Stock Performance and Market Context
On 2 December 2025, Star Housing Finance touched its lowest price point in the past year at Rs.10.5. This level represents a sharp contrast to its 52-week high of Rs.36.8, reflecting a substantial contraction in market value. The stock recorded a day change of -1.25%, although it marginally outperformed its sector by 0.99% on the same day. Despite this slight relative outperformance, the stock remains entrenched in a downward trend, trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling persistent weakness in price momentum.
The broader market context shows the Sensex opening lower by 316.39 points and trading at 85,276.17, down 0.43% for the day. Notably, the Sensex is positioned close to its 52-week high of 86,159.02, just 1.04% away, and is supported by bullish moving averages with the 50-day moving average above the 200-day moving average. This divergence highlights the relative underperformance of Star Housing Finance compared to the broader market indices.
Long-Term and Recent Financial Trends
Over the last twelve months, Star Housing Finance has recorded a price return of -57.38%, a stark contrast to the Sensex’s positive return of 6.27% over the same period. This underperformance extends beyond the recent year, with the stock also lagging behind the BSE500 index across one-year, three-year, and three-month timeframes.
Financially, the company’s long-term fundamentals have shown limited strength. The average Return on Equity (ROE) stands at 6.10%, which is modest for the housing finance sector. The company’s valuation metrics indicate a Price to Book Value ratio of approximately 1.1, suggesting a fair valuation relative to its book value but trading at a discount compared to its peers’ historical averages.
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Profitability and Recent Earnings
Star Housing Finance’s profitability has shown contraction in recent periods. The company’s Profit After Tax (PAT) for the nine months ended September 2025 stood at Rs.6.15 crores, reflecting a decline of 30.27% compared to the previous corresponding period. This reduction in earnings aligns with the stock’s price performance, which has seen a return of -56.99% over the past year.
Further, the company’s profits have fallen by 27.8% over the last twelve months, indicating pressures on its earnings capacity. These figures underscore the challenges faced by the company in maintaining growth and profitability in a competitive housing finance sector.
Shareholding and Valuation Considerations
The majority of Star Housing Finance’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The stock’s valuation, while fair on a Price to Book basis, remains discounted relative to sector peers’ historical valuations, reflecting market caution.
Despite the recent six-day consecutive decline, the stock showed signs of a short-term gain on the day it hit the 52-week low, suggesting some degree of price consolidation or technical support at these levels. However, the overall trend remains subdued.
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Sector and Market Comparison
Within the housing finance sector, Star Housing Finance’s recent performance contrasts with broader market trends. While the Sensex and sector indices maintain positions near their highs, supported by positive moving averages, Star Housing Finance’s stock price remains well below its key moving averages, indicating a divergence from sector momentum.
The company’s average ROE of 5.6% and Price to Book ratio of 1.1 suggest a valuation that is not excessively stretched, yet the stock’s price trajectory and earnings contraction highlight ongoing challenges in regaining investor confidence and market standing.
Summary of Key Metrics
To summarise, Star Housing Finance’s stock has reached Rs.10.5, its lowest level in the past year, with a year-to-date price return of approximately -57%. Earnings for the nine months ending September 2025 have declined by over 30%, and profits over the last year have fallen by nearly 28%. The stock trades below all major moving averages and remains out of step with the broader market’s positive momentum.
These factors collectively illustrate the current market assessment of Star Housing Finance’s financial and operational position within the housing finance sector.
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