Why is National Standar falling/rising?

Recent Price Movement and Market Performance

On 03 December, National Standar’s share price closed at ₹1,374.40, down by ₹35.15 or 2.49% from the previous close. This decline follows a two-day losing streak, during which the stock has dropped approximately 4.14%. Despite opening the day with a gap up of 2.73% and touching an intraday high of ₹1,449 (a 2.8% gain), the stock ultimately succumbed to selling pressure, hitting a low of ₹1,341, down 4.86% intraday. The weighted average price indicates that more volume was traded near the day’s low, signalling stronger selling interest as the session progressed.

Further technical indicators reveal that National Standar is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical weakness often signals a bearish trend and may discourage short-term traders and investors from entering or holding positions.

Investor participation has also diminished, with delivery volume on 02 December falling by 0.39% compared to the five-day average. Although liquidity remains adequate for sizeable trades, the declining volume suggests reduced enthusiasm among shareholders.

Long-Term Underperformance and Financial Weakness

National Standar’s stock has significantly underperformed the broader market over multiple time horizons. Over the past week, the stock declined by 4.99%, compared to a modest 0.59% fall in the Sensex. The one-month performance is even more stark, with the stock down 20.04% while the Sensex gained 1.34%. Year-to-date, the stock has plummeted 68.55%, in sharp contrast to the Sensex’s 8.92% rise. Over one, three, and five-year periods, the stock has consistently lagged the benchmark, with a three-year return of -69.35% versus the Sensex’s 35.37% and a five-year gain of 158.88% against the Sensex’s 90.68%. This persistent underperformance highlights structural challenges within the company and a lack of investor confidence.

Financially, National Standar exhibits several red flags. The company’s average Return on Equity (ROE) stands at a low 6.15%, indicating limited profitability relative to shareholders’ funds. Operating profit has contracted at an alarming annual rate of -225.15% over the last five years, signalling deteriorating core business performance. The latest nine-month Profit After Tax (PAT) figure of ₹8.85 crores reflects a decline of 24.10%, while non-operating income accounts for over 106% of Profit Before Tax, suggesting reliance on non-core activities to sustain profitability.

Moreover, the company is burdened by negative EBITDA, which increases the risk profile of the stock. Over the past year, profits have fallen by 33.7%, compounding the steep 68.40% decline in share price. Despite its size, domestic mutual funds hold no stake in National Standar, which may indicate a lack of confidence from institutional investors who typically conduct thorough due diligence.

Investor Sentiment and Outlook

The combination of weak financial metrics, negative earnings trends, and consistent underperformance against the benchmark has eroded investor confidence in National Standar. The stock’s inability to sustain gains despite occasional intraday rallies, coupled with declining volume and trading below all major moving averages, suggests that market participants remain cautious or bearish. The absence of institutional backing further compounds concerns about the company’s growth prospects and management effectiveness.

While the company maintains a low debt-to-equity ratio, which is a positive factor, this has not been sufficient to offset the negative sentiment driven by poor profitability and shrinking operating margins. The flat results reported in September 2025 and the reliance on non-operating income to bolster profits raise questions about the sustainability of earnings.

In summary, National Standar’s share price decline as of 03 December is primarily attributable to its deteriorating financial health, persistent underperformance relative to market benchmarks, and weakening investor participation. These factors collectively weigh heavily on the stock, making it a challenging proposition for investors seeking stable returns in the current market 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 →