Stock Price Movement and Market Context
On 30 Dec 2025, Bhandari Hosiery Exports Ltd’s share price declined by 1.52%, closing at Rs.3.85, the lowest level recorded in the past year. This new low comes after two consecutive days of losses, during which the stock has fallen by 2.27%. The stock’s performance today notably underperformed the Garments & Apparels sector by 1.11%, signalling relative weakness within its industry group.
The broader market environment was also subdued, with the Sensex opening 94.55 points lower and trading at 84,546.55, down 0.18%. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 1.91% away, indicating that the market’s overall sentiment is more resilient than the stock’s recent performance suggests.
Bhandari Hosiery’s share price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning highlights sustained downward momentum and a lack of short-term support levels.
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Long-Term Performance and Financial Metrics
Over the past year, Bhandari Hosiery Exports Ltd has delivered a negative return of 43.97%, significantly underperforming the Sensex, which posted a positive return of 8.04% over the same period. The stock’s 52-week high was Rs.7.38, indicating a decline of nearly 48% from that peak.
The company’s long-term financial indicators reveal several areas of concern. Its average Return on Capital Employed (ROCE) stands at 8.75%, which is modest and reflects limited efficiency in generating profits from capital investments. Net sales have grown at an annual rate of just 3.45% over the last five years, while operating profit has increased at a slightly higher rate of 10.90%. These growth rates suggest subdued expansion relative to industry peers.
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. This financial structure may limit the company’s flexibility in managing its obligations and investing in growth initiatives.
Recent quarterly results for September 2025 were flat, showing no significant improvement in revenue or profitability, which adds to the cautious outlook on near-term performance.
Valuation and Comparative Analysis
Despite the weak price performance, Bhandari Hosiery Exports Ltd exhibits a very attractive valuation on certain metrics. The company’s ROCE of 8.2% pairs with an Enterprise Value to Capital Employed ratio of 0.8, suggesting the stock is trading at a discount relative to the capital employed in the business.
Additionally, the stock’s Price/Earnings to Growth (PEG) ratio stands at 0.4, which is low and typically indicative of undervaluation when compared to peers. Over the past year, while the stock price declined by 43.97%, the company’s profits rose by 28.4%, highlighting a disconnect between earnings growth and market valuation.
Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics.
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Mojo Score and Ratings
Bhandari Hosiery Exports Ltd currently holds a Mojo Score of 26.0, which corresponds to a Mojo Grade of Strong Sell. This rating was upgraded from Sell on 19 May 2025, reflecting a deterioration in the company’s overall quality and outlook as assessed by MarketsMOJO’s proprietary scoring system.
The Market Cap Grade is 4, indicating a relatively small market capitalisation within its sector. The stock’s consistent underperformance against the BSE500 index over the last three years, one year, and three months further underscores its subdued market standing.
Summary of Key Concerns
The stock’s fall to a 52-week low is underpinned by a combination of weak long-term growth, modest returns on capital, high leverage, and flat recent results. Its technical indicators remain bearish, with the share price below all major moving averages and continuing to lose ground over recent sessions.
While valuation metrics suggest the stock is trading at a discount relative to capital employed and earnings growth, these factors have not translated into price support amid broader market pressures and company-specific challenges.
In contrast, the Sensex has maintained a relatively stable position near its 52-week high, highlighting the stock’s divergence from broader market trends.
Conclusion
Bhandari Hosiery Exports Ltd’s stock reaching Rs.3.85 marks a significant low point in its recent trading history. The combination of financial metrics, market performance, and technical indicators paints a picture of a company facing multiple headwinds. The stock’s valuation remains attractive on certain measures, but the prevailing market sentiment and fundamental factors have contributed to its current price level.
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