Stock Price Movement and Market Context
On 24 Nov 2025, Star Housing Finance's stock price touched Rs.15.03, the lowest level recorded in the past year. Despite a modest gain of 1.94% over the last three trading sessions, the stock remains below its key moving averages, trading higher than the 5-day moving average but below the 20-day, 50-day, 100-day, and 200-day moving averages. This positioning indicates a short-term recovery attempt within a broader downtrend.
In comparison, the broader market has shown resilience. The Sensex opened 88.12 points higher and was trading at 85,394.57, up 0.19% on the day. The index is approaching its 52-week high of 85,801.70, currently just 0.48% away. The Sensex has also recorded a three-week consecutive rise, gaining 2.62% over this period, supported by strong performances from mega-cap stocks. This divergence highlights the relative weakness of Star Housing Finance within the housing finance sector and the wider market.
Financial Performance and Valuation Metrics
Star Housing Finance's financial results over the past year have shown subdued growth and profitability. The company reported a profit after tax (PAT) of Rs.3.17 crores for the latest six-month period, reflecting a contraction of 47.86% compared to the previous corresponding period. This decline in profitability has contributed to the stock's downward pressure.
The company’s return on equity (ROE) averaged 6.10%, indicating modest returns relative to equity invested. The latest reported ROE stands at 5.6%, which, when considered alongside a price-to-book value of 1.5, suggests the stock is trading at a premium relative to its historical valuation and peer group averages. This valuation dynamic may be a factor in the stock's subdued market performance.
Over the last year, Star Housing Finance's stock has generated a return of -39.35%, contrasting with the Sensex’s positive return of 7.91% over the same period. Additionally, the company’s profits have declined by 27.8% year-on-year, underscoring the challenges faced in maintaining earnings growth.
Fundamentals that don't lie! This Small Cap from Trading shows consistent growth and price strength over time. A reliable pick you can truly count on.
- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
Long-Term and Sectoral Performance
Star Housing Finance has underperformed not only in the recent year but also over longer time horizons. The stock’s returns have lagged behind the BSE500 index over the last three years, one year, and three months. This underperformance is notable within the housing finance sector, where peers have generally maintained steadier growth and valuation metrics.
The stock’s 52-week high was Rs.36.80, indicating a significant decline of nearly 59% from that peak to the current 52-week low. This wide price range reflects the volatility and challenges the company has faced in sustaining investor confidence and market momentum.
Majority shareholding remains with non-institutional investors, which may influence liquidity and trading patterns in the stock. The company’s market capitalisation grade is relatively low, reflecting its smaller size and market presence compared to larger housing finance companies.
Sector and Market Environment
The housing finance sector has experienced mixed trends, with some companies benefiting from improving credit demand and others facing valuation pressures. Star Housing Finance’s current valuation and financial metrics suggest it is positioned towards the lower end of the sector spectrum in terms of performance and market perception.
Meanwhile, the broader market environment remains constructive, with the Sensex trading above its 50-day moving average and the 50-day average itself positioned above the 200-day moving average, signalling a bullish trend. This contrast highlights the stock-specific factors influencing Star Housing Finance’s price movements.
Is Star Housing Finance your best bet? SwitchER suggests better alternatives across peers, market caps, and sectors. Discover stocks that could deliver more for your portfolio!
- - Better alternatives suggested
- - Cross-sector comparison
- - Portfolio optimization tool
Summary of Key Metrics
To summarise, Star Housing Finance’s recent stock price of Rs.15.03 marks a 52-week low, reflecting a year-long return of -39.35% and a profit contraction of 27.8%. The company’s ROE remains modest at 6.10%, with a price-to-book ratio of 1.5 indicating valuation above peer averages. Despite a short-term gain of 1.94% over the past three days, the stock remains below several key moving averages, signalling ongoing pressure.
The broader market and housing finance sector have shown more positive trends, with the Sensex nearing its 52-week high and trading above key moving averages. Star Housing Finance’s relative underperformance highlights the challenges it faces in regaining momentum within this environment.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
