Stock Performance and Market Context
7NR Retail Ltd’s stock has been under pressure for the past week, recording losses for seven consecutive trading sessions. Over this period, the stock has fallen by 12.28%, underperforming its sector by 4.83% on the day it hit the new low. The current price of Rs.3.38 is substantially below its 52-week high of Rs.8.33, reflecting a year-long decline of 25.21%. This contrasts sharply with the broader market, where the Sensex has delivered a positive return of 8.24% over the same timeframe.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. Meanwhile, the Sensex itself closed at 82,130.43, up 0.33% on the day, supported by gains in mega-cap stocks, and remains within 4.91% of its own 52-week high of 86,159.02.
Fundamental Assessment and Financial Metrics
7NR Retail Ltd’s financial fundamentals continue to reflect challenges. The company’s average Return on Equity (ROE) stands at a modest 1.81%, indicating limited profitability relative to shareholder equity. Additionally, the firm’s ability to service debt remains constrained, with an average EBIT to Interest ratio of -0.16, suggesting earnings before interest and tax are insufficient to cover interest expenses.
Despite these concerns, the company has reported positive results for the last three consecutive quarters. Net sales for the latest six-month period reached Rs.10.33 crore, representing a robust growth rate of 70.74%. Profit After Tax (PAT) for the same period was Rs.0.36 crore, marking a significant increase compared to prior periods.
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Valuation and Comparative Analysis
The company’s Return on Capital Employed (ROCE) is reported at 2, which, combined with an Enterprise Value to Capital Employed ratio of 0.4, suggests a valuation that is attractive relative to its capital base. This valuation is notably discounted when compared to the average historical valuations of its peers within the Garments & Apparels sector.
However, the stock’s performance over the past year has lagged behind the broader BSE500 index, which has generated returns of 9.07%. The divergence between rising profits—up by 198.9% over the last year—and declining share price highlights a disconnect that may be influenced by other market or company-specific factors.
Shareholding and Market Sentiment
Majority shareholding in 7NR Retail Ltd is held by non-institutional investors, which may contribute to the stock’s volatility and price movements. The company’s Mojo Score currently stands at 32.0, with a Mojo Grade of Sell, reflecting a downgrade from a previous Strong Sell rating as of 5 Jan 2026. The Market Capitalisation Grade is rated at 4, indicating a relatively modest market cap within its sector.
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Summary of Key Metrics
To summarise, 7NR Retail Ltd’s stock has reached a new 52-week low of Rs.3.38, reflecting a sustained downtrend over the past year and recent weeks. The stock’s underperformance contrasts with the broader market’s positive returns and the Sensex’s proximity to its own 52-week high. While the company has demonstrated growth in sales and profits recently, its overall financial strength remains subdued, with low returns on equity and limited debt servicing capacity.
The valuation metrics indicate the stock is trading at a discount relative to peers, yet this has not translated into price appreciation. The downgrade in Mojo Grade to Sell further underscores the cautious stance reflected in the stock’s current market valuation.
Market Environment
On the broader market front, the Sensex opened flat but gained momentum to close higher by 238.07 points, supported by mega-cap stocks. The index’s 50-day moving average remains above its 200-day moving average, signalling a generally positive medium-term trend for the market, which contrasts with the weaker technical positioning of 7NR Retail Ltd’s shares.
Conclusion
The recent decline to a 52-week low for 7NR Retail Ltd highlights the challenges faced by the stock amid a market environment that has otherwise been relatively buoyant. The company’s financial metrics and market performance data provide a comprehensive picture of its current standing within the Garments & Apparels sector.
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