Stock Price Movement and Market Context
On 24 Nov 2025, Star Housing Finance's share price touched Rs.15.03, the lowest level recorded in the past year. Despite a modest gain of 1.94% over the preceding three days, the stock remains below its key moving averages, trading above the 5-day average but below the 20-day, 50-day, 100-day, and 200-day moving averages. This positioning indicates a short-term recovery attempt amid a longer-term subdued trend.
In contrast, the broader market has shown resilience. The Sensex opened 88.12 points higher and was trading at 85,394.57, representing a 0.19% gain. The index is nearing its 52-week high of 85,801.70, with a 0.48% gap remaining. The Sensex has also recorded a three-week consecutive rise, accumulating a 2.62% gain, supported by strong performances from mega-cap stocks. This divergence highlights the relative underperformance of Star Housing Finance within the current market environment.
Financial Performance and Valuation Metrics
Star Housing Finance's financial indicators over the past year reveal a challenging scenario. The stock has delivered a negative return of 39.35%, while the Sensex has shown a positive return of 7.91% over the same period. Profitability metrics have also reflected pressure, with the company’s profit after tax (PAT) for the latest six months reported at Rs.3.17 crores, showing a decline of 47.86% compared to previous periods.
The company’s return on equity (ROE) stands at an average of 6.10%, with the latest figure at 5.6%. This level of ROE is considered modest within the housing finance sector, especially when juxtaposed with the stock’s valuation. The price-to-book value ratio is approximately 1.5, indicating that the stock is trading at a premium relative to its book value and compared to historical valuations of its peers. This premium valuation amid subdued profitability may be a factor influencing investor sentiment and price movement.
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Long-Term and Sectoral Performance
Over a three-year horizon, Star Housing Finance has underperformed the BSE500 index, reflecting persistent challenges in maintaining competitive growth and profitability. The stock’s 52-week high was Rs.36.80, underscoring the extent of the decline to the current low of Rs.15.03. This downward trajectory has been accompanied by a reduction in profits by 27.8% over the past year, signalling pressures on the company’s earnings capacity.
The housing finance sector itself has experienced varied performance, with some companies demonstrating stronger fundamentals and valuation metrics. Star Housing Finance’s position within this sector is marked by a relatively weak long-term fundamental strength, as indicated by its ROE and profit trends.
Shareholding Pattern and Market Dynamics
The majority of Star Housing Finance’s shares are held by non-institutional investors, which may influence trading volumes and price volatility. The stock’s market capitalisation grade is relatively low, reflecting its micro-cap status within the housing finance industry. This classification can affect liquidity and investor attention compared to larger peers.
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Summary of Current Position
Star Housing Finance’s recent fall to a 52-week low of Rs.15.03 encapsulates a period of subdued performance characterised by declining profits, modest returns on equity, and a valuation premium relative to its fundamentals. While the stock has shown some short-term gains over the last three days, it remains below key moving averages that typically indicate longer-term momentum.
The broader market environment, with the Sensex approaching its own 52-week high and supported by mega-cap strength, contrasts with the stock’s trajectory. This divergence highlights the challenges faced by Star Housing Finance in regaining ground within the housing finance sector and the wider equity market.
Investors and market participants observing Star Housing Finance will note the interplay of valuation, profitability, and market positioning as key factors shaping the stock’s current status.
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