Recent Price Movement and Market Context
On 24 Feb 2026, Khadim India Ltd’s share price closed near its 52-week low, underperforming the broader footwear sector despite a slight outperformance of 1.7% relative to sector peers on the day. The stock has experienced a consecutive two-day decline, resulting in a cumulative loss of 2.2% over this short period. Notably, the share price 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 comparison, the Nifty index closed at 25,424.65, down 1.12% for the day, and remains 3.73% below its 52-week high of 26,373.20. While large-cap stocks and the Nifty Next 50 index showed modest gains, Khadim India’s micro-cap status and sector-specific pressures have contributed to its relative underperformance.
Long-Term Performance and Valuation Metrics
Over the past year, Khadim India Ltd’s stock has delivered a negative return of 53.79%, a stark contrast to the Sensex’s positive 10.44% gain during the same period. The stock’s 52-week high was ₹331.30, highlighting the extent of the decline. This underperformance extends beyond the last year, with the company lagging behind the BSE500 index over one, three, and even shorter three-month horizons.
The company’s valuation metrics present a mixed picture. While the Return on Capital Employed (ROCE) stands at 7.5%, indicating some operational efficiency, the Enterprise Value to Capital Employed ratio is a low 1.2, suggesting the stock is trading at a discount relative to its capital base. This valuation discount is further emphasised when compared to peer companies’ historical averages.
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Financial Performance and Profitability Concerns
Khadim India Ltd’s financial results have shown a downward trend, with net sales declining at a compound annual growth rate (CAGR) of -6.01% over the last five years. The most recent quarterly results, declared in December 2025, revealed a sharp 21.77% drop in net sales, contributing to a series of three consecutive quarters of negative earnings.
The company’s profitability metrics further underline the challenges faced. The average Return on Equity (ROE) is a modest 6.90%, indicating limited profitability generated from shareholders’ funds. Additionally, the latest six-month Profit After Tax (PAT) stood at ₹3.31 crores, reflecting a steep decline of 59.14% compared to previous periods.
Liquidity and debt servicing capacity remain areas of concern. The Debt to EBITDA ratio is elevated at 4.37 times, signalling a relatively high debt burden. The Debtors Turnover Ratio for the half-year is at a low 2.02 times, suggesting slower collection cycles. Furthermore, the Operating Profit to Interest coverage ratio for the quarter is just 1.71 times, indicating limited cushion to meet interest obligations.
Shareholding and Market Sentiment
The majority shareholding in Khadim India Ltd remains with the promoters, maintaining control over corporate decisions. Despite this, the stock’s Mojo Score has deteriorated, with a recent downgrade from a Sell to a Strong Sell rating on 11 Aug 2025. The current Mojo Score stands at 15.0, reflecting weak long-term fundamentals and subdued market confidence.
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Sector and Industry Positioning
Operating within the footwear industry, Khadim India Ltd faces competitive pressures from both established players and emerging brands. The sector itself has experienced mixed performance, with some companies benefiting from evolving consumer preferences and others struggling to maintain market share. Khadim’s stock performance, relative to its sector peers, has been subdued, reflecting the company’s challenges in sustaining growth and profitability.
Despite the current valuation discount, the company’s financial indicators and recent results highlight the difficulties in reversing the downtrend. The stock’s position below all major moving averages further emphasises the prevailing negative momentum in the market.
Summary of Key Financial Metrics
To encapsulate, Khadim India Ltd’s key financial and market metrics are as follows:
- 52-week low price: ₹134.15 (close to current price)
- 52-week high price: ₹331.30
- 1-year stock return: -53.79%
- Sensex 1-year return: +10.44%
- Net sales CAGR (5 years): -6.01%
- Debt to EBITDA ratio: 4.37 times
- Return on Equity (average): 6.90%
- Profit after Tax (latest 6 months): ₹3.31 crores, down 59.14%
- Debtors Turnover Ratio (HY): 2.02 times
- Operating Profit to Interest (quarterly): 1.71 times
- Mojo Score: 15.0 (Strong Sell)
- Market Cap Grade: 4
Conclusion
Khadim India Ltd’s stock reaching a 52-week low reflects a combination of subdued financial results, declining sales, and valuation pressures. The company’s challenges in maintaining profitability and managing debt levels have contributed to the sustained downtrend. While the stock trades at a discount relative to peers, the overall market sentiment and fundamental indicators remain cautious. The recent downgrade to a Strong Sell rating underscores the need for continued monitoring of the company’s financial health and market developments.
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