Sunshine Capital Faces Severe Decline Amidst Institutional Withdrawal and Weak Financials

Sunshine Capital, a microcap player in the Non-Banking Financial Company (NBFC) sector, has experienced significant volatility today, hitting a new 52-week low of Rs. 0.34. This decline comes after a three-day streak of losses, although the stock has managed to outperform its sector by 2.26% today. Despite this brief uptick, Sunshine Capital's performance over the past year remains concerning, with a staggering decline of 89.83%, contrasting sharply with the Sensex's positive growth of 5.82%.
The company's financial metrics reveal troubling trends. For the nine-month period ending March 2025, net sales plummeted by 91.83% to Rs. 6.06 crore, while the profit after tax (PAT) fell dramatically by 429.7%, reaching Rs. -5.91 crore. Additionally, the stock is trading below all key moving averages, indicating persistent weakness in its price performance.

Institutional investor participation has also waned, with a 72.46% reduction in stakes over the last quarter, leaving them with only 0.53% ownership. Despite these challenges, Sunshine Capital has reported a long-term fundamental strength, with a 23.67% compound annual growth rate (CAGR) in net sales.