Stock Price Movement and Market Context
On 29 Jan 2026, Damodar Industries Ltd’s share price declined sharply, hitting an intraday low of Rs.25.07, representing a 9.13% drop on the day. This decline extended a two-day losing streak, with the stock falling by 9.15% over this period. The stock’s performance today notably underperformed the Garments & Apparels sector by 6.2%, underscoring its relative weakness within the industry.
Volatility was elevated, with an intraday weighted average price volatility of 6.47%, indicating significant price fluctuations throughout the trading session. Furthermore, the stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum.
In contrast, the broader market benchmark, the Sensex, opened flat and traded marginally lower by 0.16% at 82,209.45 points, remaining 4.8% below its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day moving average, suggesting a generally positive medium-term market trend despite the current minor pullback.
Long-Term Performance and Relative Underperformance
Damodar Industries Ltd has experienced a challenging year, with a 12-month return of -29.56%, significantly lagging behind the Sensex’s positive 7.44% return over the same period. This underperformance extends beyond the last year, as the stock has consistently trailed the BSE500 index in each of the past three annual periods.
The stock’s 52-week high was Rs.42.95, highlighting the extent of the recent decline. This sustained underperformance has contributed to the stock’s current low valuation levels and reflects ongoing concerns about the company’s financial health and growth prospects.
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Financial Metrics and Fundamental Concerns
Damodar Industries Ltd’s long-term financial indicators reveal areas of concern. The company’s net sales have declined at a compound annual growth rate (CAGR) of -6.04% over the past five years, indicating shrinking top-line performance. Profitability metrics also reflect subdued returns, with an average Return on Equity (ROE) of 7.22%, suggesting limited efficiency in generating profits from shareholders’ funds.
Debt servicing capacity remains constrained, with a high Debt to EBITDA ratio of 6.54 times, signalling elevated leverage and potential pressure on cash flows. Although the company’s debt-to-equity ratio at half-year stood at a relatively moderate 1.22 times, the high leverage relative to earnings before interest, tax, depreciation and amortisation remains a key consideration.
Adding to market concerns, 30.2% of promoter shares are pledged, which can exert additional downward pressure on the stock price in volatile or declining markets, as pledged shares may be subject to liquidation in adverse scenarios.
Recent Quarterly and Half-Year Financial Highlights
Despite the broader challenges, Damodar Industries Ltd reported some positive financial results in the quarter ending December 2025. The operating profit to interest coverage ratio reached its highest level at 2.04 times, indicating improved ability to meet interest obligations from operating earnings.
Profit after tax (PAT) for the nine months ended December 2025 rose to Rs.4.46 crores, reflecting a notable increase compared to previous periods. This profit growth of 97.2% over the past year contrasts with the stock’s negative price performance, highlighting a disconnect between earnings improvement and market valuation.
Return on Capital Employed (ROCE) remains modest at 2.4%, but the company’s valuation metrics suggest a very attractive price level, with an enterprise value to capital employed ratio of 0.7. This valuation is discounted relative to peers’ historical averages, indicating the market’s cautious stance on the stock.
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Market Capitalisation and Mojo Ratings
Damodar Industries Ltd holds a Market Cap Grade of 4, reflecting its micro-cap status within the Garments & Apparels sector. The company’s Mojo Score currently stands at 32.0, with a Mojo Grade of Sell as of 12 Jan 2026, an upgrade from a previous Strong Sell rating. This adjustment indicates a slight improvement in the company’s outlook, though the overall assessment remains cautious.
The stock’s recent price action and fundamental profile continue to reflect a challenging environment, with the company’s financial metrics and market performance signalling ongoing pressures.
Summary of Key Concerns and Market Position
Damodar Industries Ltd’s fall to a 52-week low of Rs.25.07 is the culmination of sustained underperformance, weak sales growth, and elevated leverage. The stock’s consistent lag behind benchmark indices and sector peers over multiple years underscores the difficulties faced by the company in regaining investor confidence.
While recent profit growth and improved interest coverage ratios offer some positive signals, these have yet to translate into a stabilisation or recovery in the share price. The high proportion of pledged promoter shares and the stock’s trading below all major moving averages further contribute to the cautious market sentiment.
Overall, Damodar Industries Ltd remains positioned in a challenging segment of the Garments & Apparels sector, with valuation and financial metrics reflecting the current market assessment of its prospects.
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