Recent Price Movement and Market Context
On 20 Feb 2026, Star Housing Finance Ltd’s stock price fell by 4.89% in a single trading session, underperforming its sector by 4.09%. This decline extended a three-day losing streak, during which the stock has dropped by 6.43%. The current price of Rs.8.17 represents both a fresh 52-week and all-time low, a stark contrast to its 52-week high of Rs.32.51.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. This contrasts with the broader market, where the Sensex recovered sharply after an initial negative opening, closing at 82,889.41, up 0.47%. The Sensex remains within 3.94% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks.
Financial Performance and Fundamental Indicators
Star Housing Finance Ltd’s financial metrics continue to reflect challenges. The company reported a quarterly profit after tax (PAT) of Rs.0.49 crore for the December 2025 quarter, a steep decline of 76.0% compared to the previous period. Earnings before interest, depreciation, taxes and amortisation (PBDIT) also hit a low of Rs.14.81 crore, with operating profit to net sales ratio dropping to 57.36%, the lowest recorded in recent quarters.
Over the past year, the company’s profits have decreased by 38.9%, while the stock price has plummeted by 69.62%. This contrasts sharply with the Sensex’s 9.45% gain over the same period, highlighting the stock’s underperformance relative to the broader market.
Shareholder Confidence and Promoter Activity
Promoter shareholding has declined by 0.71% in the previous quarter, now standing at 17.65%. This reduction in promoter stake may be interpreted as a sign of diminished confidence in the company’s near-term prospects. Such movements often influence market perception and can contribute to downward pressure on the stock price.
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Long-Term Performance and Valuation Metrics
Star Housing Finance Ltd’s long-term performance has been below par. The stock has underperformed the BSE500 index over the last three years, one year, and three months. Its average return on equity (ROE) stands at 6.10%, indicating modest profitability relative to equity capital employed.
Despite the weak returns, the stock’s valuation metrics suggest a very attractive price point. The company’s ROE for the latest period is 4.5%, and it trades at a price-to-book value of 0.5, indicating that the market values the company at half its book value. This valuation is at a discount compared to its peers’ average historical valuations within the housing finance sector.
Sector and Market Comparison
Within the housing finance sector, Star Housing Finance Ltd’s performance contrasts with the broader market’s resilience. While the Sensex and mega-cap stocks have shown gains, this stock’s persistent decline highlights sector-specific and company-specific pressures. The company’s Mojo Score of 17.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 6 Feb 2026, reflect the current assessment of its financial health and market position.
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Summary of Key Metrics
To summarise, Star Housing Finance Ltd’s stock has reached a new low of Rs.8.17, reflecting a 69.62% decline over the past year. The company’s quarterly PAT has fallen by 76.0%, and PBDIT is at its lowest level of Rs.14.81 crore. Promoter stake has decreased to 17.65%, and the stock trades below all major moving averages. Despite a low price-to-book ratio of 0.5 and a modest ROE of 4.5%, the overall financial and market indicators point to continued challenges for the company.
Meanwhile, the broader market environment remains relatively positive, with the Sensex near its 52-week high and supported by gains in mega-cap stocks. This divergence underscores the specific pressures facing Star Housing Finance Ltd within the housing finance sector.
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