Kamadgiri Fashion Ltd Stock Hits 52-Week Low Amidst Continued Downtrend

Stock Performance and Market Context

On 1 Feb 2026, Kamadgiri Fashion Ltd’s share price declined by 5.57% intraday, reaching the new low of Rs.74.6. This drop contributed to a two-day consecutive fall, with the stock losing 8.05% over this period. The stock’s performance today notably lagged behind the Garments & Apparels sector, underperforming by 7.34%. This contrasts with the broader market, where the Sensex opened 119.19 points higher and was trading at 82,501.84, up 0.28% on the day.

While the Sensex is currently 4.43% below its 52-week high of 86,159.02, it continues to be supported by mega-cap stocks leading the gains. Kamadgiri Fashion Ltd, however, remains well below its own 52-week high of Rs.154, reflecting a stark divergence from the market’s upward momentum.

Technical Indicators Highlight Weak Momentum

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates persistent bearish momentum and a lack of short- to medium-term buying interest. The sustained trading below these averages often signals continued pressure on the stock price and challenges in regaining upward traction.

Financial Metrics and Fundamental Assessment

Kamadgiri Fashion Ltd’s financial profile continues to reflect subdued growth and profitability concerns. The company’s long-term Return on Capital Employed (ROCE) stands at a modest 6.42%, indicating limited efficiency in generating returns from its capital base. The half-year ROCE has further deteriorated to 2.00%, underscoring weakening profitability in the near term.

Net sales growth has been virtually stagnant, with an annualised increase of just 0.03% over the past five years. This flat revenue trajectory has contributed to a decline in profits, which have fallen by 34.1% over the last year. The company’s ability to manage its working capital is also under strain, as evidenced by a low debtors turnover ratio of 0.69 times in the half-year period, suggesting slower collection cycles.

Debt and Valuation Considerations

The company’s debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 4.31 times. This elevated leverage ratio indicates that earnings before interest, taxes, depreciation, and amortisation are insufficiently covering debt obligations, which may constrain financial flexibility.

Despite these challenges, Kamadgiri Fashion Ltd’s valuation metrics present a contrasting picture. The stock trades at an attractive Enterprise Value to Capital Employed ratio of 1.2, which is below the average historical valuations of its peers. This discount reflects market caution but also suggests that the stock is priced with significant risk premiums.

Comparative Performance and Market Position

Over the past year, Kamadgiri Fashion Ltd has delivered a total return of -17.12%, markedly underperforming the Sensex, which posted a 7.43% gain over the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, highlighting persistent underperformance relative to broader market benchmarks.

The company’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 24 Nov 2025. This grading reflects weak long-term fundamentals and deteriorating financial health. The Market Cap Grade is 4, indicating a micro-cap status with associated liquidity and volatility considerations.

Shareholding and Sectoral Context

The majority of Kamadgiri Fashion Ltd’s shares are held by non-institutional investors, which may influence trading patterns and liquidity. Operating within the Garments & Apparels sector, the company faces competitive pressures and market dynamics that have contributed to its subdued growth and profitability metrics.

While the broader market and sector indices have shown resilience, Kamadgiri Fashion Ltd’s stock continues to reflect the impact of its financial and operational challenges, as well as investor sentiment towards its long-term prospects.

Summary of Key Financial and Market Indicators

To summarise, Kamadgiri Fashion Ltd’s stock performance and financial indicators as of 1 Feb 2026 are as follows:

• New 52-week low price: Rs.74.6
• Day’s intraday low: Rs.74.6 (-5.57%)
• Two-day consecutive decline: -8.05%
• Trading below all major moving averages (5, 20, 50, 100, 200 days)
• One-year total return: -17.12% versus Sensex +7.43%
• Long-term ROCE: 6.42%; Half-year ROCE: 2.00%
• Net sales growth (5 years annualised): 0.03%
• Debt to EBITDA ratio: 4.31 times
• Debtors turnover ratio (half-year): 0.69 times
• Mojo Score: 23.0; Mojo Grade: Strong Sell (upgraded from Sell on 24 Nov 2025)
• Market Cap Grade: 4 (micro-cap)
• Enterprise Value to Capital Employed: 1.2 (attractive valuation)

The combination of these factors has culminated in the stock’s recent decline to its lowest level in a year, reflecting ongoing challenges in growth, profitability, and financial leverage.

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