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

Stock Price Movement and Market Context

On 20 Feb 2026, Khadim India Ltd recorded its lowest price in the past year at Rs.135.5, down sharply from its 52-week high of Rs.332. The stock showed signs of a short-term rebound, gaining 1.63% on the day and touching an intraday high of Rs.143.35, outperforming the footwear sector by 2.32%. This uptick followed eight consecutive days of decline, yet the share price remains well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.

The broader market environment was relatively positive, with the Sensex recovering from an initial drop of 225.65 points to close 556.48 points higher at 82,828.97, just 4.02% shy of its 52-week high of 86,159.02. Mega-cap stocks led the rally, while the Sensex itself traded below its 50-day moving average, which remains above the 200-day average, indicating mixed signals for market momentum. In contrast, Khadim India’s performance over the past year has been notably weak, delivering a negative return of 50.89% compared to the Sensex’s 9.34% gain.

Financial Performance and Fundamental Metrics

Khadim India’s financial indicators continue to reflect subdued growth and profitability concerns. The company has experienced a compound annual growth rate (CAGR) decline of 6.01% in net sales over the last five years, underscoring a weakening top line. The latest quarterly results, declared in December 2025, showed a steep 21.77% drop in net sales, contributing to a series of three consecutive quarters with negative earnings outcomes.

Profitability metrics remain under pressure, with the latest six-month profit after tax (PAT) at Rs.3.31 crore, representing a contraction of 59.14%. The return on equity (ROE) averaged 6.90%, indicating limited efficiency in generating shareholder returns. Additionally, the company’s ability to service debt is constrained, 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 most recent quarter. The debtor turnover ratio also stands at a low 2.02 times, highlighting challenges in receivables management.

Valuation and Market Position

Despite the subdued financial performance, Khadim India’s valuation metrics present a contrasting picture. The company’s return on capital employed (ROCE) stands at 7.5%, and it trades at an enterprise value to capital employed ratio of 1.2, which is considered very attractive relative to its peers. This valuation discount reflects the market’s cautious stance given the company’s recent results and long-term growth trajectory.

However, the stock’s underperformance is not limited to the past year alone. Over the last three years, Khadim India has consistently lagged behind the BSE500 index, with returns well below sector averages. The company’s market capitalisation grade is rated at 4, and its overall Mojo Score is 15.0, with a current Mojo Grade of Strong Sell, upgraded from Sell on 11 Aug 2025. These ratings highlight the ongoing concerns regarding the company’s financial health and market outlook.

Shareholding and Sectoral Context

The majority shareholding remains with promoters, maintaining a stable ownership structure. Khadim India operates within the footwear industry, a sector that has seen mixed performance amid changing consumer preferences and competitive pressures. While the broader market and mega-cap stocks have shown resilience, Khadim India’s stock price trajectory indicates challenges in regaining investor confidence and market share.

Summary of Key Performance Indicators

To summarise, Khadim India Ltd’s stock has declined by over 50% in the last year, with a 52-week low of Rs.135.5 reached on 20 Feb 2026. The company’s net sales have contracted by 21.77% in the latest quarter, and profits have fallen by 53.1% over the past year. Debt servicing capacity remains limited, with a Debt to EBITDA ratio of 4.37 and interest coverage at 1.71 times. The stock trades below all major moving averages, reflecting a persistent downtrend despite a minor intraday recovery.

While valuation metrics such as ROCE and enterprise value to capital employed suggest the stock is trading at a discount, the overall financial and market performance indicators point to ongoing challenges for Khadim India within the footwear sector.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today