Stock Performance and Market Context
The shares of Bhandari Hosiery Exports Ltd have been on a consistent downward trajectory, falling for nine consecutive trading sessions and delivering a cumulative loss of 30.15% during this period. Today’s closing price of Rs.2.81 represents the lowest level the stock has seen in the past year, down sharply from its 52-week high of Rs.6.66.
This decline contrasts starkly with the broader market, where the Sensex, despite a negative day, remains relatively resilient. The Sensex closed at 81,770.44, down 0.58% or 450.04 points, after opening flat. Notably, the S&P Bse Oil & Gas index hit a new 52-week high today, highlighting sectoral divergences within the market.
In terms of moving averages, Bhandari Hosiery is trading below all key averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained bearish momentum. The Sensex itself is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating a mixed technical backdrop for the broader market.
Financial Metrics and Long-Term Trends
Over the past year, Bhandari Hosiery Exports Ltd has delivered a negative return of 46.34%, significantly underperforming the Sensex’s positive 9.56% return. The company’s long-term financial indicators reveal several areas of concern. Its average Return on Capital Employed (ROCE) stands at 8.75%, reflecting weak capital efficiency relative to industry standards.
Growth metrics also remain subdued. Net sales have increased at an annualised rate of just 3.28% over the last five years, while operating profit has grown at 14.30% annually. These figures suggest limited expansion and profitability improvement over the medium term.
Debt servicing capacity is another challenge, with a high Debt to EBITDA ratio of 4.37 times, indicating elevated leverage and potential strain on cash flows. The company’s quarterly results for December 2025 further underscore these pressures, with net sales at a low Rs.59.05 crore and interest expenses reaching a peak of Rs.2.91 crore.
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Recent Ratings and Market Sentiment
Reflecting these financial challenges, the company’s Mojo Score currently stands at 26.0, with a Mojo Grade of Strong Sell as of 24 February 2026, an upgrade from the previous Sell rating. This grading indicates a cautious stance based on fundamental and technical assessments.
The market cap grade is rated 4, suggesting a relatively small market capitalisation compared to larger peers. The stock’s day change today was a decline of 3.70%, underperforming its sector by 3.39%, further emphasising the negative momentum.
Over the last three years, Bhandari Hosiery has consistently underperformed the BSE500 index, reinforcing a pattern of below-par returns and limited investor confidence in its growth trajectory.
Valuation and Peer Comparison
Despite the challenges, the stock’s valuation metrics present a contrasting picture. The company’s ROCE of 8.2% is accompanied by a very attractive Enterprise Value to Capital Employed ratio of 0.9, indicating that the stock is trading at a discount relative to its capital base.
This valuation is lower than the average historical valuations of its peers in the Garments & Apparels sector, suggesting that the market has priced in much of the company’s risk. Additionally, while the stock’s price has declined sharply, its profits have risen by 26.2% over the past year, highlighting some operational resilience despite the broader headwinds.
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Shareholding and Sectoral Position
The majority of Bhandari Hosiery Exports Ltd’s shares are held by non-institutional investors, which may contribute to lower liquidity and higher volatility in the stock price. The company operates within the Garments & Apparels industry, a sector that has seen mixed performance amid changing consumer trends and global supply chain dynamics.
While the sector itself has pockets of strength, Bhandari Hosiery’s relative underperformance highlights company-specific factors influencing its valuation and market sentiment.
Summary of Key Financial and Market Indicators
To summarise, Bhandari Hosiery Exports Ltd’s stock has reached a 52-week low of Rs.2.81 after a sustained period of decline. The company’s financial profile is characterised by modest sales growth, constrained profitability, and elevated leverage. Despite some improvement in profits over the past year, the stock’s valuation reflects significant caution from the market.
Technical indicators confirm the bearish trend, with the stock trading below all major moving averages and underperforming both its sector and the broader market indices. The recent upgrade to a Strong Sell rating by MarketsMOJO further underscores the challenges faced by the company in the current environment.
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