Recent Price Movement and Market Context
The stock has been on a downward trajectory for six consecutive trading sessions, shedding approximately 14.71% over this period. Today’s fall of 12.78% notably underperformed the Garments & Apparels sector by 11.05%. Bhandari Hosiery is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum.
In contrast, the broader market benchmark, the Sensex, experienced a sharp decline, falling 648.58 points or 1.07% to close at 82,403.96. Despite this, the Sensex remains within 4.56% of its 52-week high of 86,159.02, reflecting relative resilience compared to Bhandari Hosiery’s performance.
Long-Term Performance and Valuation Metrics
Over the past year, Bhandari Hosiery Exports Ltd has delivered a negative return of 37.41%, significantly lagging behind the Sensex’s positive 10.64% gain. The stock’s 52-week high was Rs.6.66, underscoring the steep decline to the current low.
The company’s long-term fundamentals reveal modest growth, with net sales increasing at an annualised rate of 3.28% and operating profit rising by 14.30% over the last five years. However, the average Return on Capital Employed (ROCE) remains subdued at 8.75%, indicating limited efficiency in generating returns from capital investments.
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Financial Health and Debt Servicing
Bhandari Hosiery’s ability to service debt remains a concern, with a high Debt to EBITDA ratio of 4.37 times. This elevated leverage ratio suggests increased financial risk and potential strain on cash flows. The company’s interest expenses have also risen, with the latest quarterly interest cost reaching Rs.2.91 crore, the highest recorded in recent periods.
Net sales for the quarter stood at Rs.59.05 crore, marking the lowest quarterly sales figure in recent times. This flat revenue performance, combined with rising interest costs, has contributed to the subdued near-term financial results.
Comparative Performance and Market Position
In addition to underperforming the Sensex, Bhandari Hosiery has lagged behind the broader BSE500 index over the last three years, one year, and three months. This consistent underperformance highlights challenges in maintaining competitive positioning within the Garments & Apparels sector.
Despite these challenges, the stock’s valuation metrics present a contrasting picture. The company’s ROCE of 8.2 and an Enterprise Value to Capital Employed ratio of 0.8 indicate a very attractive valuation relative to its capital base. Furthermore, the stock trades at a discount compared to the average historical valuations of its peers in the sector.
Profitability has shown some improvement, with profits rising by 26.2% over the past year. The Price/Earnings to Growth (PEG) ratio stands at 0.4, suggesting that the stock’s price decline may have outpaced earnings growth.
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Shareholding and Market Capitalisation
The majority of Bhandari Hosiery’s shares are held by non-institutional investors, reflecting a shareholder base dominated by retail or private investors. The company’s Market Cap Grade is rated 4, indicating a mid-tier market capitalisation within its sector.
Its Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, upgraded from a previous Strong Sell rating on 1 Feb 2026. This change reflects a slight improvement in the company’s overall assessment, though the rating remains on the cautious side.
Summary of Key Metrics
To summarise, Bhandari Hosiery Exports Ltd’s stock has reached a fresh 52-week low of Rs.3.44 amid a six-day losing streak and underperformance relative to its sector and broader market indices. The company’s financial profile reveals modest growth, elevated debt levels, and flat recent sales, while valuation metrics suggest the stock is trading at a discount compared to peers.
Market conditions have been challenging, with the Sensex also experiencing declines, though it remains near its 52-week high. Bhandari Hosiery’s long-term returns and relative performance have been weak, contributing to the current price levels.
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