Khadim India Stock Falls to 52-Week Low of Rs.201.25 Amidst Prolonged Downtrend

Current Market Context and Price Movement

On 3 December 2025, Khadim India’s share price touched Rs.201.25, the lowest level in the past 52 weeks. This price point is notably below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. Despite this, the stock outperformed its sector by 0.78% on the day, suggesting some relative resilience within the footwear industry.

In contrast, the broader market index, the Sensex, opened flat but later declined by 365.80 points, closing at 84,784.84, down 0.42%. The Sensex remains close to its 52-week high of 86,159.02, trading 1.62% below that peak and maintaining a bullish stance with the 50-day moving average above the 200-day moving average.

Long-Term and Recent Performance Analysis

Over the last year, Khadim India’s stock has shown a return of -46.65%, a stark contrast to the Sensex’s positive 4.87% return during the same period. This underperformance extends beyond the one-year horizon, with the stock also lagging behind the BSE500 index over the last three years and the recent three-month period. The 52-week high for Khadim India was Rs.418.95, highlighting the extent of the decline from its peak.

Financial Metrics Reflecting Company Performance

Khadim India’s financial indicators over recent periods provide insight into the factors influencing its stock price. The company’s net sales for the latest six months stood at Rs.197.30 crore, showing a contraction of 25.46% compared to the previous corresponding period. Profit after tax (PAT) for the same period was Rs.2.52 crore, reflecting a decline of 62.21%. These figures point to subdued revenue generation and profitability in the near term.

The return on capital employed (ROCE) for the half-year period was recorded at 3.38%, one of the lowest levels observed, indicating limited efficiency in generating returns from capital invested. The average return on equity (ROE) over time has been 6.90%, which suggests modest profitability relative to shareholders’ funds.

Debt and Valuation Considerations

Debt servicing capacity remains a concern, with the company’s debt to EBITDA ratio at 4.37 times, signalling a relatively high leverage position. This level of indebtedness may constrain financial flexibility and impact future earnings stability.

On the valuation front, Khadim India’s enterprise value to capital employed ratio is 1.5, which is considered attractive relative to its peers. The stock is trading at a discount compared to the average historical valuations within the footwear sector, reflecting market caution amid the company’s recent financial trends.

Institutional Investor Activity

Institutional investors have reduced their holdings by 1.96% over 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.

Sector and Market Comparison

Within the footwear sector, Khadim India’s performance contrasts with broader market trends. While the Sensex maintains a bullish posture and trades above key moving averages, Khadim India’s share price remains below all major moving averages, underscoring its relative weakness. The sector itself has experienced mixed results, but Khadim India’s stock has notably lagged behind peers and benchmark indices.

Over the past year, the company’s profits have declined by 14.7%, further reflecting the challenges faced in maintaining earnings growth. This decline in profitability, combined with subdued sales and high leverage, has contributed to the stock’s downward trajectory.

Summary of Key Price and Performance Data

Khadim India’s 52-week low of Rs.201.25 represents a significant milestone in its price movement, down from a 52-week high of Rs.418.95. The stock’s one-year return of -46.65% contrasts sharply with the Sensex’s positive 4.87% return, highlighting the divergence in performance. The company’s financial metrics, including net sales contraction, reduced PAT, low ROCE, and high debt to EBITDA ratio, provide context for the stock’s valuation and market sentiment.

Institutional investor participation has declined, and the stock trades at a discount to sector peers, reflecting a cautious market stance. Despite these factors, the stock’s valuation metrics suggest it is priced attractively relative to capital employed.

Conclusion

Khadim India’s fall to a 52-week low of Rs.201.25 underscores the challenges the company has faced over the past year, both in terms of financial performance and market valuation. The stock’s underperformance relative to the Sensex and its sector peers is evident in its price action and key financial indicators. While the broader market maintains a more positive tone, Khadim India’s share price reflects a period of subdued growth and profitability.

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