Recent Price Movement and Market Context
On 5 December 2025, Khadim India’s stock recorded an intraday low of Rs.192, representing a fall of 4.79% during the trading session. This decline contributed to a four-day consecutive drop, with the stock losing approximately 6.93% over this period. The day’s performance also showed the stock underperforming its sector by 4.65%, highlighting relative weakness within the footwear industry segment.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a persistent bearish momentum, with no immediate signs of reversal based on these indicators.
In contrast, the broader market has shown resilience. The Sensex opened lower by 139.84 points but recovered sharply to close 459.97 points higher at 85,585.45, a gain of 0.38%. The index remains close to its 52-week high of 86,159.02, trading above its 50-day moving average, supported by strong performances from mega-cap stocks. This divergence between Khadim India and the broader market underscores the stock’s relative underperformance.
Long-Term Performance and Financial Metrics
Over the past year, Khadim India’s stock has generated a return of -49.16%, significantly lagging behind the Sensex’s 4.68% gain during the same period. The stock’s 52-week high was Rs.418.95, indicating a substantial erosion in market value over the last twelve months.
Financially, the company has exhibited subdued growth and profitability metrics. Net sales have shown a compound annual growth rate (CAGR) of -4.87% over the last five years, reflecting contraction rather than expansion. The latest quarterly net sales stood at Rs.101.60 crore, down by 36.73% compared to the previous period.
Profit after tax (PAT) for the latest six months was Rs.2.52 crore, representing a decline of 62.21%. Return on capital employed (ROCE) for the half-year was recorded at 3.38%, indicating limited efficiency in generating returns from the company’s capital base. The average return on equity (ROE) is 6.90%, which suggests modest profitability relative to shareholders’ funds.
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Debt and Institutional Holding Trends
Khadim India’s financial leverage remains a concern, with a Debt to EBITDA ratio of 4.37 times. This level indicates a relatively high debt burden compared to earnings before interest, taxes, depreciation, and amortisation, which may constrain financial flexibility.
Institutional investors have reduced their stake by 1.96% in the previous quarter, now collectively holding 3.22% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
Valuation and Comparative Metrics
Despite the challenges, Khadim India’s valuation metrics present some contrasting signals. The company’s ROCE of 7.5% and an enterprise value to capital employed ratio of 1.5 suggest a valuation that is attractive relative to its capital base. The stock is trading at a discount compared to the average historical valuations of its peers in the footwear sector.
However, the stock’s profit figures have declined by 14.7% over the past year, aligning with the broader trend of subdued financial performance. The company’s underperformance extends beyond the last year, with returns below the BSE500 index over one, three years, and the last three months.
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Summary of Key Factors Affecting Khadim India’s Stock
The stock’s recent fall to Rs.192 marks a new low in its 52-week trading range, reflecting a combination of weak sales growth, declining profitability, and elevated debt levels. The reduction in institutional holdings and the stock’s position below all major moving averages further illustrate the challenges faced by the company in regaining market confidence.
While the broader market and sector indices have shown resilience, Khadim India’s performance has remained subdued, with returns significantly trailing benchmark indices. The company’s valuation metrics indicate some degree of discount relative to peers, but this has not translated into positive price momentum in recent months.
Investors and market participants continue to monitor the stock’s trajectory amid these developments, with the current price level representing a critical point in its trading history.
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