Star Housing Finance Ltd Falls to 52-Week Low of Rs.7.79 Amid Continued Downtrend

Recent Price Movement and Market Context

On 23 Feb 2026, Star Housing Finance Ltd’s share price hit Rs.7.79, the lowest level recorded in the past year and an all-time low for the company. This price point represents a sharp contrast to its 52-week high of Rs.32.51, underscoring a steep depreciation of approximately 76.1% over the period. The stock has been on a losing streak for four consecutive trading sessions, shedding nearly 9.71% in returns during this span.

In comparison, the Sensex index has shown resilience, closing at 83,337.14 points, up 0.63% on the day and just 3.39% shy of its own 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 cautiously positive medium-term trend for the broader market. Mega-cap stocks have been the primary drivers of this market strength, contrasting with the weaker performance of mid and small caps such as Star Housing Finance Ltd.

Star Housing Finance Ltd’s stock price currently trades below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating sustained bearish momentum and a lack of short-term recovery signals.

Financial Performance and Fundamental Metrics

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 steep decline of 76.0% compared to the previous corresponding period. Operating profit before depreciation, interest and taxes (PBDIT) also reached a low of Rs.14.81 crore, signalling pressure on core earnings.

The operating profit to net sales ratio for the quarter stood at 57.36%, the lowest recorded in recent periods, highlighting margin compression. Return on equity (ROE) remains subdued at an average of 6.10%, reflecting limited profitability relative to shareholder funds. This weak long-term fundamental strength has contributed to the stock’s downgrade from a 'Sell' to a 'Strong Sell' rating by MarketsMOJO on 6 Feb 2026, with a current Mojo Score of 17.0.

Promoter confidence appears to be waning, as evidenced by a reduction in promoter shareholding by 0.71% over the previous quarter, bringing their stake down to 17.65%. Such a decrease may indicate diminished conviction in the company’s near-term prospects.

Over the past year, Star Housing Finance Ltd has generated a negative return of 70.21%, significantly underperforming the Sensex’s positive 10.66% gain. The stock has also consistently lagged behind the BSE500 index in each of the last three annual periods, underscoring persistent relative underperformance.

Valuation and Comparative Analysis

Despite the weak earnings and price performance, the stock’s valuation metrics suggest it is trading at a discount relative to its peers. The price-to-book value ratio stands at a low 0.4, which is considered very attractive from a valuation standpoint. The company’s ROE of 4.5% further supports this discounted valuation, although it also reflects the challenges in generating returns on equity.

Profitability has also declined over the last year, with profits falling by 38.9%, adding to the concerns about the company’s financial health. This combination of low valuation and deteriorating earnings highlights the complex position Star Housing Finance Ltd currently occupies within the housing finance sector.

Sector and Market Positioning

Operating within the housing finance sector, Star Housing Finance Ltd faces stiff competition from larger and more financially robust players. The sector itself has seen mixed performance, with some companies benefiting from improving credit demand and others grappling with asset quality pressures. Star Housing Finance Ltd’s market capitalisation grade of 4 reflects its relatively small size and limited market influence compared to mega-cap peers leading the Sensex gains.

The company’s ongoing challenges in maintaining profitability and shareholder value have been reflected in its stock price trajectory, which has failed to keep pace with sectoral or market benchmarks. This divergence has been particularly pronounced over the last three years, where the stock has consistently underperformed key indices.

Summary of Key Metrics

To summarise, Star Housing Finance Ltd’s key financial and market metrics as of 23 Feb 2026 are:

• New 52-week low price: Rs.7.79
• 52-week high price: Rs.32.51
• One-year stock return: -70.21%
• Sensex one-year return: +10.66%
• Quarterly PAT: Rs.0.49 crore, down 76.0%
• Quarterly PBDIT: Rs.14.81 crore (lowest)
• Operating profit to net sales ratio: 57.36%
• Average ROE: 6.10%
• Promoter stake: 17.65%, down 0.71% from previous quarter
• Mojo Score: 17.0 (Strong Sell), downgraded from Sell on 6 Feb 2026
• Price-to-book value: 0.4

These figures illustrate the stock’s current valuation and performance challenges within the housing finance sector and the broader market environment.

Conclusion

Star Housing Finance Ltd’s fall to a 52-week low of Rs.7.79 highlights the ongoing difficulties faced by the company in maintaining financial stability and market confidence. The stock’s sustained underperformance relative to the Sensex and its sector peers, combined with declining profitability and reduced promoter holdings, have contributed to its current valuation and rating status. While the stock trades at a discount on price-to-book metrics, the fundamental indicators reflect a cautious outlook on its near-term financial health and market position.

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