Stock Performance and Market Context
On 3 December 2025, Star Housing Finance's share price touched Rs.10, its lowest level in the past year and an all-time low. This price point represents a substantial reduction from its 52-week high of Rs.36.80. Over the last eight trading days, the stock has recorded a cumulative return of -37.11%, underperforming its sector by 2.02% on the day of the new low.
The broader market environment has been mixed. The Sensex opened flat but declined by 296.73 points, or 0.33%, closing at 84,853.91. Despite this, the Sensex remains within 1.54% of its 52-week high of 86,159.02 and is trading above its 50-day and 200-day moving averages, indicating a generally bullish trend for the benchmark index. In contrast, Star Housing Finance is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained weakness in its price momentum.
Financial Metrics Reflecting Challenges
Star Housing Finance's financial indicators over the past year highlight a challenging operating environment. The company’s return on equity (ROE) averaged 6.10%, which is considered modest within the housing finance industry. Profit after tax (PAT) for the nine months ended September 2025 stood at Rs.6.15 crore, showing a decline of 30.27% compared to the previous period. This contraction in profitability aligns with the stock’s negative price performance.
Over the last twelve months, the stock has delivered a total return of -63.59%, significantly lagging behind the Sensex’s 4.99% gain during the same period. Additionally, Star Housing Finance has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, underscoring persistent relative weakness.
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Valuation and Shareholding Structure
The stock is currently trading at a price-to-book value of approximately 1, which suggests a fair valuation relative to its book value. This valuation is at a discount compared to the average historical valuations of its peers within the housing finance sector. Despite the subdued price levels, the company’s return on equity of 5.6% indicates moderate capital efficiency.
Majority ownership of Star Housing Finance rests with non-institutional shareholders, which may influence liquidity and trading dynamics. The stock’s market capitalisation grade is relatively low, reflecting its smaller size and limited market presence compared to larger housing finance companies.
Sector and Market Comparison
Within the housing finance sector, Star Housing Finance’s performance contrasts with broader market trends. While the Sensex maintains a bullish stance supported by moving averages, Star Housing Finance’s share price trajectory remains subdued. The sector itself has experienced mixed results, with some companies maintaining stable valuations and others facing headwinds due to economic and regulatory factors.
The stock’s underperformance relative to the BSE500 index over multiple periods highlights challenges in maintaining competitive growth and profitability. The decline in profits by 27.8% over the past year further emphasises the pressures on the company’s earnings capacity.
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Recent Trading Trends and Moving Averages
Star Housing Finance’s share price has consistently traded below all major moving averages, including short-term (5-day, 20-day) and long-term (50-day, 100-day, 200-day) averages. This persistent positioning below key technical levels indicates a lack of upward momentum and suggests that the stock remains under selling pressure.
The continuous decline over eight trading sessions has contributed to the stock’s current valuation at Rs.10, a level not seen in the past year. This trend contrasts with the broader market, where the Sensex continues to hold above its 50-day and 200-day moving averages, signalling relative strength in the benchmark index.
Profitability and Return Metrics
Star Housing Finance’s average return on equity of 6.10% over the last year reflects modest profitability in comparison to industry standards. The company’s profit after tax for the nine months ended September 2025 was Rs.6.15 crore, representing a contraction of 30.27% from the prior period. This decline in earnings aligns with the stock’s downward price movement and highlights the challenges faced in generating consistent profits.
Over the past year, the company’s profits have fallen by 27.8%, further underscoring the pressures on its financial performance. These factors contribute to the stock’s subdued market valuation and its position at a 52-week low.
Summary of Key Data Points
To summarise, Star Housing Finance’s stock has reached Rs.10, its lowest price in the last 52 weeks and an all-time low. The stock has declined by 63.59% over the past year, significantly underperforming the Sensex, which recorded a 4.99% gain during the same period. Profit after tax for the nine months ended September 2025 was Rs.6.15 crore, down 30.27%, while return on equity averaged 6.10%. The stock trades below all major moving averages and at a price-to-book value of approximately 1, indicating a valuation discount relative to peers.
These data points collectively illustrate the current challenges faced by Star Housing Finance within the housing finance sector and the broader market context.
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