Star Housing Finance Faces Volatility Amid Broader Market Resilience and Record Sales Growth
Star Housing Finance has faced notable volatility, hitting a 52-week low and underperforming its sector. Despite reporting consistent quarterly profits and record net sales, the stock's long-term fundamentals appear weak, with a significant decline over the past year compared to broader market performance.
Star Housing Finance has experienced significant volatility today, reaching a new 52-week low of Rs. 29. The stock has underperformed its sector by 3.6% and has seen a consecutive decline over the past three days, resulting in a total drop of nearly 10%. Currently, Star Housing Finance is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.In contrast, the broader market has shown resilience, with the Sensex rising sharply by 1.53% today. Small-cap stocks are leading the market, with the BSE Small Cap index gaining 2.73%. Despite the challenging market conditions, Star Housing Finance has reported positive results over the last 12 consecutive quarters, with a net profit after tax of Rs. 8.12 crore, reflecting a growth of 32.25%. The company’s net sales reached a record high of Rs. 24.03 crore.
However, the stock's long-term fundamentals remain weak, evidenced by an average return on equity of 6.10%. Over the past year, Star Housing Finance has seen a decline of 39.03%, contrasting sharply with the Sensex's performance of 3.51%.
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