Viji Finance Ltd Falls to 52-Week Low Amidst Weak Performance

Stock Price Movement and Market Context

On 19 Feb 2026, Viji Finance Ltd’s stock price reached Rs.1.97, the lowest level recorded in the past year. This represents a sharp fall from its 52-week high of Rs.4.64, indicating a depreciation of over 57%. Despite outperforming its sector by 5.16% on the day, the stock remains well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum.

In contrast, the broader market index, Sensex, experienced volatility on the same day, opening 235.57 points higher but eventually declining by 538.59 points to close at 83,431.23, down 0.36%. The Sensex remains close to its 52-week high of 86,159.02, just 3.27% away, highlighting the divergence between Viji Finance’s performance and the overall market trend.

Long-Term Performance and Relative Underperformance

Over the past year, Viji Finance Ltd has delivered a negative return of -13.41%, significantly lagging behind the Sensex’s positive 9.90% gain during the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, underscoring a sustained period of relative weakness.

This prolonged underperformance has contributed to the stock’s current valuation challenges and investor caution, as reflected in its Mojo Score of 29.0 and a Mojo Grade of Strong Sell, which was downgraded from Sell on 21 Jan 2026. The company’s market capitalisation grade stands at 4, indicating a relatively small market cap compared to peers.

Fundamental Metrics and Promoter Activity

Viji Finance Ltd’s fundamental strength remains subdued, with an average Return on Equity (ROE) of just 1.88% over the long term. This low ROE indicates limited profitability relative to shareholder equity, which has weighed on investor sentiment and valuation multiples.

Adding to concerns, promoter confidence appears to be waning. Promoters have reduced their stake by 0.69% in the previous quarter, bringing their current holding to 53.02%. Such a reduction in promoter shareholding can be interpreted as a cautious stance on the company’s near-term prospects.

Recent Financial Performance Highlights

Despite the stock’s price decline, the company reported positive quarterly results for the period ending December 2025. The Profit Before Depreciation, Interest, and Taxes (PBDIT) reached a quarterly high of Rs.1.31 crore, while Profit Before Tax excluding Other Income (PBT less OI) stood at Rs.1.14 crore. Net Profit After Tax (PAT) also hit a quarterly peak of Rs.0.94 crore.

These figures suggest some operational improvements, although they have yet to translate into sustained stock price recovery or improved market confidence.

Valuation and Comparative Analysis

Viji Finance Ltd currently trades at a Price to Book Value (P/BV) of 1.4, which is considered attractive relative to its peers’ historical valuations. The company’s ROE for the recent quarter improved to 5.7%, indicating a better return on equity in the short term compared to its long-term average.

Moreover, the company’s profits have risen by 163% over the past year, a notable increase despite the stock’s negative return of -13.41%. This disparity is reflected in a low Price/Earnings to Growth (PEG) ratio of 0.1, suggesting that the stock is trading at a discount relative to its earnings growth potential.

Sector and Industry Positioning

Operating within the Non Banking Financial Company (NBFC) sector, Viji Finance Ltd faces competitive pressures and regulatory scrutiny that have influenced its market performance. The sector itself has experienced mixed results, with some companies showing resilience while others have struggled to maintain growth momentum.

The company’s current Mojo Grade of Strong Sell reflects its relative standing within the NBFC sector, signalling caution based on its financial and market metrics.

Summary of Key Concerns

The stock’s fall to Rs.1.97, its 52-week low, is underpinned by several factors: weak long-term profitability as indicated by a low ROE, a decline in promoter shareholding, and sustained underperformance relative to market benchmarks. Although recent quarterly profits have improved, these have not yet reversed the overall negative trend in the stock price.

Additionally, the stock’s position below all major moving averages suggests continued downward pressure in the near term, while the broader market’s relative strength highlights the stock’s divergence from general market trends.

Conclusion

Viji Finance Ltd’s stock reaching a 52-week low of Rs.1.97 marks a significant milestone in its recent price trajectory. The combination of subdued fundamental metrics, reduced promoter confidence, and persistent underperformance against sector and market indices has contributed to this decline. While the company has reported some positive quarterly financial results, these have yet to translate into a sustained improvement in market valuation or investor sentiment.

Investors and market participants will continue to monitor the company’s financial disclosures and sector developments to assess any changes in its performance dynamics.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today