Stock Performance and Market Context
On 26 Feb 2026, Star Housing Finance Ltd (Stock ID: 276081) recorded its lowest price in the past year and all-time at Rs.7.14. This represents a sharp decline from its 52-week high of Rs.32.51, a drop of approximately 78%. The stock has been on a consecutive losing streak for seven trading sessions, delivering a cumulative return of -17.49% during this period. Today’s performance saw the stock fall by 2.28%, underperforming its sector by 2.38%.
In contrast, the broader market has shown resilience. The Sensex opened 142.71 points higher and is currently trading at 82,497.35, up 0.27%. The index remains 4.44% below its 52-week high of 86,159.02. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, signalling a mixed but generally positive market environment. Mega-cap stocks are leading the gains, highlighting a divergence between large-cap and smaller housing finance stocks like Star Housing Finance.
Technical Indicators Highlight Weak Momentum
Star Housing Finance is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates sustained selling pressure and weak momentum. The stock’s inability to hold above these averages suggests that short-term and long-term investor confidence remains subdued.
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Financial Performance and Profitability Trends
The company’s recent quarterly results have reflected a challenging environment. For the quarter ended December 2025, Star Housing Finance reported a Profit Before Tax (PBT) of Rs.0.77 crore, which declined sharply by 74.84% compared to the previous period. Profit After Tax (PAT) also fell by 76.0% to Rs.0.49 crore. Earnings before depreciation, interest, and taxes (PBDIT) stood at Rs.14.81 crore, marking the lowest level recorded in recent quarters.
Over the past year, the company’s profits have contracted by 38.9%, further underscoring the pressures on its earnings capacity. This decline in profitability has contributed to the stock’s poor performance, with a one-year return of -73.46%, significantly lagging the Sensex’s positive 10.58% return over the same period.
Long-Term Fundamental Strength and Valuation Metrics
Star Housing Finance’s long-term fundamental strength remains weak, as reflected in its average Return on Equity (ROE) of 6.10%. This level is modest relative to industry peers and indicates limited efficiency in generating shareholder returns. The company’s current ROE stands at 4.5%, which, while low, is accompanied by a very attractive valuation with a Price to Book Value ratio of 0.4. This suggests that the stock is trading at a discount compared to its peers’ historical valuations.
Despite the valuation appeal, the company’s consistent underperformance against benchmarks is notable. Star Housing Finance has underperformed the BSE500 index in each of the last three annual periods, reflecting persistent challenges in delivering shareholder value.
Promoter Stake and Confidence Indicators
Promoter confidence appears to be waning, as evidenced by a reduction in their stake by 0.71% over the previous quarter. Currently, promoters hold 17.65% of the company’s equity. Such a decrease in promoter holding may be interpreted as a signal of diminished confidence in the company’s near-term prospects.
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Market Capitalisation and Mojo Ratings
Star Housing Finance holds a Market Cap Grade of 4, indicating a relatively modest market capitalisation within its sector. The company’s Mojo Score stands at 17.0, with a Mojo Grade of Strong Sell as of 6 Feb 2026, an upgrade from the previous Sell rating. This grading reflects the company’s current financial and market challenges, signalling caution in the stock’s outlook based on comprehensive quantitative assessments.
Summary of Key Metrics
To summarise, Star Housing Finance Ltd’s stock has reached a critical low point at Rs.7.14, reflecting a sustained period of decline. The company’s financial results show significant contraction in profits, and its valuation metrics indicate a discounted price relative to peers. However, weak long-term returns, reduced promoter stake, and consistent underperformance against benchmarks highlight ongoing concerns.
While the broader market and sector indices have shown resilience, Star Housing Finance’s share price continues to face downward pressure, trading below all major moving averages and underperforming its sector peers.
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