Stock Price Movement and Market Context
On 20 Jan 2026, Credo Brands Marketing Ltd's stock price touched an intraday low of Rs.89.55, representing a 2.77% decline on the day and a 2.66% drop compared to the previous close. This new low also marks the stock’s all-time lowest price level. The stock has been on a downward trajectory for the past two consecutive sessions, cumulatively losing 4.2% in returns during this period. Notably, the stock underperformed its sector by 0.48% on the same day.
The broader market environment has been challenging, with the Sensex opening flat but eventually declining by 280.92 points, or 0.38%, to close at 82,926.46. The Sensex remains 3.9% below its 52-week high of 86,159.02 and has experienced a three-week consecutive fall, losing 3.31% over that span. While the Sensex trades below its 50-day moving average, the 50DMA itself remains above the 200DMA, indicating mixed technical signals.
Technical Indicators and Moving Averages
Credo Brands Marketing Ltd is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad weakness across short, medium, and long-term technical indicators reflects sustained selling pressure and a lack of upward momentum. The stock’s 52-week high stands at Rs.186.25, highlighting the extent of the decline over the past year.
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Long-Term Performance and Financial Metrics
Over the past year, Credo Brands Marketing Ltd has delivered a total return of -44.13%, significantly underperforming the Sensex, which posted a positive return of 7.59% during the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating persistent underperformance relative to broader market benchmarks.
Financially, the company’s operating profit has declined at an annualised rate of -7.83% over the last five years, signalling subdued growth in core earnings. The latest six-month period saw the company’s profit after tax (PAT) fall by 30.53% to Rs.25.17 crores, reflecting challenges in maintaining profitability in the near term. Additionally, profits have decreased by 2.6% over the past year, further underscoring the subdued earnings environment.
Valuation and Efficiency Indicators
Despite the recent price weakness, Credo Brands Marketing Ltd exhibits some positive financial attributes. The company maintains a high return on capital employed (ROCE) of 17.54%, indicating efficient utilisation of capital resources. Its debt servicing capability is strong, with a low Debt to EBITDA ratio of 1.31 times, suggesting manageable leverage levels.
The stock’s valuation metrics also appear attractive relative to peers. With a ROCE of 18.5 and an enterprise value to capital employed ratio of 1.3, the company is trading at a discount compared to the average historical valuations of its sector counterparts. The current dividend yield stands at a healthy 3.22%, providing some income support at the prevailing price level.
Shareholding and Market Capitalisation
Credo Brands Marketing Ltd is primarily promoter-owned, with majority shareholders being the promoters. The company holds a Market Cap Grade of 4, reflecting its micro-cap status within the Garments & Apparels sector. The Mojo Score assigned to the stock is 45.0, with a Mojo Grade of Sell, downgraded from Hold as of 29 Oct 2025, signalling a cautious stance based on fundamental and technical factors.
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Summary of Key Concerns
The stock’s decline to Rs.89.55 reflects a combination of factors including sustained negative returns over the past year, underwhelming profit growth, and technical weakness across all major moving averages. The company’s operating profit contraction and significant PAT decline in recent periods have contributed to the subdued market sentiment. Furthermore, the stock’s performance relative to sector peers and broader indices has been disappointing, with consistent underperformance over multiple time frames.
While valuation metrics and capital efficiency remain relatively favourable, these have not been sufficient to offset the downward pressure on the stock price. The current market environment, characterised by a weakening Sensex and sector headwinds, has also played a role in the stock’s recent performance.
Conclusion
Credo Brands Marketing Ltd’s fall to a 52-week low of Rs.89.55 marks a notable milestone in its recent price trajectory. The stock’s performance reflects a complex interplay of financial results, valuation considerations, and broader market dynamics. Investors and market participants will continue to monitor the company’s financial disclosures and market developments closely as the stock navigates this challenging phase.
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