Recent Price Movement and Trading Activity
The stock price of Sterling Green Woods Ltd has been on a declining trajectory, falling by 5.33% over the last two trading sessions. Today's closing price of Rs.23.11 represents the lowest level in the past year, down sharply from its 52-week high of Rs.51.63. This decline has occurred despite a generally positive market environment, with the Sensex gaining 0.29% and trading at 82,511.33 points, just 4.42% below its own 52-week high.
Trading volumes have been somewhat erratic, with the stock not trading on two of the last twenty trading days, indicating possible liquidity concerns or reduced investor participation. Additionally, Sterling Green Woods is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a persistent bearish momentum.
Comparative Market Performance
Over the past year, Sterling Green Woods Ltd has delivered a total return of -46.10%, a stark contrast to the Sensex’s positive return of 10.62% over the same period. This underperformance extends beyond the last year, with the stock lagging the BSE500 index across one-year, three-month, and three-year timeframes. The sector itself has seen mixed performance, but Sterling Green Woods’ decline has been notably steeper than its peers.
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Financial Health and Valuation Metrics
Sterling Green Woods Ltd’s financial indicators reveal ongoing challenges. The company reported operating losses, contributing to a weak long-term fundamental strength assessment. Its debt servicing capacity remains limited, with a Debt to EBITDA ratio of -1.00 times, indicating negative earnings before interest, taxes, depreciation, and amortisation relative to debt levels.
Return on Equity (ROE) has been negative, reflecting the company’s inability to generate profits for shareholders. The Return on Capital Employed (ROCE) stands at a modest 0.8%, which, combined with an enterprise value to capital employed ratio of 1, suggests a valuation that is considered very expensive relative to the returns generated.
Cash and cash equivalents have dwindled to a low of Rs.0.01 crore as of the half-year mark, underscoring liquidity constraints. Despite these challenges, the company’s profits have increased by 70.5% over the past year, a factor that has not yet translated into positive returns for shareholders.
Sector and Market Context
The Hotels & Resorts sector, in which Sterling Green Woods operates, has experienced varied performance across its constituents. While mega-cap stocks have led gains in the broader market, Sterling Green Woods’ market capitalisation grade remains low at 4, reflecting its relatively small size and limited market influence. The company’s Mojo Score has deteriorated to 16.0, with a recent downgrade from a Sell to a Strong Sell rating on 14 July 2025, signalling heightened caution among market analysts.
In contrast, the Sensex continues to show resilience, trading above its 200-day moving average and supported by strong performances from larger-cap stocks. This divergence highlights Sterling Green Woods’ relative weakness within the sector and market.
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Trading Patterns and Market Sentiment
The stock’s recent price action has been characterised by a steady decline, with the last two days marking consecutive losses. The 0.41% drop today further extended the downtrend, underperforming the Hotels & Resorts sector by 0.61%. The lack of trading on certain days within the last month may reflect subdued market interest or uncertainty among participants.
Technical indicators reinforce the bearish outlook, with the stock trading below all major moving averages, a signal often interpreted as a lack of upward momentum. This technical positioning, combined with fundamental concerns, has contributed to the stock’s current valuation and market perception.
Long-Term Performance and Peer Comparison
Over a three-year horizon, Sterling Green Woods Ltd has consistently underperformed the BSE500 index, highlighting persistent challenges in generating shareholder value. The stock’s 52-week high of Rs.51.63 contrasts sharply with the current price, emphasising the scale of the decline.
While the company’s profits have shown a notable increase of 70.5% over the past year, this has not been sufficient to offset losses or improve key financial ratios. The valuation remains discounted relative to historical averages of its peers, reflecting market caution.
Summary of Key Metrics
To summarise, Sterling Green Woods Ltd’s current profile includes:
- New 52-week low price of Rs.23.11
- One-year total return of -46.10%
- Mojo Score of 16.0 with a Strong Sell rating
- Negative ROE and operating losses
- Debt to EBITDA ratio of -1.00 times
- ROCE of 0.8% and enterprise value to capital employed ratio of 1
- Cash and cash equivalents at Rs.0.01 crore (lowest in half-year)
- Trading below all major moving averages
These factors collectively illustrate the challenges faced by Sterling Green Woods Ltd in maintaining its market position and financial stability within the Hotels & Resorts sector.
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