Key Events This Week
2 Feb: New 52-week low of Rs.108.45 amid weak financials
3 Feb: Strong gap up and intraday high at Rs.121, reversing prior losses
4 Feb: Continued gains with 6.03% rise, outperforming Sensex
5-6 Feb: Profit-taking led to declines, closing week at Rs.119.75
2 February: Bombay Dyeing Hits 52-Week Low Amid Financial Pressures
On 2 February 2026, Bombay Dyeing’s stock price declined sharply, touching a 52-week low intraday of Rs.108.45. The stock closed at Rs.112.10, down 2.78% for the day, underperforming the Sensex which fell 1.03%. This drop reflected ongoing financial challenges, including a quarterly net sales decline of 5.3% and a steep 77.3% fall in profit after tax compared to prior averages. The stock’s position below all key moving averages underscored sustained bearish momentum. Despite the broader market’s mixed signals, Bombay Dyeing’s share price faced significant downward pressure, highlighting investor concerns about its liquidity and debt servicing capacity.
3 February: Sharp Gap Up and Intraday High Signal Short-Term Rebound
Following the prior day’s lows, Bombay Dyeing opened with a strong gap up of 6.69%, surging to an intraday high of Rs.121, a 7.94% increase from the previous close. The stock closed at Rs.119.35, up 6.47%, outperforming both the Sensex, which gained 2.63%, and the Garments & Apparels sector’s 4.49% rise. This rebound was driven by renewed buying interest and short-term technical strength, with the stock trading above its 5-day moving average for the first time in weeks. However, it remained below longer-term averages, indicating the recovery was within a broader downtrend. The stock’s high beta of 1.65 contributed to the pronounced volatility observed during the session.
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4 February: Continued Gains Amid Sector Strength
Bombay Dyeing extended its recovery on 4 February, closing at Rs.126.55, a 6.03% gain on the day. This marked the week’s highest closing price, reflecting sustained buying momentum. The Sensex also rose modestly by 0.37%, but Bombay Dyeing’s outperformance highlighted its short-term strength within the Garments & Apparels sector. Despite this, the stock remained below key medium and long-term moving averages, signalling that the rally was still vulnerable to reversal. Volume surged to 1,28,860 shares, indicating increased investor interest during the rebound phase.
5-6 February: Profit-Taking and Consolidation Weigh on Price
Profit-taking emerged on 5 February, with the stock retreating 4.11% to Rs.121.35 on moderate volume. The Sensex declined 0.53% on the day, reflecting broader market caution. On 6 February, Bombay Dyeing further eased by 1.32% to close at Rs.119.75, while the Sensex inched up 0.10%. These declines capped the week’s gains but did not erase the overall positive weekly performance. The stock’s trading below the 20-day and longer moving averages continued to suggest that medium-term technical challenges remain unresolved.
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Daily Price Performance: Bombay Dyeing vs Sensex
| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.112.10 | -2.78% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.119.35 | +6.47% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.126.55 | +6.03% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.121.35 | -4.11% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.119.75 | -1.32% | 36,730.20 | +0.10% |
Key Takeaways from the Week
Positive Signals: Bombay Dyeing staged a strong recovery midweek, with a 6.47% gain on 3 February and a further 6.03% rise on 4 February, outperforming the Sensex and its sector peers. The sharp gap up and intraday highs indicate renewed buying interest and short-term technical strength. The stock’s weekly gain of 3.86% exceeded the Sensex’s 1.51%, signalling relative outperformance despite recent challenges.
Cautionary Signals: The stock remains below key medium and long-term moving averages, reflecting ongoing technical resistance. The Mojo Grade remains a Strong Sell with a Mojo Score of 3.0, highlighting fundamental weaknesses including negative EBIT to interest coverage and subdued quarterly profits. The high beta of 1.65 suggests elevated volatility, which may amplify price swings in either direction. Profit-taking in the last two trading sessions capped gains and suggests investor caution.
Conclusion
Bombay Dyeing & Manufacturing Company Ltd’s week was marked by a significant rebound from a 52-week low, driven by strong intraday rallies and a notable gap up on 3 February. While the stock outperformed the Sensex and its sector during the midweek rally, it faced resistance and profit-taking towards the week’s close. The company’s fundamental challenges and bearish technical indicators temper the optimism from the short-term price recovery. Investors should note the stock’s elevated volatility and the persistence of longer-term downtrend signals despite the recent gains. The week’s price action reflects a tentative shift in momentum but underscores the complexity of Bombay Dyeing’s current market positioning.
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