Stock Price Movement and Market Context
On the day the new low was recorded, Khadim India’s stock touched an intraday high of Rs.152, yet closed lower with a day change of -1.21%, underperforming the Footwear sector by 1.09%. 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, despite a volatile session, remains only 3.36% below its 52-week high of 86,159.02, though it too closed slightly lower at 83,358.22.
Over the past year, Khadim India Ltd has delivered a total return of -48.18%, markedly underperforming the Sensex’s positive 9.70% return over the same period. The stock’s 52-week high was Rs.332, underscoring the extent of the decline from its peak.
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Financial Performance and Fundamental Indicators
Khadim India Ltd’s financial metrics reveal several areas of concern that have contributed to the stock’s decline. The company has experienced a negative compound annual growth rate (CAGR) of -6.01% in net sales over the last five years, indicating a contraction in revenue generation. This trend was exacerbated in the most recent half-year period, with net sales falling by 21.77%, leading to very negative quarterly results declared in December 2025.
Profitability metrics have also deteriorated. The company’s average return on equity (ROE) stands at 6.90%, reflecting modest profitability relative to shareholders’ funds. The latest six-month profit after tax (PAT) was Rs.3.31 crores, representing a decline of 59.14% compared to previous periods. Additionally, the debt servicing capacity is limited, with 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, indicating tight financial leverage.
Liquidity and operational efficiency indicators further highlight challenges. The debtors turnover ratio for the half-year is at a low 2.02 times, suggesting slower collection cycles and potential working capital pressures.
Long-Term and Recent Performance Trends
The stock’s underperformance extends beyond the recent year. Khadim India Ltd has lagged behind the BSE500 index over the last three years, one year, and three months, reflecting persistent difficulties in regaining investor confidence. The cumulative impact of declining sales, shrinking profits, and subdued returns has weighed heavily on the stock price.
Valuation and Relative Positioning
Despite the challenges, Khadim India Ltd’s valuation metrics present a contrasting picture. The company’s return on capital employed (ROCE) is 7.5%, and it trades at an enterprise value to capital employed ratio of 1.3, which is considered very attractive. The stock is currently priced at a discount relative to its peers’ average historical valuations, suggesting that the market has factored in the company’s recent performance setbacks.
However, this valuation discount accompanies a significant decline in profitability, with profits falling by 53.1% over the past year, underscoring the cautious stance reflected in the stock price.
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Shareholding and Market Sentiment
The majority shareholding in Khadim India Ltd remains with promoters, indicating concentrated ownership. The company’s Mojo Score currently stands at 15.0, with a Mojo Grade of Strong Sell as of 11 Aug 2025, downgraded from a Sell rating. The market capitalisation grade is 4, reflecting the company’s relatively modest size within the sector.
These factors, combined with the stock’s sustained decline and fundamental pressures, have contributed to the prevailing market sentiment and valuation levels.
Summary of Key Metrics
To summarise, Khadim India Ltd’s stock has reached a new 52-week low of Rs.146.2, following a seven-day losing streak and a 13.59% drop in returns over that period. The company’s financial performance has been marked by declining sales, reduced profitability, and constrained debt servicing ability. While valuation metrics suggest a discount relative to peers, the overall trend reflects subdued operational and financial conditions.
The broader market context shows the Sensex trading near its 52-week high, contrasting with Khadim India’s underperformance. The stock’s position below all major moving averages further emphasises the current downward momentum.
Investors and market participants will continue to monitor the company’s financial disclosures and market developments as the stock navigates this challenging phase.
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