Stock Price Movement and Market Context
On 4 December 2025, Star Housing Finance's share price touched Rs.8.58, its lowest level in the past year and an all-time low for the company. This price point represents a substantial contraction from its 52-week high of Rs.36.80, indicating a loss of over 76% from that peak. The stock has recorded a consecutive nine-day decline, resulting in a cumulative return of approximately -45.27% during this period.
In comparison, the broader market has shown resilience. The Sensex, after an initial negative opening down by 119.25 points, rebounded to close at 85,256.33, up 0.18% for the day. The index remains close to its 52-week high of 86,159.02, just 1.06% shy, supported by mega-cap stocks and trading above key moving averages such as the 50-day and 200-day moving averages. This divergence highlights the relative weakness of Star Housing Finance within the housing finance sector and the wider market.
Technical Indicators and Trading Patterns
Star Housing Finance is currently trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests sustained downward momentum and a lack of short-term support levels. The stock underperformed its sector by 5.93% on the day it hit the 52-week low, further emphasising its relative weakness.
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Financial Performance and Valuation Metrics
Star Housing Finance's financial results over recent periods have shown subdued growth. The company reported a profit after tax (PAT) of Rs.6.15 crores for the nine months ended September 2025, reflecting a contraction of 30.27% compared to the previous corresponding period. This decline in profitability aligns with the stock's negative price performance over the past year.
Over the last twelve months, the stock has generated a return of -70.34%, significantly underperforming the Sensex, which recorded a positive return of 5.32% during the same timeframe. Additionally, the company’s return on equity (ROE) averaged 6.10%, indicating modest profitability relative to shareholder equity. The ROE for the most recent period stood at 5.6%, which, while modest, is accompanied by a price-to-book value ratio of 0.9. This valuation metric suggests the stock is trading at a discount relative to its book value, and below the average historical valuations of its peers in the housing finance sector.
Long-Term Performance and Shareholding Structure
Star Housing Finance has underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in maintaining competitive returns. The company’s market capitalisation is graded at a lower level, reflecting its micro-cap status within the housing finance industry.
The majority of the company’s shares are held by non-institutional investors, which may influence trading liquidity and price volatility. This shareholder composition can affect market dynamics, particularly during periods of price weakness.
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Sector and Market Environment
The housing finance sector has experienced mixed performance in recent months, with some companies showing resilience while others face headwinds. Star Housing Finance’s share price trajectory contrasts with the broader market’s positive momentum, as reflected by the Sensex’s proximity to its 52-week high and its bullish technical indicators.
Despite the sector’s challenges, Star Housing Finance’s valuation metrics indicate it is trading at a discount compared to its peers. However, the company’s subdued profitability and negative returns over the past year highlight ongoing pressures that have contributed to the stock’s decline to its current low.
Summary of Key Price and Performance Data
To summarise, Star Housing Finance’s stock price has reached Rs.8.58, its lowest level in 52 weeks and all-time trading history. The stock has declined by approximately 70% over the past year, underperforming the Sensex by a wide margin. The company’s financial results show a contraction in profits and modest return on equity, while valuation metrics suggest the stock is trading below book value and at a discount to sector peers.
Trading below all major moving averages and experiencing a nine-day consecutive fall, the stock’s technical indicators point to continued downward pressure. Meanwhile, the broader market and housing finance sector have demonstrated relative strength, underscoring the divergence in performance.
Conclusion
Star Housing Finance’s fall to a 52-week low of Rs.8.58 reflects a combination of subdued financial results, valuation considerations, and technical weakness. The stock’s performance over the past year and recent trading patterns highlight the challenges faced by the company within the housing finance sector. Market participants will continue to monitor the stock’s price action and financial disclosures as part of their ongoing assessment of the company’s position in the sector.
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