On the trading day marking this new low, Axita Cotton's share price moved in line with its sector peers, registering a day change of -0.37%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum over multiple time frames.
In contrast, the broader market has shown resilience. The Sensex opened flat with a minor decline of 29.24 points but subsequently climbed 375.78 points to close at 85,019.56, a gain of 0.41%. The benchmark index remains close to its 52-week high of 85,290.06, trading above its 50-day and 200-day moving averages, supported by strong performances from mega-cap stocks.
Over the past year, Axita Cotton's stock has recorded a return of -37.96%, significantly underperforming the Sensex, which has delivered a positive return of 9.62% during the same period. The stock's 52-week high was Rs.13.82, indicating a substantial decline from its peak.
From struggle to strength! This Small Cap from Textile - Machinery is showing early turnaround signals that look promising. Position yourself now for explosive growth potential ahead!
- Early turnaround signals
- Explosive growth potential
- Textile - Machinery recovery play
Position for Explosive Growth →
Financially, Axita Cotton's long-term growth indicators present a challenging picture. Net sales have shown a negative compound annual growth rate of -7.83% over the last five years, while operating profit has declined at an annualised rate of -174.55% during the same period. The company has reported negative results for six consecutive quarters, underscoring persistent earnings pressure.
Profit after tax (PAT) for the latest six-month period stands at Rs.1.65 crore, reflecting a contraction of -60.43%. Return on capital employed (ROCE) for the half-year is at a low of -1.75%, indicating limited efficiency in generating returns from capital invested. Cash and cash equivalents are reported at Rs.0.62 crore, marking a low liquidity position.
Axita Cotton's earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, contributing to the stock's classification as risky relative to its historical valuation averages. Over the past year, profits have fallen by -117.4%, further emphasising the financial strain.
The stock has consistently underperformed the BSE500 index over the last three annual periods, in addition to its one-year underperformance against the Sensex. This trend highlights the company's challenges in keeping pace with broader market and sector benchmarks.
Axita Cotton or something better? Our SwitchER feature analyzes this micro-cap Garments & Apparels stock and recommends superior alternatives based on fundamentals, momentum, and value!
- SwitchER analysis complete
- Superior alternatives found
- Multi-parameter evaluation
Despite these challenges, Axita Cotton maintains a relatively low debt burden, with a Debt to EBITDA ratio of 0.39 times, suggesting a manageable level of leverage in relation to its earnings before interest, taxes, depreciation, and amortisation. This metric indicates the company’s capacity to service its debt obligations remains intact.
Institutional investors have increased their stake in Axita Cotton by 1.09% over the previous quarter, collectively holding 3.73% of the company’s shares. This participation reflects a degree of confidence from investors with greater resources and analytical capabilities, although it remains a modest proportion of total shareholding.
In summary, Axita Cotton’s fall to a 52-week low of Rs.8 is a reflection of its ongoing financial challenges and underperformance relative to market benchmarks. The stock’s position below all major moving averages and its negative earnings trends underscore the difficulties faced by the company within the Garments & Apparels sector.
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 →
