Recent Price Movement and Market Context
On 2 December 2025, Dollar Industries recorded its lowest price in the past year at Rs.336.8. This decline follows a four-day consecutive fall, during which the stock has returned -4.97%. The trading range on the day was relatively narrow, confined to Rs.2.7, indicating limited intraday volatility despite the downward trend. The stock’s performance today was broadly in line with its sector peers, reflecting a general cautious sentiment within the Garments & Apparels industry.
Dollar Industries is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a sustained period of subdued momentum relative to its historical price levels.
Meanwhile, the broader market has shown mixed signals. The Sensex opened 316.39 points lower and was trading at 85,308.86, down 0.39% on the day. Despite this, the Sensex remains close to its 52-week high of 86,159.02, just 1% shy, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating an overall bullish trend for the benchmark index.
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Long-Term Performance and Comparative Analysis
Over the past year, Dollar Industries has recorded a return of -36.38%, a stark contrast to the Sensex’s positive 6.31% return over the same period. This underperformance extends beyond the last 12 months, with the stock trailing the BSE500 index in each of the previous three annual periods. The 52-week high for Dollar Industries was Rs.555, highlighting the extent of the recent decline.
Examining the company’s growth metrics over the last five years, net sales have shown a compound annual growth rate of 14.64%, while operating profit has grown at a rate of 9.26%. These figures indicate moderate expansion but have not translated into commensurate stock price appreciation, reflecting challenges in translating operational results into market valuation gains.
Financial Health and Profitability Metrics
Despite the stock’s price challenges, Dollar Industries maintains a strong capacity to service its debt obligations. The average EBIT to interest ratio stands at a robust 11.17, signalling healthy earnings relative to interest expenses. This financial stability is further supported by recent quarterly results.
In the half-year ended September 2025, the company reported its highest Return on Capital Employed (ROCE) at 13.75%, alongside a quarterly operating profit to interest ratio of 9.89 times and a PBDIT of Rs.60.31 crore, the highest recorded in recent periods. These figures suggest that the company’s core operations continue to generate solid returns and maintain efficient interest coverage.
Additionally, the company’s valuation metrics reflect a relatively attractive position, with an Enterprise Value to Capital Employed ratio of 1.8. This valuation is lower than the average historical valuations of its peers, indicating that the stock is trading at a discount within its sector.
Profit Growth and Institutional Participation
Over the past year, Dollar Industries’ profits have risen by 14.2%, despite the stock’s negative return. The company’s Price/Earnings to Growth (PEG) ratio stands at 1.3, suggesting a valuation that is somewhat aligned with its earnings growth trajectory.
Institutional investors have increased their stake in the company by 1.97% over the previous quarter, now collectively holding 5.28% of the stock. This increase in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
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Summary of Current Market Standing
Dollar Industries’ recent decline to Rs.336.8 marks a significant price milestone, reflecting a period of subdued market sentiment and relative underperformance compared to broader indices and sector peers. While the stock price has moved below all major moving averages, the company’s financial indicators reveal ongoing profitability and a capacity to meet debt obligations comfortably.
The contrast between the stock’s price trajectory and its operational results, including profit growth and strong interest coverage, highlights a complex market environment where valuation and price movements do not always align directly with financial performance. Institutional investors’ increased holdings may indicate a nuanced view of the company’s prospects within the Garments & Apparels sector.
As the stock trades at a discount relative to peers and historical valuations, it remains a notable subject for market participants monitoring the sector’s dynamics and individual company fundamentals.
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