Stock Price Movement and Market Context
On 5 December 2025, 7NR Retail's stock price touched Rs.3.75, representing its lowest level in the past year. This decline contrasts with the broader market trend, where the Sensex rebounded from an early loss of 139.84 points to close 506.81 points higher at 85,632.29, a gain of 0.43%. The Sensex remains within 0.62% of its 52-week high of 86,159.02 and is trading above its 50-day and 200-day moving averages, signalling a generally bullish market sentiment.
In comparison, 7NR Retail is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure on the stock price over multiple time frames.
Performance Relative to Market and Sector
Over the last year, 7NR Retail has recorded a negative return of 28.29%, significantly underperforming the Sensex, which has shown a positive return of 4.74% during the same period. The BSE500 index also posted a modest gain of 2.05% over the past year, further highlighting the stock's relative weakness within the broader market.
On the day of the new low, 7NR Retail's price movement was in line with the garments and apparels sector, which has experienced mixed performance amid varying industry dynamics.
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Financial Metrics and Company Fundamentals
7NR Retail's long-term financial indicators reflect certain constraints. The company’s average Return on Equity (ROE) stands at 1.81%, which is modest within the garments and apparels sector. Additionally, the average EBIT to interest ratio is negative at -0.16, indicating challenges in covering interest expenses from operating earnings.
Despite these factors, the company has reported positive results for the last three consecutive quarters. Net sales for the latest six-month period reached Rs.10.33 crores, showing a growth rate of 70.74%. Profit after tax (PAT) for the same period was Rs.0.36 crores, higher than previous comparable periods.
The Return on Capital Employed (ROCE) is recorded at 2%, and the enterprise value to capital employed ratio is 0.8, suggesting an attractive valuation relative to capital utilisation. The stock is trading at a discount compared to its peers’ average historical valuations, which may reflect market caution.
Shareholding and Promoter Activity
Promoter shareholding in 7NR Retail has declined by 0.92% over the previous quarter, with promoters currently holding 10.04% of the company’s equity. This reduction in promoter stake may be interpreted as a shift in confidence regarding the company’s near-term prospects.
Stock Valuation and Profitability Trends
While the stock price has declined by 28.29% over the past year, the company’s profits have risen by 198.9% during the same period. The Price/Earnings to Growth (PEG) ratio stands at 0.1, indicating that profit growth has outpaced the decline in stock price. The 52-week high price for 7NR Retail was Rs.8.33, more than double the current level.
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Summary of Key Considerations
7NR Retail’s stock has reached a significant low point at Rs.3.75, reflecting a combination of subdued long-term financial metrics and reduced promoter shareholding. The company’s recent sales and profit figures indicate some operational improvements, yet the stock remains below all major moving averages and has underperformed the broader market indices over the past year.
Meanwhile, the overall market environment remains positive, with the Sensex trading near its 52-week high and supported by strong performances from mega-cap stocks. This divergence highlights the challenges faced by 7NR Retail within its sector and the broader market context.
Technical and Valuation Insights
The stock’s position below its 5-day through 200-day moving averages suggests persistent downward momentum. However, valuation metrics such as the enterprise value to capital employed ratio and PEG ratio point to a discounted valuation relative to peers and historical averages. These factors may be relevant for market participants analysing the stock’s current standing.
Industry and Sector Overview
Operating within the garments and apparels sector, 7NR Retail faces competitive pressures and market dynamics that have influenced its stock performance. The sector itself has experienced mixed results, with some companies benefiting from market trends while others contend with pricing and demand fluctuations.
Conclusion
The decline of 7NR Retail’s stock to its 52-week low of Rs.3.75 marks a notable development amid a generally positive market backdrop. The company’s financial data reveals a complex picture of modest returns, improving sales and profits, and reduced promoter confidence. These elements collectively contribute to the stock’s current valuation and price behaviour.
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