Stock Price Movement and Market Context
On 4 December 2025, Bhandari Hosiery Exports recorded a fresh 52-week low at Rs.3.91. Despite this, the stock outperformed its sector by 0.74% on the day, showing a modest gain after 11 consecutive days of decline. However, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend over multiple time frames.
In contrast, the broader market displayed resilience. The Sensex, after opening 119.25 points lower, rebounded by 310.76 points to trade at 85,298.32, a 0.23% gain. The index is currently 1.01% shy of its 52-week high of 86,159.02 and is supported by bullish moving averages, with the 50-day moving average positioned above the 200-day moving average. Mid-cap stocks led the market rally, with the BSE Mid Cap index gaining 0.24% on the day.
Long-Term Performance and Valuation Metrics
Over the past year, Bhandari Hosiery Exports has experienced a decline of 47.61%, contrasting with the Sensex’s positive 5.36% return over the same period. The stock’s 52-week high was Rs.8.52, highlighting the extent of the recent price contraction.
Examining the company’s financial fundamentals reveals several factors contributing to the current valuation. The average Return on Capital Employed (ROCE) stands at 8.75%, reflecting modest capital efficiency. Net sales have grown at an annual rate of 3.45% over the last five years, while operating profit has shown a growth rate of 10.90% during the same period. These figures suggest limited expansion in revenue and profitability over the medium term.
Debt servicing capacity appears constrained, with a Debt to EBITDA ratio of 4.37 times, indicating a relatively high leverage position. This level of indebtedness may weigh on the company’s financial flexibility.
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Recent Financial Results and Profitability Trends
The company’s results for the quarter ended September 2025 were largely flat, reflecting limited near-term momentum. Over the last year, while the stock price has declined by approximately 48.36%, reported profits have risen by 28.4%. This divergence between earnings growth and share price performance suggests valuation pressures not fully explained by earnings alone.
The Price/Earnings to Growth (PEG) ratio stands at 0.4, indicating a valuation that may be considered attractive relative to earnings growth. Additionally, the Enterprise Value to Capital Employed ratio is 0.8, which is below typical peer averages, signalling a discounted valuation in the context of the company’s capital base.
Shareholding and Market Position
Majority shareholding in Bhandari Hosiery Exports is held by non-institutional investors, which may influence trading patterns and liquidity. The company operates within the garments and apparels sector, a segment that has seen varied performance across different market capitalisations.
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Summary of Key Financial Indicators
Bhandari Hosiery Exports’ financial profile over the last five years shows modest growth in sales and operating profit, with net sales increasing at 3.45% annually and operating profit at 10.90%. The company’s ROCE of 8.75% reflects moderate returns on invested capital, while the Debt to EBITDA ratio of 4.37 times points to a leveraged balance sheet.
Despite the recent share price decline to Rs.3.91, the company’s valuation metrics such as the Enterprise Value to Capital Employed ratio of 0.8 and PEG ratio of 0.4 suggest a valuation below historical peer averages. Profit growth of 28.4% over the past year contrasts with the stock’s negative price performance, indicating a complex valuation environment.
In the context of the broader market, where the Sensex is trading near its 52-week high and mid-cap stocks are leading gains, Bhandari Hosiery Exports remains an outlier with its share price at a multi-year low.
Market and Sector Comparison
The garments and apparels sector has experienced mixed performance, with some companies benefiting from market tailwinds while others face valuation pressures. Bhandari Hosiery Exports’ share price decline of nearly 48% over the past year contrasts with the Sensex’s positive return of 5.36%, underscoring the stock’s relative underperformance.
Trading below all major moving averages further highlights the stock’s subdued momentum compared to broader market indices, which are supported by bullish technical indicators.
Conclusion
Bhandari Hosiery Exports’ stock reaching a 52-week low of Rs.3.91 reflects a combination of modest long-term growth, elevated leverage, and valuation pressures despite recent profit growth. The company’s financial metrics and market positioning provide a detailed picture of its current standing within the garments and apparels sector amid a generally positive market environment.
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