Recent Price Movement and Market Context
On 8 December 2025, Credo Brands Marketing’s share price touched ₹94.9, setting a fresh 52-week and all-time low. The stock has recorded a consecutive four-day decline, resulting in a cumulative return of -4.57% over this period. Today’s trading session saw a drop of 0.73%, which is more pronounced than the Sensex’s decline of 0.26% on the same day. This underperformance extends beyond daily fluctuations, with the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downward trend.
Comparatively, the Garments & Apparels sector has shown steadier performance, with Credo Brands Marketing’s returns lagging behind sector averages. Over the past week, the stock declined by 4.19%, while the Sensex remained relatively stable with a marginal fall of 0.18%. The divergence becomes more marked over longer periods: a one-month return of -16.91% contrasts with the Sensex’s 2.73% gain, and a three-month return of -26.11% stands against the Sensex’s 5.82% rise.
Long-Term Performance and Shareholder Participation
Over the last year, Credo Brands Marketing’s stock has recorded a substantial negative return of -51.38%, while the Sensex has appreciated by 4.62%. Year-to-date figures also highlight a stark contrast, with the stock down by 45.87% against the Sensex’s 9.40% gain. The stock’s performance over three and five years remains flat at 0.00%, whereas the Sensex has delivered returns of 36.62% and 87.43% respectively over the same periods. The ten-year return for Credo Brands Marketing is also flat, compared to the Sensex’s 237.75% growth, underscoring a prolonged period of underperformance relative to the broader market.
Institutional investor participation has also shifted, with a reduction in their stake by 1.34% over the previous quarter. Currently, institutional investors hold 2.88% of the company’s shares. This decline in institutional ownership may reflect a reassessment of the company’s fundamentals by investors with extensive analytical resources.
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Financial Metrics and Profitability Trends
Credo Brands Marketing’s operating profit has exhibited a negative compound annual growth rate of -7.83% over the last five years, indicating a contraction in core earnings capacity. The company’s latest six-month profit after tax (PAT) stands at ₹25.17 crore, reflecting a decline of 30.53% compared to previous periods. This contraction in profitability aligns with the stock’s downward trajectory.
Despite these challenges, the company demonstrates a relatively high return on capital employed (ROCE) of 17.54%, suggesting efficient use of capital in generating earnings. Additionally, the debt servicing capability appears robust, with a Debt to EBITDA ratio of 1.31 times, indicating manageable leverage levels. The enterprise value to capital employed ratio is 1.4, which is considered attractive and suggests the stock is trading at a discount relative to its peers’ historical valuations.
Dividend yield at the current price is 3.15%, which is notable given the stock’s price movement. However, this yield must be viewed in the context of the company’s overall financial performance and market valuation.
Sector and Peer Comparison
Within the Garments & Apparels sector, Credo Brands Marketing’s performance contrasts with broader sector trends and market indices. While the sector and Sensex have recorded positive returns over recent months and years, the stock has consistently lagged behind. This underperformance is evident across multiple time horizons, including three months, one year, and three years, where the stock’s returns remain below those of the BSE500 index and sector averages.
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Summary of Key Challenges
The stock’s decline to an all-time low price is underpinned by a combination of subdued profit growth, negative returns over multiple time frames, and reduced institutional ownership. The company’s operating profit contraction over five years and a significant fall in recent PAT figures highlight the financial pressures faced. While management efficiency and debt metrics remain relatively strong, these factors have not translated into positive market performance.
Credo Brands Marketing’s valuation metrics indicate the stock is trading at a discount compared to its peers, yet this has not been sufficient to arrest the downward price movement. The stock’s dividend yield of 3.15% offers some income return, but this is set against a backdrop of sustained price depreciation.
Conclusion
The recent all-time low in Credo Brands Marketing’s share price reflects a prolonged period of subdued financial performance and market sentiment. The stock’s returns have lagged significantly behind benchmark indices and sector peers, with key profitability indicators showing contraction. Institutional investors have reduced their holdings, and the stock trades below all major moving averages, underscoring the prevailing market assessment. These factors collectively illustrate the severity of the current situation facing the company within the Garments & Apparels sector.
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