Gini Silk Mills Falls to 52-Week Low of Rs.65.5 Amidst Market Pressure

On 18 Nov 2025, Gini Silk Mills touched an intraday low of Rs.65.5, representing a day change of -2.15%. This movement places the stock below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. Over the last three trading sessions, the stock has recorded a cumulative return of -3.45%, underperforming its sector by approximately -2.08% today.

In contrast, the broader market index, Sensex, experienced a volatile session. After opening 91.42 points higher, it declined by 403.24 points to trade at 84,639.13, down -0.37%. The Sensex remains close to its 52-week high of 85,290.06, just 0.77% away, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend for the market overall.

Examining Gini Silk Mills’ performance over the past year reveals a stark contrast to the broader market. The stock has declined by -48.83%, while the Sensex has recorded a positive return of 9.42% over the same period. The 52-week high for Gini Silk Mills was Rs.165.2, highlighting the extent of the recent price erosion.

Financial metrics indicate subdued long-term fundamentals for the company. The average Return on Capital Employed (ROCE) stands at 0.82%, reflecting limited efficiency in generating returns from capital investments. Over the last five years, net sales have grown at an annual rate of 14.04%, with operating profit expanding at 16.50% annually. However, the company’s ability to service debt remains constrained, as evidenced by an average EBIT to interest ratio of -0.05.

Recent half-year results show a ROCE of 4.43%, the lowest recorded, while net profits have declined by -11.2% over the past year. Despite these challenges, the company maintains a Price to Book Value of 0.7, suggesting an attractive valuation relative to its peers’ historical averages. The Return on Equity (ROE) is reported at 3.6%, indicating modest profitability for shareholders.

Majority ownership remains with the promoters, which may influence strategic decisions and capital allocation. The stock’s market capitalisation grade is rated at 4, reflecting its micro-cap status within the Trading & Distributors sector.

In summary, Gini Silk Mills’ stock has experienced a notable decline to its lowest level in the past year, reflecting a combination of subdued financial performance and sector-specific pressures. The stock’s trading below all major moving averages and its underperformance relative to the Sensex highlight the challenges faced by the company in the current market environment.

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