Stock Performance and Market Context
On 17 Feb 2026, Khadim India Ltd’s stock price settled at Rs.150.2, down 0.85% on the day and underperforming the footwear sector by 1.83%. This marks the sixth consecutive day of losses, during which the stock has declined by 10.78%. The current price is less than half of its 52-week high of Rs.332, underscoring the extent of the recent sell-off.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. In contrast, the broader Sensex index showed resilience, rising 0.3% to close at 83,529.37, just 3.15% shy of its own 52-week high of 86,159.02. While the Sensex remains below its 50-day moving average, the 50DMA itself is positioned above the 200DMA, indicating a generally positive medium-term market trend.
Financial Performance and Fundamental Indicators
Khadim India Ltd’s financial results have reflected challenges over recent quarters. The company reported a decline in net sales by 21.77% in the December 2025 quarter, contributing to a series of negative earnings announcements over the last three quarters. The latest six-month profit after tax (PAT) stood at Rs.3.31 crores, representing a contraction of 59.14% compared to the previous period.
Long-term growth has also been subdued, with a compound annual growth rate (CAGR) of net sales at -6.01% over the past five years. Profitability metrics remain modest, with an average return on equity (ROE) of 6.90%, indicating limited returns generated on shareholders’ funds. The company’s ability to service debt is constrained, as evidenced by a high Debt to EBITDA ratio of 4.37 times and an operating profit to interest coverage ratio of just 1.71 times in the latest quarter.
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Comparative Performance and Valuation
Over the past year, Khadim India Ltd’s stock has delivered a negative return of 44.69%, markedly underperforming the Sensex’s positive 9.91% gain during the same period. The stock has also lagged behind the BSE500 index over one-year, three-year, and three-month timeframes, highlighting persistent underperformance relative to broader market benchmarks.
Despite these challenges, the company’s return on capital employed (ROCE) stands at 7.5%, which, combined with an enterprise value to capital employed ratio of 1.3, suggests a valuation that is attractive relative to its peers. The stock is trading at a discount compared to the average historical valuations of companies within the footwear sector.
Liquidity and Efficiency Metrics
Operational efficiency indicators also point to areas of concern. The debtor turnover ratio for the half-year period is at a low 2.02 times, indicating slower collection cycles. This, coupled with the company’s limited interest coverage, reflects pressures on working capital management and financial flexibility.
Promoters remain the majority shareholders, maintaining control over the company’s strategic direction amid these financial headwinds.
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Mojo Score and Market Sentiment
Khadim India Ltd’s Mojo Score currently stands at 15.0, with a Mojo Grade of Strong Sell as of 11 Aug 2025, an upgrade from the previous Sell rating. This reflects the market’s cautious stance on the stock given its financial metrics and recent performance trends. The company’s market capitalisation grade is rated at 4, indicating a relatively modest market cap within its sector.
Despite the broader market’s positive momentum, led by mega-cap stocks, Khadim India Ltd’s stock continues to face downward pressure, reflecting the divergence between company-specific fundamentals and overall market trends.
Summary of Key Metrics
To summarise, Khadim India Ltd’s stock has reached a new 52-week low of Rs.150.2, following a sustained decline over six trading sessions. The company’s financial results have shown contraction in sales and profits, with key ratios signalling limited profitability and elevated leverage. While valuation metrics suggest the stock is trading at a discount relative to peers, the ongoing negative earnings trajectory and liquidity indicators remain areas of concern.
Market participants will note the contrast between Khadim India Ltd’s performance and the broader Sensex, which continues to approach its own 52-week highs, supported by mega-cap leadership and positive sectoral trends.
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