the sector today, the overall trend remains subdued, with fundamental indicators pointing to ongoing difficulties in business performance and profitability.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →