Stock Price Movement and Market Context
On 18 Dec 2025, Celebrity Fashions’ share price touched Rs.8.1, representing its lowest level in the past year. This decline occurred despite a generally positive market environment, with the Sensex trading at 84,681.39 points, up 0.14% for the day and nearing its 52-week high of 86,159.02. The BSE Mid Cap index also showed gains of 0.15%, indicating that the broader market and mid-cap stocks were experiencing upward momentum while Celebrity Fashions lagged behind.
The stock underperformed its sector by 1.73% on the day, and it 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 suggests a sustained downward trend over multiple time frames.
Financial Performance Over the Past Year
Celebrity Fashions’ one-year stock return stands at -50.65%, a stark contrast to the Sensex’s 5.61% gain over the same period. The stock’s 52-week high was Rs.18.46, highlighting the extent of the decline. This performance is reflective of the company’s financial results, which have shown contraction in key metrics.
Net sales for the nine-month period were recorded at Rs.134.70 crores, showing a decline of 20.79% compared to previous periods. Operating cash flow for the year reached a low of Rs.3.07 crores, indicating limited cash generation capacity. Meanwhile, interest expenses for the nine months increased by 28.72%, reaching Rs.4.84 crores, adding to the financial burden.
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Long-Term Growth and Profitability Trends
Over the last five years, Celebrity Fashions has experienced a negative compound annual growth rate in net sales of approximately 3.86%. Operating profit has shown a more pronounced decline, with a reduction of 238.89% over the same period. These figures indicate challenges in sustaining revenue growth and profitability within the garments and apparels sector.
The company’s average return on capital employed (ROCE) stands at 8.30%, reflecting modest profitability relative to the total capital invested, including both equity and debt. This level of return suggests limited efficiency in generating earnings from the capital base.
Debt and Financial Risk Profile
Celebrity Fashions carries a high debt burden, with an average debt-to-equity ratio of 5.27 times. This elevated leverage level increases financial risk, particularly in a context where interest expenses have risen. The company’s negative earnings before interest, taxes, depreciation and amortisation (EBITDA) further underline the financial strain.
Additionally, 77.75% of promoter shares are pledged, which can exert downward pressure on the stock price during market downturns or periods of volatility. This factor adds to the overall risk profile of the stock.
Recent Quarterly Results and Earnings Trends
Celebrity Fashions has reported negative results for nine consecutive quarters, highlighting ongoing difficulties in reversing its earnings trajectory. Profitability has contracted by 21.4% over the past year, reinforcing the challenges faced by the company in improving its financial health.
The consistent underperformance extends beyond the last year, with the stock lagging behind the BSE500 benchmark in each of the past three annual periods. This persistent trend reflects structural issues impacting the company’s market valuation and investor sentiment.
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Comparative Market Performance
While the Sensex has maintained a positive trajectory, trading above its 50-day moving average and with the 50-day average above the 200-day average, Celebrity Fashions has not mirrored this trend. The stock’s position below all major moving averages contrasts with the broader market’s bullish technical indicators.
The mid-cap segment, which includes many companies in the garments and apparels sector, has shown modest gains, yet Celebrity Fashions remains an outlier with its continued price decline and financial contraction.
Summary of Key Financial Metrics
To summarise, Celebrity Fashions’ recent financial and market data reveal:
- New 52-week low price of Rs.8.1
- One-year stock return of -50.65%
- Net sales for nine months at Rs.134.70 crores, down 20.79%
- Operating cash flow at Rs.3.07 crores for the year
- Interest expenses at Rs.4.84 crores for nine months, up 28.72%
- Average debt-to-equity ratio of 5.27 times
- Average ROCE of 8.30%
- Negative results for nine consecutive quarters
- Promoter share pledge at 77.75%
These figures collectively illustrate the challenges faced by Celebrity Fashions in maintaining financial stability and market valuation within the garments and apparels sector.
Conclusion
Celebrity Fashions’ stock reaching a 52-week low of Rs.8.1 reflects a continuation of its subdued performance amid a market environment that has otherwise shown resilience. The company’s financial indicators point to ongoing pressures from declining sales, rising interest costs, and high leverage. While the broader market and sector indices have demonstrated positive trends, Celebrity Fashions remains under pressure, as evidenced by its technical positioning and financial results.
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