Star Housing Finance Faces Volatility Despite Strong Sales Growth and Profit Increase

Star Housing Finance has experienced significant volatility, hitting a new 52-week low of Rs. 24.68 today. The stock has been on a downward trajectory, marking its eighth consecutive day of losses, resulting in a total decline of 24.85% during this period. In comparison to its sector, Star Housing Finance underperformed by 1.27% today.
Despite these challenges, the company reported a robust growth in net sales, which increased by 69.69% for the nine months ending March 2025, totaling Rs. 73.65 crore. Additionally, the company has consistently delivered positive results for the last 13 quarters, with a notable growth in profit before tax (PBT) of 228.83% in the latest quarter.

However, the long-term outlook appears weak, with a return on equity (ROE) averaging 5.73%. Over the past year, the stock has declined by 50.96%, contrasting sharply with the Sensex's minimal drop of 0.08%. Star Housing Finance is currently trading below all key moving averages, indicating a challenging market position. The stock's valuation remains attractive, with a price-to-book ratio of 1.4, suggesting it is trading at a discount relative to its peers.