Stock Price Movement and Market Context
On 24 Feb 2026, Star Housing Finance Ltd’s stock price reached Rs.7.72, its lowest level in the past 52 weeks and also an all-time low. This comes after a period of sustained decline, with the stock underperforming its sector and benchmark indices. Despite outperforming its sector by 2.35% on the day it hit this low, the stock remains well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a bearish trend.
In contrast, the broader market has shown mixed signals. The Sensex opened 242.12 points lower and closed down by 486.61 points at 82,565.93, a decline of 0.87%. Although the Sensex is trading below its 50-day moving average, it remains only 4.35% shy of its 52-week high of 86,159.02, indicating relative strength in the broader market compared to Star Housing Finance Ltd’s performance.
Long-Term Performance and Benchmark Comparison
Over the last year, Star Housing Finance Ltd has delivered a negative return of -70.36%, a stark contrast to the Sensex’s positive return of 10.95% over the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the past three annual periods. The stock’s 52-week high was Rs.32.51, highlighting the magnitude of the decline to its current level.
Financial Metrics and Profitability Concerns
The company’s financial results have reflected the pressures on its business. For the quarter ended December 2025, Star Housing Finance Ltd reported a profit after tax (PAT) of Rs.0.49 crore, down by 76.0% compared to the previous period. Earnings before interest, depreciation, taxes and amortisation (PBDIT) also hit a low of Rs.14.81 crore. The operating profit to net sales ratio for the quarter was 57.36%, the lowest recorded, indicating margin pressures.
Return on equity (ROE), a key measure of profitability, averaged a modest 6.10% over the long term, reflecting weak fundamental strength. The most recent ROE figure stands at 4.5%, which, while low, contributes to the stock’s valuation metrics.
Transformation in full progress! This Micro Cap from Auto Ancillary just achieved sustainable profitability after tough times. Be early to witness this powerful comeback story!
- - Sustainable profitability reached
- - Post-turnaround strength
- - Comeback story unfolding
Promoter Stake and Market Confidence
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 shares. Such a decrease in promoter holding may be interpreted as a sign of diminished confidence in the company’s near-term prospects.
Valuation and Relative Attractiveness
Despite the challenges, Star Housing Finance Ltd’s valuation metrics suggest it is trading at a discount relative to its peers. The stock’s price-to-book value stands at a low 0.4, which is considered very attractive in valuation terms. This discount reflects the market’s cautious stance given the company’s recent financial performance and market position.
However, the company’s profits have declined by 38.9% over the past year, reinforcing the subdued earnings environment. The combination of low valuation and deteriorating profitability presents a complex picture for the stock’s current standing.
Technical and Trend Analysis
Technically, the stock has experienced a trend reversal after four consecutive days of decline, showing some gains on the day it hit the 52-week low. Nevertheless, the fact that it remains below all major moving averages indicates that the overall trend remains downward. This technical positioning aligns with the fundamental challenges faced by the company.
Holding Star Housing Finance Ltd from Housing Finance Company? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Metrics
Star Housing Finance Ltd currently holds a Mojo Score of 17.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 6 Feb 2026. The company’s market capitalisation grade is 4, reflecting its relatively small size and market presence. The stock’s day change was neutral at 0.00%, indicating no price movement on the day of the 52-week low.
The company operates within the Housing Finance Company sector and industry, a segment that has faced various pressures in recent times. The stock’s consistent underperformance against benchmarks and peers over multiple years highlights the ongoing challenges it faces.
Conclusion
Star Housing Finance Ltd’s fall to a 52-week low of Rs.7.72 encapsulates a period of sustained underperformance marked by declining profitability, reduced promoter confidence, and a challenging market environment. While the stock’s valuation metrics suggest it is trading at a discount, the financial results and trend indicators reflect the difficulties the company continues to encounter. The stock remains below all major moving averages and has underperformed key indices by a wide margin over the past year, underscoring the cautious stance adopted by the market.
Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today
