Khadim India Stock Falls to 52-Week Low of Rs.201.25 Amid Market Pressure

Stock Performance and Market Context

On 3 December 2025, Khadim India’s stock price touched Rs.201.25, representing a notable drop from its 52-week high of Rs.418.95. This decline reflects a year-long trend where the stock has recorded a return of -46.65%, considerably underperforming the Sensex, which has shown a positive return of 4.87% over the same period. The Sensex itself opened flat but later declined by 365.80 points, closing at 84,784.84, down 0.42%. Despite the Sensex trading above its 50-day moving average and maintaining a bullish stance, Khadim India’s shares remain below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained downward momentum.

Financial Metrics Reflecting Company Performance

Over the last five years, Khadim India’s net sales have shown a compound annual growth rate (CAGR) of -4.87%, signalling contraction in revenue generation. The company’s ability to service its debt is constrained, with a Debt to EBITDA ratio of 4.37 times, suggesting elevated leverage relative to earnings before interest, taxes, depreciation, and amortisation. Profitability metrics also indicate challenges; the average Return on Equity (ROE) stands at 6.90%, which is modest and points to limited returns generated on shareholders’ funds.

In the latest six-month period ending September 2025, the company reported a Profit After Tax (PAT) of Rs.2.52 crore, which has declined by 62.21% compared to the previous corresponding period. Net sales for the same period were Rs.197.30 crore, reflecting a contraction of 25.46%. Return on Capital Employed (ROCE) for the half year was recorded at 3.38%, one of the lowest levels observed, underscoring subdued capital efficiency.

Institutional Holding and Market Participation

Institutional investors have reduced their stake in Khadim India 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. The stock’s performance has also lagged behind the BSE500 index over the last three years, one year, and three months, indicating persistent underperformance relative to a broad market benchmark.

Valuation and Comparative Metrics

Despite the challenges, Khadim India’s valuation metrics present some points of interest. The company’s ROCE of 7.5% is accompanied by an Enterprise Value to Capital Employed ratio of 1.5, which is considered attractive relative to historical averages. The stock is trading at a discount compared to its peers’ average historical valuations, suggesting that the market has priced in the company’s recent performance trends. However, profit figures have declined by 14.7% over the past year, reinforcing the subdued earnings environment.

Sector and Industry Overview

Khadim India operates within the footwear industry, a sector that has experienced varied performance across companies. While the broader market indices such as the Sensex have maintained levels close to their 52-week highs, individual stocks like Khadim India have faced downward pressure. The company’s market capitalisation grade is relatively low, reflecting its current standing within the sector and market capitalisation spectrum.

Summary of Key Price and Performance Indicators

Today’s closing price of Rs.201.25 marks a fresh 52-week low for Khadim India, with the stock underperforming its sector by 0.69% on the day, though it marginally outperformed the sector by 0.78% in intraday movement. The stock’s position below all major moving averages signals continued caution among market participants. Over the past year, the stock’s return of -46.65% contrasts sharply with the Sensex’s positive 4.87% return, highlighting the divergence in performance.

Conclusion

Khadim India’s stock reaching a 52-week low of Rs.201.25 reflects a combination of subdued financial results, reduced institutional participation, and valuation adjustments within the footwear sector. The company’s recent financial data points to contraction in sales and profits, alongside modest returns on equity and capital employed. While the broader market maintains a generally positive trend, Khadim India’s share price continues to face downward pressure amid these factors.

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