Recent Price Movement and Market Context
On 17 Dec 2025, Khadim India’s shares touched an intraday low of Rs.165, representing a decline of 2.02% on the day and underperforming its sector by approximately 2.05%. This marks the sixth consecutive trading session of losses, during which the stock has returned -10.23%. The current price stands significantly below its 52-week high of Rs.390.55, underscoring the extent of the recent correction.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. Meanwhile, the broader market, as measured by the Sensex, experienced a volatile session, opening higher by 176.40 points but closing lower by 289.04 points at 84,567.22, a decline of 0.13%. The Sensex remains close to its 52-week high, trading 1.88% below the peak of 86,159.02, and is positioned above its 50-day and 200-day moving averages, signalling a generally bullish market environment contrasting with Khadim India’s performance.
Financial Performance Highlights
Khadim India’s financial results over recent periods reveal pressures on both top-line and bottom-line metrics. The company’s net sales for the latest six months stood at Rs.197.30 crores, reflecting a contraction of 25.46% compared to the corresponding prior period. Profit after tax (PAT) for the same period was Rs.2.52 crores, showing a decline of 62.21%. These figures indicate a subdued revenue environment and reduced profitability.
Return on Capital Employed (ROCE) for the half year was recorded at 3.38%, one of the lowest levels observed, while the average Return on Equity (ROE) over recent years has been 6.90%, suggesting limited profitability generated from shareholders’ funds. The company’s compound annual growth rate (CAGR) in net sales over the last five years has been negative at -4.87%, highlighting a prolonged period of sales contraction.
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Debt and Valuation Metrics
The company’s leverage position is notable, with a Debt to EBITDA ratio of 4.37 times, indicating a relatively high debt burden compared to earnings before interest, tax, depreciation, and amortisation. This level of indebtedness may constrain financial flexibility and increase servicing costs.
Despite these challenges, Khadim India’s valuation metrics present some contrasting signals. The stock’s Enterprise Value to Capital Employed ratio stands at 1.4, which is considered attractive relative to peers. Additionally, the company’s ROCE of 7.5% suggests some efficiency in capital utilisation, although this has not translated into stronger market performance.
Investor Participation and Market Sentiment
Institutional investors have reduced their holdings by 1.96% in the previous quarter, collectively holding 3.22% of the company’s shares. This decline in institutional stake may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources. The stock’s performance over the past year has been notably below benchmark indices, with a return of -55.51% compared to the Sensex’s 4.78% gain. Furthermore, Khadim India has underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent relative weakness.
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Sector and Industry Positioning
Khadim India operates within the footwear industry, a sector that has experienced varied performance across companies. The stock’s recent underperformance relative to its sector peers and the broader market highlights specific challenges faced by the company. While the Sensex and many other stocks in the sector maintain positions above key moving averages, Khadim India’s shares remain below all major averages, signalling a divergence from broader market trends.
The stock’s current valuation discount compared to historical peer averages may reflect market concerns about the company’s growth prospects and profitability metrics. Over the past year, profits have declined by approximately 14.7%, further contributing to cautious market sentiment.
Summary of Key Metrics
To summarise, Khadim India’s stock has reached a new 52-week low of Rs.165 after a sustained period of price decline. The company’s financial indicators reveal contraction in sales and profits, subdued returns on equity and capital employed, and a relatively high debt load. Institutional investors have reduced their stakes, and the stock’s performance trails major indices and sector benchmarks. Despite some valuation appeal, the overall market assessment remains cautious.
These factors collectively provide a comprehensive view of the current state of Khadim India’s stock and its recent market behaviour.
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