Recent Price Movement and Market Context
On 4 December 2025, Khadim India’s share price touched Rs.200.1, the lowest level recorded in the past year. This follows a three-day consecutive decline, during which the stock has registered a cumulative return of -2.62%. The day’s performance was broadly in line with the footwear sector, which has seen mixed activity amid broader market fluctuations.
The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent downward trend. This contrasts with the broader market, where the Sensex recovered from an initial dip to close 0.19% higher at 85,265.32 points, just 1.05% shy of its 52-week high of 86,159.02. The Sensex’s positive momentum is supported by mega-cap stocks and a bullish alignment of its 50-day and 200-day moving averages.
Long-Term Performance and Financial Indicators
Over the last twelve months, Khadim India’s stock has declined by approximately 50.15%, a stark contrast to the Sensex’s 5.32% gain during the same period. This underperformance extends beyond the past year, with the stock lagging behind the BSE500 index over one, three, and three-month intervals.
Financially, the company’s net sales have shown a compound annual growth rate (CAGR) of -4.87% over the past five years, indicating a contraction in revenue generation. The latest half-year figures reveal net sales of Rs.197.30 crores, reflecting a year-on-year reduction of 25.46%. Profit after tax (PAT) for the same period stood at Rs.2.52 crores, down by 62.21% compared to the previous year.
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Profitability and Capital Efficiency Metrics
Khadim India’s return on equity (ROE) averages 6.90%, indicating modest profitability relative to shareholders’ funds. The return on capital employed (ROCE) for the latest half-year period is reported at 3.38%, one of the lowest levels observed recently. These figures suggest limited efficiency in generating returns from invested capital.
The company’s debt servicing capacity is constrained, with a debt to EBITDA ratio of 4.37 times. This elevated leverage ratio points to a higher burden of debt relative to earnings before interest, taxes, depreciation, and amortisation, which may affect financial flexibility.
Institutional Investor Activity
Institutional investors have reduced their holdings by 1.96% in the previous quarter, now collectively owning 3.22% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with extensive analytical resources.
Valuation and Comparative Analysis
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 trades at a discount compared to its peers’ average valuations, potentially reflecting market caution.
However, the stock’s profitability has contracted by 14.7% over the past year, aligning with the broader trend of subdued financial performance.
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Sector and Market Position
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 shown resilience and upward momentum, Khadim India’s stock has diverged significantly, reflecting company-specific factors rather than sector-wide trends.
The stock’s 52-week high was Rs.418.95, more than double the current price, underscoring the extent of the decline over the past year. This wide gap between peak and current valuations highlights the challenges faced by the company in maintaining market confidence.
Summary of Key Financial and Market Data
To summarise, Khadim India’s recent stock performance is characterised by:
- A new 52-week low of Rs.200.1 reached on 4 December 2025
- A three-day consecutive decline with a cumulative return of -2.62%
- Trading below all major moving averages, indicating sustained downward momentum
- One-year stock return of -50.15%, contrasting with Sensex’s 5.32% gain
- Negative growth in net sales and profit after tax over the latest half-year period
- Low return on equity and capital employed, coupled with a high debt to EBITDA ratio
- Reduced institutional investor participation, now at 3.22% ownership
- Valuation metrics showing a discount relative to peers despite subdued profitability
These factors collectively illustrate the current state of Khadim India’s stock and financial health within the footwear sector.
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