Stock Performance and Market Context
On 25 Feb 2026, Kakatiya Textiles Ltd’s share price fell by 9.37% in a single trading session, underperforming the Garments & Apparels sector by 9.34%. This decline extends a losing streak, with the stock dropping over 20.86% in the last three consecutive sessions. The current price of Rs.8.61 is substantially lower than its 52-week high of Rs.26.75, representing a steep fall of approximately 67.8% from that peak.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex closed at 82,811.09, up 0.71% on the day and only 4.04% shy of its own 52-week high of 86,159.02. Mega-cap stocks continue to lead the market gains, highlighting the divergence between Kakatiya Textiles and the overall market trend.
Financial Metrics and Fundamental Assessment
Kakatiya Textiles Ltd’s financial health remains under pressure. The company’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 8 Jul 2025. This reflects a deterioration in the company’s fundamental strength. The Market Cap Grade is rated 4, indicating a relatively modest market capitalisation compared to peers.
Over the past year, the stock has delivered a negative return of 56.95%, while the Sensex has gained 10.97% over the same period. This stark underperformance is compounded by a negative book value, signalling weak long-term financial stability. Despite a reported annual net sales growth rate of 25.45% over the last five years, operating profit growth has stagnated at 0%, indicating challenges in translating revenue growth into profitability.
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Profitability and Earnings Trends
The company reported flat results for the quarter ending December 2025, with a net profit after tax (PAT) of Rs. -2.29 crores, representing a dramatic fall of 5488.2% compared to the previous four-quarter average. Earnings before interest, depreciation, and taxes (PBDIT) also hit a low of Rs. -2.11 crores, while profit before tax excluding other income (PBT less OI) was recorded at Rs. -2.31 crores, the lowest in recent periods.
Negative EBITDA levels further underscore the financial strain, with profitability metrics deteriorating over the past year. Profits have declined by 47.6%, reflecting the company’s inability to generate positive earnings despite revenue growth. The average debt-to-equity ratio remains at zero, indicating limited reliance on debt financing, but this has not translated into improved financial performance.
Relative Performance and Risk Assessment
Kakatiya Textiles Ltd has consistently underperformed the BSE500 benchmark over the last three years, with annual returns lagging behind the broader market. The stock’s risk profile is elevated due to its negative book value and weak long-term fundamentals. Despite being majority-owned by promoters, the company’s market valuation and financial metrics suggest caution.
The stock’s current valuation is considered risky relative to its historical averages, reflecting investor concerns about its earnings trajectory and growth prospects. This is evident in the sustained downward price trend and the recent breach of the 52-week low.
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Sector and Market Comparison
While Kakatiya Textiles Ltd struggles, the Garments & Apparels sector has seen mixed performance, with some peers maintaining steadier valuations. The Sensex’s positive trajectory, led by mega-cap stocks, contrasts with the company’s declining share price. This divergence highlights the challenges faced by Kakatiya Textiles in maintaining competitive positioning within its sector and the broader market environment.
Overall, the stock’s fall to Rs.8.61 marks a critical juncture, reflecting a combination of weak earnings, negative profitability, and sustained underperformance relative to benchmarks. The company’s financial metrics and market behaviour suggest ongoing pressures that have contributed to this new 52-week low.
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