Stock Price Movement and Market Context
On 25 Feb 2026, Star Housing Finance Ltd’s share price reached Rs.7.61, the lowest level recorded in the past year and an all-time low for the company. This decline comes after six consecutive trading sessions of losses, cumulatively eroding 12.64% of the stock’s value during this period. The stock’s day change was recorded at -2.04%, underperforming its sector by 2.62% on the same day.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. This technical positioning highlights the stock’s weakness relative to its recent trading history and broader market momentum.
In contrast, the Sensex opened higher at 82,530.12 points, gaining 304.20 points (0.37%) before settling near 82,239.43 points with a marginal gain of 0.02%. The benchmark index remains 4.77% below its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. Despite the positive market backdrop, Star Housing Finance Ltd has lagged significantly behind, reflecting company-specific challenges.
Long-Term Performance and Relative Underperformance
Over the past year, Star Housing Finance Ltd has delivered a negative return of -72.01%, a stark contrast to the Sensex’s positive 10.23% gain over the same period. This underperformance extends beyond the last 12 months, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods. Such sustained underperformance indicates structural issues impacting the company’s market valuation and investor confidence.
The stock’s 52-week high was Rs.32.51, underscoring the magnitude of the decline from its peak to the current low of Rs.7.61. This represents a drop of over 76%, highlighting the significant erosion of shareholder value over the last year.
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Financial Metrics and Profitability Trends
Star Housing Finance Ltd’s financial performance has shown signs of deterioration, contributing to the stock’s weak market performance. The company reported a quarterly Profit After Tax (PAT) of Rs.0.49 crore, reflecting a sharp decline of 76.0% compared to previous periods. Earnings before interest, depreciation, taxes and amortisation (PBDIT) also hit a low of Rs.14.81 crore in the latest quarter.
The operating profit to net sales ratio dropped to 57.36%, the lowest recorded in recent quarters, indicating pressure on the company’s core profitability. These figures underscore the challenges faced in maintaining earnings quality and operational efficiency.
Return on Equity (ROE), a key measure of financial health, averaged 6.10% over the long term but has recently declined to 4.5%. While this lower ROE is accompanied by a very attractive valuation metric—a price-to-book value of 0.4—it reflects subdued profitability relative to shareholder equity.
Promoter Stake and Market Confidence
Another notable development is the reduction in promoter shareholding. Promoters have decreased their stake by 0.71% over the previous quarter, now holding 17.65% of the company’s equity. This reduction may be interpreted as a signal of diminished confidence in the company’s near-term prospects.
Such changes in promoter holdings often attract market attention, especially when accompanied by weak financial results and declining stock prices.
Valuation and Peer Comparison
Despite the negative price performance and earnings decline, Star Housing Finance Ltd’s valuation remains comparatively low. The stock trades at a significant discount relative to its peers’ historical averages, which may reflect market concerns about its growth trajectory and risk profile.
Profitability has contracted by 38.9% over the past year, further weighing on valuation multiples. The company’s market capitalisation grade is rated at 4, indicating a relatively small market cap within its sector.
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Mojo Score and Rating Update
Star Housing Finance Ltd currently holds a Mojo Score of 17.0, categorised under a Strong Sell rating. This represents a downgrade from its previous Sell rating as of 6 Feb 2026. The downgrade reflects the company’s weakening fundamentals and deteriorating financial metrics, reinforcing the cautious stance on the stock.
The rating change aligns with the company’s ongoing challenges, including declining profitability, reduced promoter confidence, and sustained underperformance relative to the broader market and sector peers.
Summary of Key Data Points
To summarise, the stock’s key metrics as of 25 Feb 2026 are:
- New 52-week and all-time low price: Rs.7.61
- One-year return: -72.01%
- Sensex one-year return: +10.23%
- Promoter holding: 17.65% (down 0.71% QoQ)
- Quarterly PAT: Rs.0.49 crore (-76.0%)
- Quarterly PBDIT: Rs.14.81 crore (lowest)
- Operating profit to net sales ratio: 57.36% (lowest)
- Return on Equity (ROE): 4.5%
- Price to Book Value: 0.4
- Mojo Grade: Strong Sell (upgraded from Sell)
These figures collectively illustrate the pressures faced by Star Housing Finance Ltd in maintaining its market position and financial health.
Market Position and Sector Context
Operating within the Housing Finance Company sector, Star Housing Finance Ltd’s performance contrasts with the broader sector trends, where many peers have maintained relatively stable valuations and earnings. The company’s challenges have resulted in a market cap grade of 4, indicating a smaller scale compared to larger competitors.
The stock’s persistent decline and valuation discount highlight the need for careful analysis of its financial and strategic positioning within the sector.
Conclusion
Star Housing Finance Ltd’s fall to a 52-week low of Rs.7.61 reflects a combination of subdued financial results, reduced promoter confidence, and sustained underperformance relative to market benchmarks. The stock’s technical indicators and fundamental metrics point to ongoing challenges in reversing the downtrend. While the valuation remains attractive on certain measures, the company’s recent financial performance and market rating underscore the cautious environment surrounding the stock.
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