Stock Price Movement and Market Context
On the day in question, Khadim India Ltd’s stock touched an intraday low of Rs.134.15, representing a 3.18% decline from the previous close. This drop contributed to an overall day change of -2.20%, underperforming the footwear sector by 2.94%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.
In contrast, the broader market showed resilience, with the Sensex rising 387.83 points (0.58%) to close at 83,294.66, just 3.44% shy of its 52-week high of 86,159.02. Mega-cap stocks led the market rally, while Khadim India’s performance remained subdued.
Long-Term Price Performance
Over the past year, Khadim India Ltd’s stock has declined by 52.83%, a stark contrast to the Sensex’s 10.60% gain during the same period. The stock’s 52-week high was Rs.332, underscoring the magnitude of the recent price erosion. This sustained depreciation has contributed to the company’s current market capitalisation grade of 4, reflecting its diminished market value relative to peers.
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Financial Performance and Profitability Metrics
Khadim India Ltd’s financial results have reflected a challenging environment. The company reported a decline in net sales of 21.77% in the December 2025 quarter, contributing to a series of negative quarterly results over the last three periods. The latest six-month profit after tax (PAT) stood at Rs.3.31 crore, representing a contraction of 59.14% compared to the previous corresponding period.
Return on Equity (ROE) averaged 6.90%, indicating modest profitability relative to shareholders’ funds. Return on Capital Employed (ROCE) was recorded at 7.5%, which, while modest, is accompanied by a very attractive valuation metric with an enterprise value to capital employed ratio of 1.2. Despite this valuation appeal, the company’s ability to service debt remains 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 latest quarter.
Operational Efficiency and Working Capital
Working capital management indicators also highlight areas of concern. The debtors turnover ratio for the half-year period was 2.02 times, the lowest among recent measurements, suggesting slower collection cycles. These factors collectively contribute to the company’s current rating of Strong Sell, an upgrade from the previous Sell grade as of 11 Aug 2025, reflecting deteriorated fundamentals and market sentiment.
Comparative Performance and Sector Positioning
When compared to the broader BSE500 index, Khadim India Ltd has underperformed over multiple time horizons, including the last three years, one year, and three months. The footwear sector itself has shown more resilience, with Khadim’s relative underperformance underscoring challenges specific to the company rather than the industry at large.
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Shareholding and Market Capitalisation
The majority shareholding in Khadim India Ltd remains with the promoters, maintaining a stable ownership structure. Despite this, the company’s market capitalisation grade of 4 reflects its current valuation challenges in the context of its financial performance and stock price trajectory.
Summary of Key Metrics
To summarise, Khadim India Ltd’s key financial and market metrics as of 23 Feb 2026 include:
- 52-week low price: Rs.134.15
- One-year stock return: -52.83%
- Net sales CAGR (5 years): -6.01%
- Debt to EBITDA ratio: 4.37 times
- Return on Equity (avg): 6.90%
- Return on Capital Employed: 7.5%
- Operating profit to interest coverage (quarterly): 1.71 times
- Debtors turnover ratio (half-year): 2.02 times
- Mojo Score: 15.0
- Mojo Grade: Strong Sell (upgraded from Sell on 11 Aug 2025)
Market Environment and Moving Averages
The stock’s position below all major moving averages indicates a persistent bearish trend. This technical positioning contrasts with the broader market’s positive momentum, where the Sensex is trading above its 200-day moving average and approaching its 52-week high. The divergence highlights the stock’s relative weakness within the current market cycle.
Valuation Considerations
Despite the challenges, Khadim India Ltd’s valuation metrics suggest the stock is trading at a discount relative to its historical peer averages. The enterprise value to capital employed ratio of 1.2 is considered very attractive, signalling that the market may be pricing in the company’s recent performance issues and subdued growth prospects.
Conclusion
Khadim India Ltd’s stock reaching a 52-week low of Rs.134.15 reflects a combination of subdued financial results, declining sales, and constrained profitability metrics. The stock’s underperformance relative to the Sensex and its sector peers, coupled with its position below key moving averages, underscores the challenges faced by the company in the current market environment. While valuation metrics indicate a discount, the company’s recent financial trends and credit metrics continue to weigh on investor sentiment and market valuation.
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