The stock of Credo Brands Marketing, operating within the Garments & Apparels sector, recorded this fresh low despite the broader market showing resilience. The Sensex, India's benchmark index, opened flat and later traded positively at 84,755.06, a mere 0.63% below its own 52-week high of 85,290.06. Mega-cap stocks led the market gains, with the Sensex trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish market environment.
In contrast, Credo Brands Marketing's share price performance has diverged notably from the market trend. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure. Today's performance saw the stock outperform its sector by 0.33%, and it gained after two consecutive days of decline, yet the overall trend remains subdued.
Over the past year, Credo Brands Marketing's stock has generated a return of -41.41%, significantly underperforming the Sensex, which recorded a positive return of 9.25% during the same period. The stock's 52-week high was Rs.213.7, highlighting the extent of the decline to the current low.
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Financial data for Credo Brands Marketing reveals a challenging performance over the medium to long term. The company’s operating profit has shown a compound annual rate of change of -7.83% over the last five years, reflecting subdued growth in core earnings. The latest six-month period ending September 2025 reported a profit after tax (PAT) of Rs.25.17 crore, which has declined at a rate of -30.53% compared to the previous corresponding period.
Institutional investor participation has also contracted, with a decrease of -1.34% in their stake over the previous quarter. Currently, institutional investors hold 2.88% of the company’s shares. This reduction in institutional holdings may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
Credo Brands Marketing’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 underperformance highlights the stock’s relative weakness within the broader market and its sector.
Despite these challenges, certain financial metrics indicate areas of strength within the company’s operations. Credo Brands Marketing reports a return on capital employed (ROCE) of 17.54%, which is considered high and suggests efficient use of capital in generating earnings. Additionally, the company maintains a low debt to EBITDA ratio of 1.31 times, indicating a strong capacity to service its debt obligations.
Valuation metrics also present an interesting picture. The company’s enterprise value to capital employed ratio stands at 1.4, which is described as very attractive and suggests that the stock is trading at a discount relative to its peers’ historical valuations. However, over the past year, profits have declined by -2.6%, consistent with the stock’s negative return over the same period.
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In summary, Credo Brands Marketing’s stock has reached a significant 52-week low of Rs.97.2 amid a market environment where the broader indices have maintained strength. The company’s financial indicators reflect subdued growth and declining profitability over recent periods, alongside reduced institutional investor participation. Nevertheless, the firm demonstrates strong management efficiency and debt servicing ability, with valuation metrics suggesting the stock trades at a discount relative to its sector peers.
Today’s stock movement, including a slight gain following two days of decline, may indicate some short-term price stabilisation. However, the stock remains below all major moving averages, underscoring the prevailing downward trend. Investors analysing Credo Brands Marketing should consider these factual data points within the context of the company’s sector and broader market conditions.
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