Recent Price Movement and Market Context
The stock has been on a losing streak for the past three consecutive sessions, registering a cumulative decline of 6.33% over this period. Despite this, Khadim India marginally outperformed the footwear sector today by 0.54%. However, the broader market environment remains mixed, with the Sensex opening flat and currently trading slightly lower by 0.14% at 84,925.36 points. The Sensex remains close to its 52-week high of 86,159.02, trading 1.45% below that peak and maintaining a bullish stance above its 50-day and 200-day moving averages.
Khadim India’s share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent downward momentum. The stock’s 52-week high stands at Rs.390.55, highlighting the extent of the recent decline.
Financial Performance and Fundamental Indicators
The company’s long-term financial metrics reveal challenges that have contributed to its current valuation pressures. Over the last five years, Khadim India has experienced a negative compound annual growth rate (CAGR) of -4.87% in net sales, indicating a contraction in revenue generation. The latest half-year results further underscore this trend, with net sales declining by 25.46% to Rs.197.30 crores and profit after tax (PAT) shrinking by 62.21% to Rs.2.52 crores.
Return on Capital Employed (ROCE) for the half year was notably low at 3.38%, while the average Return on Equity (ROE) stands at 6.90%, reflecting modest profitability relative to shareholders’ funds. The company’s debt servicing capacity is also constrained, with a high Debt to EBITDA ratio of 4.37 times, suggesting elevated leverage and potential financial strain.
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Market Sentiment and Institutional Participation
Institutional investors have reduced their holdings in Khadim India by 1.96% over the previous quarter, now collectively holding only 3.22% of the company’s shares. This decline in institutional participation may reflect a cautious stance given the company’s recent financial performance and valuation metrics. Institutional investors typically possess greater analytical resources, and their reduced stake could signal concerns about the company’s near-term prospects.
Comparative Performance and Valuation
Over the past year, Khadim India’s stock has delivered a negative return of 57.75%, significantly underperforming the Sensex, which has gained 7.90% over the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating sustained underperformance relative to broader market benchmarks.
Despite these challenges, the stock’s valuation metrics suggest it is trading at a discount compared to its peers. The company’s ROCE of 7.5% and an enterprise value to capital employed ratio of 1.3 indicate a relatively attractive valuation level. However, this valuation reflects the market’s assessment of the company’s subdued growth and profitability outlook.
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Summary of Key Metrics
Khadim India’s current Mojo Score stands at 17.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 11 Aug 2025. The company’s market capitalisation grade is 4, reflecting its micro-cap status. The stock’s day change today was a modest 0.16%, despite the new 52-week low price.
Profitability and growth indicators remain subdued, with the latest half-year PAT and net sales showing significant declines. The company’s leverage and return ratios further highlight the financial pressures it faces. Institutional investor participation has decreased, and the stock’s performance relative to the Sensex and sector peers continues to be weak.
Conclusion
Khadim India Ltd’s stock reaching a 52-week low of Rs.152.9 reflects a combination of subdued financial results, reduced institutional interest, and persistent underperformance relative to market benchmarks. While valuation metrics indicate the stock is trading at a discount, the company’s growth and profitability metrics remain under pressure, contributing to the current market sentiment and price levels.
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