Credo Brands Marketing Ltd Stock Hits All-Time Low Amidst Continued Downtrend

Stock Performance and Market Context

On 24 Feb 2026, Credo Brands Marketing Ltd closed just 0.35% above its 52-week low of ₹84.6, marking a significant milestone in its price trajectory. The stock underperformed the Garments & Apparels sector by 0.91% on the day, registering a decline of 1.76% compared to the Sensex’s fall of 0.86%. This marks the second consecutive day of losses, with a cumulative return of -4.53% over this period.

Examining the broader timeframe, the stock’s returns have been notably subdued. Over the past one year, Credo Brands has delivered a negative return of -33.41%, starkly contrasting with the Sensex’s positive 10.91% gain. Year-to-date performance also reflects a decline of -16.46%, compared to the Sensex’s modest fall of -3.10%. Over three months, the stock has fallen by -14.30%, while the Sensex declined by only -2.73%. Longer-term returns over three, five, and ten years remain flat at 0.00%, whereas the Sensex has appreciated by 38.87%, 62.62%, and 257.66% respectively.

Technical indicators further highlight the bearish trend. Credo Brands is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

Financial Metrics and Profitability Trends

Credo Brands Marketing Ltd’s recent quarterly results reveal a contraction in profitability. The Profit Before Tax excluding Other Income (PBT LESS OI) for the quarter stood at ₹7.99 crores, 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 ₹8.03 crores over the same period.

The operating profit margin relative to net sales has also reached a low point, registering at 22.93% in the latest quarter. This figure is the lowest recorded in recent periods, indicating margin pressures within the company’s core operations.

Over the last five years, operating profit has declined at an annualised rate of -13.99%, reflecting challenges in sustaining growth. This negative trend in profitability has contributed to the stock’s underperformance relative to the BSE500 index over one, three, and twelve-month intervals.

Valuation and Efficiency Indicators

Despite the subdued price performance, certain financial ratios suggest operational efficiency. The company maintains a high Return on Capital Employed (ROCE) of 17.54%, indicating effective utilisation of capital resources. Additionally, the Debt to EBITDA ratio stands at a conservative 1.31 times, reflecting a manageable debt burden and a strong capacity to service liabilities.

Valuation metrics also point to an attractive entry point relative to peers. The Enterprise Value to Capital Employed ratio is 1.3, signalling that the stock is trading at a discount compared to historical averages within the sector. The current dividend yield is notable at 3.5%, offering income potential at prevailing prices.

Promoters remain the majority shareholders, maintaining significant control over the company’s strategic direction.

Market Grade and Analyst Assessment

MarketsMOJO assigns Credo Brands Marketing Ltd a Mojo Score of 37.0, categorising the stock with a Sell grade as of 29 Oct 2025, a downgrade from its previous Hold rating. The Market Capitalisation Grade is rated 4, reflecting its micro-cap status within the Garments & Apparels sector.

The downgrade aligns with the company’s recent financial performance and price trends, highlighting the challenges faced in reversing the downward momentum.

Summary of Price and Relative Performance

In summary, Credo Brands Marketing Ltd’s stock has experienced a sustained decline, culminating in an all-time low price level. The stock’s underperformance is evident across multiple time horizons when benchmarked against the Sensex and sector indices. Profitability metrics have deteriorated in recent quarters, with operating profit margins at historic lows and significant falls in quarterly profits.

Nonetheless, the company exhibits strong capital efficiency and a conservative debt profile, with valuation metrics suggesting a discount relative to peers. The current dividend yield of 3.5% provides a degree of income return at the prevailing price point.

Overall, the data portrays a company navigating a difficult phase, reflected in its share price and financial results.

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