Stock Performance and Market Context
On 17 Dec 2025, Sri Lakshmi Saraswathi Textiles (Arni) recorded an intraday low and closing price of Rs.30.05, representing a decline of 5.68% from the previous close. The stock opened with a gap down at this price and remained at this level throughout the trading day, indicating a lack of upward momentum. This performance contrasts with the broader market, where the Sensex opened higher at 84,856.26 points, gaining 176.40 points or 0.21%, before settling near 84,681.40 points. The Sensex is currently trading close to its 52-week high of 86,159.02, supported by bullish moving averages.
In comparison, Sri Lakshmi Saraswathi Textiles (Arni) has underperformed significantly over the past year, with a total return of -28.69%, while the Sensex has shown a positive return of 4.95% during the same period. The stock’s 52-week high was Rs.51.80, highlighting the extent of the decline to the current low.
Trading Patterns and Moving Averages
The stock’s trading activity has been erratic in recent weeks, with no trades recorded on three of the last twenty trading days. This irregularity may reflect subdued investor interest or liquidity constraints. Furthermore, Sri Lakshmi Saraswathi Textiles (Arni) is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Such positioning typically signals a sustained downward trend in price momentum.
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Financial Metrics and Long-Term Trends
Examining the company’s financial fundamentals reveals several areas of concern. Sri Lakshmi Saraswathi Textiles (Arni) has reported a negative book value, indicating that its liabilities exceed its assets. This situation points to weak long-term fundamental strength. Over the past five years, net sales have shown a compound annual growth rate of 7.08%, while operating profit has remained flat, showing no growth. This stagnation in profitability contrasts with the garment and apparel sector’s broader trends.
The company carries a high debt burden, with an average debt-to-equity ratio of zero times, which may reflect a complex capital structure or accounting nuances. Additionally, operating cash flow for the fiscal year was recorded at a low of Rs. -19.00 crores, signalling cash outflows from core business activities. The return on capital employed (ROCE) for the half-year period stood at 32.41%, which is among the lowest levels observed recently.
Other operational metrics such as the debtors turnover ratio for the half-year period was 39.28 times, indicating the frequency with which the company collects its receivables. While this ratio is relatively high, it has not translated into improved liquidity or profitability.
Profitability and Valuation Considerations
Despite the stock’s decline, the company’s profits have shown a rise of 19.8% over the past year. However, this improvement has not been sufficient to offset the overall negative returns experienced by shareholders. The stock’s earnings before interest, taxes, depreciation and amortisation (EBITDA) remain negative, which contributes to its classification as a higher-risk security relative to its historical valuation averages.
Over the last three years, Sri Lakshmi Saraswathi Textiles (Arni) has consistently underperformed the BSE500 index, reflecting challenges in maintaining competitive growth and market positioning within the garments and apparels sector.
Shareholding and Market Position
The majority ownership of the company remains with its promoters, which may influence strategic decisions and capital allocation. The company operates within the garments and apparels industry, a sector that has experienced varied performance across different players depending on market conditions and consumer demand.
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Summary of Current Situation
Sri Lakshmi Saraswathi Textiles (Arni) is currently trading at its lowest price point in the past year, reflecting a combination of subdued trading activity, weak financial fundamentals, and persistent underperformance relative to market benchmarks. The stock’s position below all major moving averages and its gap down opening today underscore the prevailing downward momentum.
While the broader market indices such as the Sensex continue to trade near their highs supported by positive market sentiment, Sri Lakshmi Saraswathi Textiles (Arni) remains under pressure within its sector. The company’s financial indicators, including negative book value and flat operating profit growth, highlight ongoing challenges in sustaining growth and profitability.
Investors and market participants will continue to monitor the stock’s price movements and financial disclosures for further developments.
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