Recent Price Movement and Market Context
On 25 Feb 2026, Credo Brands Marketing Ltd’s share price hit Rs.83.91, its lowest level in the past year and also an all-time low. The stock has underperformed its sector by 1.77% on the day, continuing a three-day losing streak that has resulted in a cumulative decline of 4.97%. This persistent slide has seen the stock trade below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a broad-based weakness in price momentum.
In contrast, the broader market has shown resilience. The Sensex opened 304.20 points higher and closed up by 271.50 points at 82,801.62, a 0.7% gain. The index remains within 4.05% of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. While the Sensex trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a generally positive medium-term trend for the benchmark.
Long-Term Performance and Valuation Metrics
Credo Brands Marketing Ltd’s one-year performance starkly contrasts with the Sensex’s 11.00% gain, as the stock has declined by 33.46% over the same period. The 52-week high for the stock was Rs.186.25, highlighting the extent of the recent price erosion. Over the last three years, the stock has consistently underperformed the BSE500 index, reflecting persistent challenges in generating shareholder returns.
From a valuation standpoint, the company currently offers a dividend yield of 3.49%, which is relatively attractive given the prevailing price levels. The enterprise value to capital employed ratio stands at 1.3, suggesting the stock is trading at a discount compared to its peers’ historical averages. This valuation discount is accompanied by a high return on capital employed (ROCE) of 17.54%, indicating efficient use of capital despite the stock’s price weakness.
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Financial Results and Profitability Trends
The company’s recent quarterly results have reflected a decline in profitability. Profit before tax (PBT) excluding other income for the quarter stood at Rs.7.99 crores, down 53.7% compared to the average of the previous four quarters. Similarly, profit after tax (PAT) for the quarter was Rs.8.03 crores, a 44.0% decrease relative to the prior four-quarter average. Operating profit to net sales ratio for the quarter was recorded at 22.93%, the lowest in recent periods, signalling margin pressures.
These figures highlight a contraction in earnings and operating efficiency, which have contributed to the stock’s subdued performance. The company’s operating profit has declined at an annualised rate of 13.99% over the past five years, indicating challenges in sustaining growth momentum.
Balance Sheet Strength and Debt Metrics
Despite the earnings pressures, Credo Brands Marketing Ltd maintains a robust balance sheet. The debt to EBITDA ratio is a modest 1.31 times, reflecting a manageable debt burden relative to earnings before interest, tax, depreciation, and amortisation. This level of leverage suggests the company has a strong capacity to service its debt obligations.
Additionally, the company’s ROCE of 18.5% further emphasises its operational efficiency and capital utilisation. These metrics provide some stability amid the stock’s price volatility and earnings decline.
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Shareholding and Market Perception
The majority shareholding in Credo Brands Marketing Ltd is held by promoters, indicating concentrated ownership. The company’s Mojo Score currently stands at 31.0, with a Mojo Grade of Sell, reflecting a downgrade from Hold on 29 Oct 2025. This rating change aligns with the stock’s recent price weakness and deteriorating financial metrics.
Market capitalisation grading is at 4, suggesting a mid-sized company within its sector. The stock’s recent day change was a marginal decline of 0.29%, continuing the trend of underperformance relative to sector peers and broader indices.
Summary of Key Performance Indicators
To summarise, Credo Brands Marketing Ltd’s key indicators as of 25 Feb 2026 are:
- 52-week low price: Rs.83.91
- One-year return: -33.46%
- Operating profit annual decline (5 years): -13.99%
- Quarterly PBT (excl. other income): Rs.7.99 crores, down 53.7%
- Quarterly PAT: Rs.8.03 crores, down 44.0%
- Operating profit to net sales (quarter): 22.93%
- Dividend yield: 3.49%
- Debt to EBITDA ratio: 1.31 times
- ROCE: 17.54% to 18.5%
- Mojo Score: 31.0 (Sell)
Sector and Market Comparison
Within the Garments & Apparels sector, Credo Brands Marketing Ltd’s recent performance contrasts with the broader market’s positive trajectory. While the Sensex and mega-cap stocks have shown gains, the company’s stock price and earnings have declined, reflecting sector-specific and company-specific pressures. The stock’s trading below all major moving averages further emphasises its current subdued momentum relative to peers.
Conclusion
Credo Brands Marketing Ltd’s fall to a 52-week low of Rs.83.91 highlights a period of sustained price weakness amid declining profitability and subdued growth metrics. Despite strong capital efficiency and manageable debt levels, the stock’s performance has lagged both sector and market benchmarks over the past year. The downgrade in Mojo Grade to Sell reflects these challenges, underscoring the cautious market stance towards the company’s near-term prospects.
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