Recent Price Movement and Market Context
On 25 Feb 2026, Credo Brands’ share price slipped to Rs.84.5, setting a fresh 52-week and all-time low. This decline comes after three consecutive days of losses, cumulatively eroding 4.77% of its value. The stock underperformed its sector by 1.67% on the day, while the Sensex advanced by 0.71%, highlighting the relative weakness of Credo Brands in the current market environment.
Technical indicators further underline the bearish trend, with the stock trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day. This broad-based weakness across multiple timeframes signals persistent downward momentum.
Performance Metrics Over Various Time Horizons
Credo Brands’ performance over recent periods has been notably subdued compared to benchmark indices. Over the past one year, the stock has delivered a negative return of -33.46%, starkly contrasting with the Sensex’s 11.00% gain. Year-to-date, the stock is down 16.45%, while the Sensex has declined by a more modest 2.83%. Over three months, the stock’s return of -14.98% again trails the Sensex’s -2.10%.
Longer-term comparisons reveal a lack of growth, with the stock showing no appreciation over three, five, and ten-year periods, while the Sensex has advanced 39.26%, 62.25%, and 260.42% respectively. This underperformance against broad market indices and sector peers underscores the challenges faced by Credo Brands in generating shareholder value.
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Financial Results and Profitability Trends
The company’s quarterly financials reveal a contraction in profitability. Profit Before Tax excluding other income (PBT LESS OI) for the latest quarter stood at Rs.7.99 crores, representing a decline of 53.7% compared to the average of the previous four quarters. Similarly, Profit After Tax (PAT) fell by 44.0% to Rs.8.03 crores in the same period.
Operating profit margin relative to net sales has also reached a low point, registering at 22.93% in the recent quarter. This figure is the lowest recorded in the company’s recent history, indicating margin pressures amid challenging market conditions.
Long-Term Growth and Returns Analysis
Over the past five years, Credo Brands has experienced a negative compound annual growth rate (CAGR) of -13.99% in operating profit, reflecting subdued business expansion. This trend is mirrored in the stock’s returns, which have underperformed the BSE500 index over one year, three months, and three years.
The stock’s underperformance is further highlighted by its relative returns against the Sensex and sector benchmarks, with consistent negative returns across multiple timeframes.
Balance Sheet Strength and Valuation Metrics
Despite the challenges in profitability and share price performance, Credo Brands exhibits certain financial strengths. The company maintains a robust Return on Capital Employed (ROCE) of 17.54%, indicating efficient utilisation of capital resources. Additionally, the Debt to EBITDA ratio stands at a conservative 1.31 times, suggesting manageable leverage and a strong capacity to service debt obligations.
Valuation metrics also point to an attractive profile relative to peers. The enterprise value to capital employed ratio is 1.3, signalling a discount compared to the average historical valuations of comparable companies in the Garments & Apparels sector. This valuation discount is accompanied by a relatively high dividend yield of 3.49% at the current share price, providing some income support to investors.
Shareholding and Market Perception
The majority ownership of Credo Brands remains with promoters, reflecting concentrated control. The company’s Mojo Score stands at 31.0, with a Mojo Grade of Sell, downgraded from Hold on 29 Oct 2025. This rating reflects the market’s cautious stance on the stock amid its recent performance and financial trends.
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Summary of Key Financial and Market Indicators
Credo Brands Marketing Ltd’s recent all-time low share price of Rs.84.5 is a culmination of sustained declines across multiple periods and underperformance relative to market benchmarks. The company’s financial results show contraction in profitability, with significant falls in quarterly PBT and PAT, alongside the lowest operating profit margin in recent quarters.
While the company demonstrates strong capital efficiency and manageable debt levels, these positives have not translated into share price appreciation or long-term growth. The stock’s valuation remains discounted relative to peers, accompanied by a notable dividend yield of 3.49%.
Overall, the stock’s trajectory reflects a challenging environment for Credo Brands, with persistent declines in returns and earnings over recent years.
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