Khadim India Hits New Low Amid Weak Fundamentals and Declining Investor Interest

Khadim India, a microcap player in the footwear industry, has experienced significant activity today, hitting a new 52-week low of Rs. 231.75. This decline marks a continuation of a downward trend, with the stock falling 3.44% over the past two days. The stock has been trading within a narrow range of Rs. 1.55, indicating limited volatility in its price movements.
In terms of performance metrics, Khadim India has shown a stark contrast to the broader market, with a one-year return of -35.73%, compared to the Sensex's decline of just -1.75%. The company's long-term fundamentals appear weak, highlighted by a -5.67% compound annual growth rate in net sales over the last five years and a high debt-to-EBITDA ratio of 17.33 times, suggesting challenges in servicing its debt.

Additionally, institutional investor participation has waned, with a 0.61% decrease in their stake over the last quarter, now holding only 5.18% of the company. This trend, coupled with a low return on equity of 4.59%, underscores the ongoing struggles faced by Khadim India in a competitive market landscape.