Stock Price Movement and Market Context
On the day in question, Khadim India’s stock touched an intraday low of Rs.107.8, representing a 3.62% drop from the previous close. The stock underperformed its sector by 2.29%, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the prevailing bearish sentiment surrounding the stock.
In comparison, the broader market benchmark, the Sensex, opened 356.91 points lower and was trading at 79,597.45, down 0.52%. While the Sensex itself is below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a mixed but relatively more stable market environment compared to Khadim India’s share performance.
Long-Term Performance and Valuation Metrics
Over the past year, Khadim India’s stock has delivered a negative return of 59.65%, starkly contrasting with the Sensex’s positive 7.09% gain over the same period. The stock’s 52-week high was Rs.330.8, highlighting the extent of the decline from its peak.
The company’s market capitalisation grade stands at 4, reflecting its relatively modest size within the footwear sector. The Mojo Score assigned to Khadim India is 15.0, with a Mojo Grade of Strong Sell as of 11 Aug 2025, an upgrade from the previous Sell rating. This grading reflects the stock’s fundamental and technical weaknesses as assessed by MarketsMOJO’s proprietary evaluation system.
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Financial Performance and Profitability Concerns
Khadim India’s financial results have shown a downward trend in recent quarters. The company reported a 21.77% decline in net sales in the quarter ending December 2025, amounting to Rs.86.24 crores. This marks the third consecutive quarter of negative results, signalling ongoing challenges in revenue generation.
Profit after tax (PAT) for the latest six months stood at Rs.3.31 crores, reflecting a contraction of 59.14% compared to previous periods. The company’s return on equity (ROE) averaged 6.90%, indicating limited profitability relative to shareholders’ funds. Additionally, the debt servicing capacity remains constrained, with a high Debt to EBITDA ratio of 4.37 times, suggesting elevated leverage levels.
The debtor turnover ratio for the half-year period was recorded at 2.02 times, the lowest in recent assessments, pointing to slower collections and potential liquidity pressures.
Comparative Sector and Valuation Insights
Despite the subdued financial performance, Khadim India’s return on capital employed (ROCE) is 7.5%, which, combined with an enterprise value to capital employed ratio of 1.1, indicates a valuation that is attractive relative to its capital base. The stock is trading at a discount compared to the average historical valuations of its peers in the footwear sector.
However, the company’s long-term growth trajectory has been negative, with a compound annual growth rate (CAGR) of net sales declining by 6.01% over the last five years. This underperformance is reflected in the stock’s returns, which have lagged behind the BSE500 index over the last three years, one year, and three months.
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Shareholding and Market Position
The majority shareholding in Khadim India Ltd remains with the promoters, maintaining control over the company’s strategic direction. Despite the current valuation challenges and subdued financial metrics, the company continues to operate within the footwear sector, which remains competitive and sensitive to consumer demand fluctuations.
Given the stock’s current position below all major moving averages and its recent performance metrics, the market continues to reflect cautious sentiment towards Khadim India’s near-term prospects.
Summary of Key Metrics
To summarise, Khadim India Ltd’s stock has reached a new 52-week low of Rs.107.8, following a sustained decline over the past week. The company’s financial indicators reveal a contraction in sales and profits, elevated leverage, and modest returns on equity. While valuation metrics such as ROCE and enterprise value to capital employed suggest some relative attractiveness, the overall trend remains subdued compared to sector peers and market benchmarks.
This comprehensive overview highlights the factors contributing to the stock’s current valuation and market position as of early March 2026.
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