Khadim India Ltd Stock Hits 52-Week Low Amid Continued Downtrend

Stock Performance and Market Context

On 26 Feb 2026, Khadim India Ltd’s stock recorded an intraday low of Rs.122.1, down 2.75% from the previous close, while the intraday high was Rs.128.25, representing a 2.15% gain at its peak during the session. The stock has been declining for two consecutive days, resulting in a cumulative loss of 10.18% over this period. This recent fall has further extended the stock’s underperformance relative to its sector, with a day’s underperformance of 3.46% compared to the footwear sector benchmark.

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. In contrast, the broader Sensex index opened higher at 82,418.78 points, gaining 0.17% and trading near its 52-week high, which stands at 86,159.02 points. Mega-cap stocks are leading the market rally, while Khadim India Ltd’s micro-cap status and sector-specific pressures have contributed to its lagging performance.

Financial Performance and Fundamental Metrics

Khadim India Ltd’s financial results have been under strain, with the company reporting a net sales decline of 21.77% in the December 2025 quarter. This marks the third consecutive quarter of negative results, highlighting a challenging revenue environment. Over the latest six-month period, net sales stood at Rs.187.84 crores, reflecting a contraction of 30.64% compared to the previous corresponding period.

Profitability metrics have also deteriorated. The company’s profit after tax (PAT) for the latest six months was Rs.3.31 crores, down by 59.14%, while profit before tax excluding other income (PBT less OI) was negative at Rs.-2.16 crores, a decline of 127.91%. These figures underscore the pressure on earnings and the difficulty in maintaining profitability amid declining sales.

Long-Term Growth and Profitability Concerns

Over the past five years, Khadim India Ltd has experienced a negative compound annual growth rate (CAGR) of -6.01% in net sales, indicating a contraction in its core business. The company’s return on equity (ROE) averaged 6.90%, which is modest and suggests limited profitability generated per unit of shareholder funds. Additionally, the company’s debt servicing capacity is constrained, with a high Debt to EBITDA ratio of 4.37 times, pointing to elevated leverage and potential financial risk.

These fundamental weaknesses have contributed to the stock’s downgrade in rating. On 11 Aug 2025, the company’s Mojo Grade was revised downward from Sell to Strong Sell, reflecting deteriorating financial health and market outlook. The current Mojo Score stands at 15.0, reinforcing the cautious stance on the stock’s prospects.

Relative Valuation and Market Position

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 1.2, which is considered very attractive. This valuation discount relative to peers’ historical averages indicates that the market has priced in much of the company’s difficulties.

However, the stock’s one-year total return of -59.58% starkly contrasts with the Sensex’s positive 10.44% return over the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, underscoring its relative weakness within the broader market.

Shareholding and Market Capitalisation

The majority shareholding in Khadim India Ltd remains with the promoters, maintaining control over the company’s strategic direction. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status within the footwear sector. This positioning influences liquidity and investor attention, factors that can affect price movements in the stock.

Summary of Key Metrics

Khadim India Ltd’s stock price has declined from a 52-week high of Rs.332 to the current low of Rs.122.1, representing a drop of approximately 63.2%. The stock’s recent two-day fall of over 10% adds to the cumulative negative returns of nearly 60% over the past year. The company’s financial results have shown a consistent decline in sales and profitability, with negative earnings growth and subdued returns on equity and capital employed.

While the valuation metrics suggest the stock is trading at a discount relative to its peers, the fundamental performance and market positioning have led to a strong sell rating by MarketsMOJO, with a Mojo Grade of Strong Sell and a Mojo Score of 15.0. The company’s leverage and profitability ratios remain areas of concern, contributing to the cautious market stance.

Market Environment and Sector Performance

The footwear sector, in which Khadim India Ltd operates, has faced headwinds that have impacted sales growth and margins. Despite the broader market’s positive momentum, led by mega-cap stocks and the Sensex trading near its 52-week high, Khadim India Ltd’s micro-cap status and sector-specific pressures have limited its ability to participate in the rally. The stock’s underperformance relative to the sector and benchmark indices highlights the challenges faced by the company in the current market environment.

Conclusion

Khadim India Ltd’s stock reaching a 52-week low of Rs.122.1 reflects a combination of subdued financial performance, valuation adjustments, and market dynamics. The company’s declining sales, profitability pressures, and elevated leverage have contributed to the stock’s sustained downtrend. While valuation metrics indicate a discount relative to peers, the overall financial and market indicators have resulted in a strong sell rating and continued caution among market participants.

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