On 19 Nov 2025, Axita Cotton's share price touched Rs.8, marking its lowest level in the past year. This movement occurred despite the Sensex advancing by 0.41% to close at 85,019.56, nearing its own 52-week high of 85,290.06. The broader market's positive momentum was supported by mega-cap stocks and bullish moving averages, with the Sensex trading above its 50-day and 200-day moving averages. In contrast, Axita Cotton's price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day, indicating sustained downward pressure on the stock.
Over the last year, Axita Cotton's stock has recorded a return of -37.96%, significantly underperforming the Sensex, which posted a 9.62% gain over the same period. The stock's 52-week high was Rs.13.82, underscoring the extent of the decline from its peak. This underperformance is consistent with the company's financial trajectory and sector dynamics.
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Financial data over the past five years reveals a negative trend in Axita Cotton's core metrics. Net sales have declined at an annual rate of -7.83%, while operating profit has shown a contraction of -174.55%. The company has reported negative results for six consecutive quarters, with the latest half-year figures indicating a PAT of Rs.1.65 crore, reflecting a reduction of -60.43% compared to prior periods.
Return on Capital Employed (ROCE) for the half-year stands at -1.75%, signalling challenges in generating returns from capital investments. Cash and cash equivalents are reported at Rs.0.62 crore, the lowest level recorded in recent periods. Additionally, the company is experiencing negative EBITDA, which contributes to the perception of elevated risk in its valuation compared to historical averages.
Axita Cotton's stock has consistently underperformed the BSE500 index over the last three years, reinforcing the trend of subdued returns relative to broader market benchmarks. The stock's performance over the past year, with a -37.96% return, aligns with this pattern of underperformance.
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Despite these challenges, Axita Cotton maintains a relatively low Debt to EBITDA ratio of 0.39 times, indicating a capacity to service debt obligations. This metric suggests that the company’s leverage is moderate in relation to its earnings before interest, taxes, depreciation, and amortisation.
Institutional investors have increased their stake by 1.09% over the previous quarter, collectively holding 3.73% of the company’s shares. This shift in shareholding reflects a change in participation by entities with greater analytical resources and fundamental assessment capabilities.
In summary, Axita Cotton's fall to a 52-week low of Rs.8 is underpinned by a combination of declining sales, reduced profitability, and sustained negative earnings trends. The stock's performance contrasts with the broader market's upward movement, highlighting sector-specific and company-specific factors influencing its valuation. While the company shows some strength in debt servicing and institutional participation, the prevailing financial indicators reflect ongoing pressures within the Garments & Apparels sector.
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