Credo Brands Marketing Ltd Stock Falls to 52-Week Low of Rs.84.5

Stock Price Movement and Market Context

On 24 Feb 2026, Credo Brands Marketing Ltd’s share price reached Rs.84.5, its lowest level in the past year and an all-time low. This decline comes after two consecutive days of losses, with the stock falling by 4.43% over this period. The day’s trading saw the stock underperform its sector by 0.25%, reflecting broader challenges within the Garments & Apparels industry as well as company-specific headwinds.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. This technical positioning underscores the downward momentum that has persisted over recent months.

In comparison, the broader market benchmark, the Sensex, also experienced a decline on the same day, falling by 467.67 points or 0.85% to close at 82,584.87. Despite this, the Sensex remains 4.33% below its 52-week high of 86,159.02, indicating that while the market has faced some pressure, the index has not mirrored the steep decline seen in Credo Brands’ stock.

Financial Performance and Profitability Trends

Credo Brands Marketing Ltd’s recent financial results have contributed to the subdued investor sentiment. The company reported a Profit Before Tax (PBT) of Rs.7.99 crores in the December 2025 quarter, representing a sharp 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.

The operating profit margin relative to net sales also hit a low point, registering at 22.93% for the quarter. This figure is notably below historical levels and highlights the pressure on the company’s core earnings capacity.

Over the last five years, the company’s operating profit has contracted at an annualised rate of 13.99%, reflecting challenges in sustaining long-term growth. This trend has been mirrored in the stock’s performance, which has declined by 33.03% over the past year, significantly underperforming the Sensex’s 10.91% gain during the same period.

Valuation and Efficiency Metrics

Despite the recent price decline, Credo Brands Marketing Ltd maintains certain financial strengths. The company exhibits a high Return on Capital Employed (ROCE) of 17.54%, indicating efficient utilisation of capital in generating profits. This level of management efficiency is a positive aspect amid the broader challenges faced.

Additionally, the company’s debt servicing capability remains robust, with a low Debt to EBITDA ratio of 1.31 times. This suggests that the firm is not over-leveraged and retains the capacity to meet its financial obligations without undue strain.

Valuation metrics also point to an attractive position relative to peers. The enterprise value to capital employed ratio stands at 1.3, which is considered very attractive and indicates that the stock is trading at a discount compared to the average historical valuations of its sector counterparts.

At the current price level, the stock offers a dividend yield of 3.5%, which is relatively high and may be of interest to income-focused investors.

Comparative Performance and Shareholding

Credo Brands Marketing Ltd’s stock has underperformed not only the Sensex but also the BSE500 index over multiple time frames, including the last three years, one year, and three months. This consistent underperformance highlights the challenges the company has faced in delivering returns comparable to broader market indices.

The majority shareholding remains with the promoters, indicating a stable ownership structure. This concentration of ownership can influence strategic decisions and long-term company direction.

Summary of Key Metrics

To summarise, Credo Brands Marketing Ltd’s stock has reached a new 52-week low of Rs.84.5, reflecting a sustained downtrend driven by declining profitability and subdued growth prospects. The company’s operating profit has contracted at an annualised rate of nearly 14% over five years, while quarterly profits have seen significant declines in the most recent period.

Despite these challenges, the firm maintains strong management efficiency and a solid balance sheet with manageable debt levels. Its valuation metrics suggest the stock is trading at a discount relative to peers, and the dividend yield remains attractive at 3.5%.

Market conditions have also been unfavourable, with the broader Sensex index experiencing declines, though not to the same extent as Credo Brands. The stock’s technical indicators remain weak, trading below all major moving averages, signalling continued caution among market participants.

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