Celebrity Fashions Ltd Stock Falls to 52-Week Low of Rs.7.06

Stock Performance and Market Context

On 23 Jan 2026, Celebrity Fashions Ltd’s share price declined by 5.57% on the day, underperforming the Garments & Apparels sector by 4.56%. This drop extended a two-day losing streak, during which the stock has fallen by 6.18%. The current price of Rs.7.06 is substantially lower than its 52-week high of Rs.15.50, representing a decline of approximately 54.5% over the past year.

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. This technical weakness is compounded by the broader market environment, where the Sensex itself fell by 0.94% to 81,534.20 after a flat opening, with the index trading below its 50-day moving average.

Over the last year, Celebrity Fashions Ltd has delivered a negative return of 49.27%, starkly contrasting with the Sensex’s positive 6.49% gain over the same period. The stock has also consistently underperformed the BSE500 index across the last three annual periods, highlighting ongoing relative weakness.

Financial Performance and Fundamental Concerns

Celebrity Fashions Ltd’s financial indicators reveal a challenging environment. The company has reported negative results for nine consecutive quarters, with net sales for the nine-month period standing at Rs.134.70 crores, reflecting a decline of 20.79% year-on-year. Operating cash flow for the year is at a low Rs.3.07 crores, underscoring limited liquidity generation.

Interest expenses have increased by 28.72% to Rs.4.84 crores over the same period, adding pressure on profitability. The company’s average debt-to-equity ratio is notably high at 5.27 times, indicating a leveraged capital structure that may constrain financial flexibility.

Return on Capital Employed (ROCE) averages at 8.30%, signalling modest profitability relative to the capital invested. Operating profit has deteriorated sharply over the past five years, with a negative growth rate of 238.89%, while net sales have declined at an annual rate of 3.86%. These trends contribute to the company’s current Mojo Grade of Strong Sell, upgraded from Sell on 1 Aug 2024, reflecting a weak long-term fundamental strength.

Valuation and Risk Factors

The stock’s valuation appears risky compared to its historical averages, with negative EBITDA and a downward trajectory in profits, which have fallen by 21.4% over the past year. The high proportion of promoter share pledging, at 77.75%, adds an additional layer of risk, as falling markets may exert further downward pressure on the stock price.

These factors, combined with the company’s consistent underperformance relative to benchmarks and sector peers, have contributed to a cautious market stance. The stock’s current market capitalisation grade stands at 4, indicating a relatively small market cap within its sector.

Sector and Industry Positioning

Operating within the Garments & Apparels industry, Celebrity Fashions Ltd faces a competitive landscape where growth and profitability are critical. The sector itself has seen mixed performance, with some indices such as NIFTY REALTY also hitting 52-week lows on the same day, reflecting broader market volatility.

The company’s sustained decline contrasts with the sector’s overall dynamics, where other players have managed to maintain or improve their positions. Celebrity Fashions Ltd’s current trajectory highlights the challenges it faces in regaining momentum within this competitive environment.

Summary of Key Metrics

To encapsulate, the stock’s 52-week low of Rs.7.06 is a reflection of multiple factors including:

• Negative returns of -49.27% over the past year versus Sensex’s 6.49% gain
• Declining net sales and operating profit over five years
• High debt levels with a debt-to-equity ratio of 5.27 times
• Negative EBITDA and increasing interest costs
• Promoter share pledging at 77.75%
• Trading below all major moving averages

These elements collectively underpin the stock’s current valuation and market sentiment.

Conclusion

Celebrity Fashions Ltd’s fall to a 52-week low of Rs.7.06 marks a significant milestone in its recent market performance. The stock’s decline is underpinned by weak financial results, high leverage, and persistent negative returns. While the broader market and sector conditions have also been challenging, the company’s specific financial metrics and valuation risks have contributed to its current standing.

Investors and market participants will continue to monitor the stock’s performance in relation to these fundamental factors and the evolving market environment.

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