Celebrity Fashions Stock Falls to 52-Week Low of Rs.9.31

Stock Price Movement and Market Context

On 1 December 2025, Celebrity Fashions’ share price touched Rs.9.31, the lowest point in the last 52 weeks. This decline comes despite the stock outperforming its sector by 2.51% on the day. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.

In contrast, the broader market has shown resilience. The Sensex opened higher at 86,065.92 points, gaining 359.25 points (0.42%) before trading slightly lower at 85,847.86 points (0.16%). The Sensex remains close to its 52-week high of 86,055.86, supported by bullish moving averages with the 50-day moving average positioned above the 200-day moving average. The index has recorded gains of 1.52% over the past three weeks, with small-cap stocks leading the market, as evidenced by the BSE Small Cap index rising 0.35% on the same day.

Financial Performance Over the Past Year

Celebrity Fashions’ one-year stock performance shows a decline of 38.01%, a stark contrast to the Sensex’s 7.60% rise over the same period. The stock’s 52-week high was Rs.18.46, highlighting the extent of the fall to the current low.

The company’s net sales for the nine months ending recently stood at Rs.134.70 crores, reflecting a contraction of 20.79% compared to the previous period. Operating cash flow for the year was recorded at Rs.3.07 crores, the lowest level in recent years. Meanwhile, interest expenses for the nine-month period increased by 28.72%, reaching Rs.4.84 crores, adding to the financial strain.

Long-Term Financial Trends and Capital Structure

Over the last five years, Celebrity Fashions’ net sales have shown a negative compound annual growth rate of approximately 3.86%. Operating profit has reflected a more pronounced decline, with an average annual rate of -238.89%, indicating persistent pressure on earnings before interest and taxes.

The company’s capital structure reveals a high leverage position, with an average debt-to-equity ratio of 5.27 times. This elevated level of debt relative to equity increases financial risk and interest obligations. Return on capital employed (ROCE) averaged 8.30%, suggesting modest profitability relative to the total capital invested, including both equity and debt.

Additionally, the company has reported negative results for nine consecutive quarters, underscoring ongoing difficulties in generating positive earnings.

Stock Valuation and Risk Factors

Celebrity Fashions’ stock is considered risky relative to its historical valuation levels. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, which adds to concerns about cash generation and operational sustainability. The stock’s return over the past year of -38.01% is accompanied by a 21.4% decline in profits, reflecting a challenging environment for the company.

Promoter shareholding includes a significant proportion of pledged shares, with 77.75% of promoter shares under pledge. This factor can exert additional downward pressure on the stock price, particularly in volatile or falling markets.

Over the last three years, Celebrity Fashions has consistently underperformed the BSE500 benchmark index, with negative returns in each annual period, highlighting a trend of relative weakness compared to the broader market.

Summary of Current Position

Celebrity Fashions’ stock price at Rs.9.31 represents a significant low point within the last year, reflecting a combination of subdued sales growth, elevated debt levels, and ongoing negative earnings. While the broader market and sector indices have shown positive trends, the company’s financial metrics indicate continued challenges in reversing the downward trend.

The company’s high promoter share pledge and negative EBITDA contribute to the stock’s risk profile. The consistent underperformance relative to benchmark indices over multiple years further illustrates the difficulties faced by Celebrity Fashions in regaining market confidence.

Investors and market participants will continue to monitor the company’s financial disclosures and market developments closely as the stock remains at a critical valuation level.

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