Stock Performance and Market Context
On 27 Feb 2026, Star Housing Finance Ltd’s share price fell by 3.92% to reach Rs.6.8, its lowest level in the past year and an all-time low. This decline comes after eight consecutive days of losses, during which the stock has shed 22.23% of its value. The stock’s recent underperformance is notable against the backdrop of the Sensex, which, despite a negative close of 0.43% at 81,890.88 points, has not experienced a comparable decline.
Star Housing Finance Ltd has lagged significantly behind the benchmark indices over the last year, delivering a negative return of 74.69%, while the Sensex posted a positive return of 9.76% during the same period. The stock’s 52-week high was Rs.32.51, underscoring the steep erosion in value over the past twelve months.
Technical indicators also highlight the stock’s weak momentum. It is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bearish sentiment among market participants. In contrast, the Sensex, although trading below its 50-day moving average, maintains a positive technical structure with its 50DMA above the 200DMA.
Built for the long haul! Consecutive quarters of strong growth landed this Small Cap from Chemicals on our Reliable Performers list. Sustainable gains are clearly ahead!
- - Long-term growth stock
- - Multi-quarter performance
- - Sustainable gains ahead
Financial Metrics and Profitability Trends
Star Housing Finance Ltd’s financial results have reflected a challenging environment. The company reported a quarterly profit after tax (PAT) of Rs.0.49 crore in the December 2025 quarter, representing a sharp decline of 76.0% compared to the previous period. Earnings before interest, depreciation, taxes and amortisation (PBDIT) also reached a low of Rs.14.81 crore, indicating pressure on core profitability.
The operating profit to net sales ratio for the quarter stood at 57.36%, the lowest recorded in recent periods, signalling margin compression. These figures contribute to the company’s weak long-term fundamental strength, with an average return on equity (ROE) of just 6.10%, which is below industry norms for housing finance companies.
Despite these challenges, the stock’s valuation metrics suggest it is trading at a discount relative to peers. The price-to-book value ratio is 0.4, and the ROE based on recent data is 4.5, indicating a very attractive valuation from a purely numerical standpoint. However, this valuation reflects the market’s cautious stance given the company’s recent performance and outlook.
Promoter Stake and Market Confidence
Another factor contributing to the stock’s decline 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 sign of diminished confidence in the company’s near-term prospects.
Consistent underperformance against benchmarks has been a persistent theme for Star Housing Finance Ltd. Over the last three annual periods, the stock has underperformed the BSE500 index, compounding concerns about its competitive positioning and growth trajectory within the housing finance sector.
Is Star Housing Finance Ltd your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Sector and Industry Positioning
Operating within the housing finance sector, Star Housing Finance Ltd faces stiff competition from peers who have generally maintained stronger financial metrics and market valuations. The company’s market capitalisation grade is rated 4, reflecting its relatively modest size and market presence within the 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 deteriorated financial health and market performance, signalling caution in the stock’s outlook.
While the stock’s valuation metrics may appear attractive, the combination of declining profitability, reduced promoter confidence, and persistent underperformance against benchmarks has weighed heavily on its market price, culminating in the recent 52-week low.
Summary of Key Data Points
To summarise, Star Housing Finance Ltd’s stock has reached Rs.6.8, its lowest price in 52 weeks and all time, after a sustained period of decline. The stock has underperformed its sector by 3.15% today and has fallen 22.23% over the last eight trading sessions. Its one-year return of -74.69% starkly contrasts with the Sensex’s positive 9.76% return.
Financially, the company’s quarterly PAT fell by 76.0% to Rs.0.49 crore, with PBDIT at Rs.14.81 crore and operating profit to net sales ratio at 57.36%, all indicating pressure on earnings. Promoter shareholding has decreased to 17.65%, and the stock trades below all major moving averages.
Despite a low price-to-book ratio of 0.4 and an ROE of 4.5, the overall market sentiment remains subdued, reflected in the Strong Sell Mojo Grade and the stock’s continued underperformance relative to peers and indices.
Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →
