Stock Price Movement and Market Context
On 8 December 2025, Credo Brands Marketing's share price touched an intraday low of Rs.93.05, representing a fall of 2.57% on the day. This level also marks the stock's lowest point in the past year and its all-time low. The stock has been on a losing streak for four consecutive days, accumulating a negative return of 6.28% during this period. Compared to its sector peers, the stock underperformed by 1.01% on the same day.
Currently, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum. The 52-week high for Credo Brands Marketing stands at Rs.213.70, highlighting the extent of the decline over the past year.
Broader Market Environment
The broader market, represented by the Sensex, opened flat but later declined by 224.33 points, or 0.36%, closing at 85,400.51. Despite this dip, the Sensex remains close to its 52-week high of 86,159.02, just 0.89% away. The index is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, suggesting an overall bullish trend in the market contrasting with the stock's performance.
Financial Performance and Returns
Credo Brands Marketing's one-year stock return is recorded at -52.08%, significantly lagging behind the Sensex's 4.50% gain over the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, reflecting challenges in maintaining competitive returns.
Operating profit growth over the last five years has been negative, with an annual rate of -7.83%. The latest six-month period shows a decline in profit after tax (PAT) to Rs.25.17 crores, representing a contraction of 30.53%. These figures point to subdued financial results in both the near and longer term.
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Institutional Holding Trends
Institutional investors have reduced their stake in Credo Brands Marketing by 1.34% in the previous quarter, now collectively holding 2.88% of the company's shares. This decline in institutional participation may reflect a reassessment of the company's fundamentals by investors with greater analytical resources.
Valuation and Efficiency Metrics
Despite the stock's price decline, Credo Brands Marketing exhibits certain strengths in its financial structure. The company reports a return on capital employed (ROCE) of 17.54%, indicating efficient use of capital in generating earnings. Additionally, the debt to EBITDA ratio stands at a modest 1.31 times, suggesting a manageable level of leverage and a strong capacity to service debt obligations.
The enterprise value to capital employed ratio is 1.4, which is considered attractive relative to peer valuations. This metric indicates that the stock is trading at a discount compared to the average historical valuations of its sector counterparts.
Dividend yield at the current price is 3.15%, offering a relatively high income component for shareholders amid the price weakness.
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Summary of Key Performance Indicators
Over the past year, Credo Brands Marketing's profits have declined by 2.6%, while the stock price has fallen by over half. The company's long-term growth trajectory, as reflected in operating profit trends, has been negative. The stock's current valuation metrics suggest it is trading at a discount relative to its peers, supported by strong management efficiency and debt servicing capability.
However, the sustained price decline and reduced institutional interest highlight ongoing concerns about the company's financial performance and market positioning within the Garments & Apparels sector.
Conclusion
Credo Brands Marketing's fall to a 52-week low of Rs.93.05 underscores a challenging period for the company’s stock, marked by subdued financial results and diminished investor participation. While certain financial ratios indicate operational strengths, the stock’s performance relative to the broader market and sector peers remains under pressure. The current market environment, with the Sensex maintaining a bullish stance, contrasts with the stock’s downward trajectory.
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