Recent Price Movement and Market Context
On 8 December 2025, Khadim India’s share price closed at Rs.185.35, down by 1.67% on the day. This decline outpaced the footwear sector’s underperformance, with the stock lagging the sector by 1.11%. The stock has been on a losing streak for five days, cumulatively returning -10.16% during this period. Notably, Khadim India is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.
In contrast, the broader market index, Sensex, experienced a modest decline of 0.4%, closing at 85,366.32 points. The Sensex remains close to its 52-week high of 86,159.02, trading 0.93% below that peak and maintaining a bullish stance with the 50-day moving average positioned above the 200-day moving average. This divergence highlights Khadim India’s relative underperformance compared to the overall market.
Long-Term Performance and Valuation Metrics
Over the past year, Khadim India’s stock has delivered a return of -51.86%, significantly trailing the Sensex’s 4.46% gain during the same period. The stock’s 52-week high was Rs.392, indicating a substantial contraction in value over the last twelve months. This underperformance extends beyond the one-year horizon, with the company lagging the BSE500 index over the last three years, one year, and three months.
From a valuation perspective, Khadim India presents a relatively attractive enterprise value to capital employed ratio of 1.4, supported by a return on capital employed (ROCE) of 7.5%. These figures suggest the stock is trading at a discount relative to its peers’ historical valuations. However, this valuation is tempered by other financial indicators that reflect challenges in the company’s operational and financial health.
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Financial Performance and Profitability Trends
Khadim India’s financial results over the latest six-month period reveal a contraction in key metrics. Net sales stood at Rs.197.30 crores, reflecting a decline of 25.46% compared to the previous corresponding period. Profit after tax (PAT) was recorded at Rs.2.52 crores, showing a reduction of 62.21%. The half-year return on capital employed (ROCE) was notably low at 3.38%, indicating limited efficiency in generating returns from capital investments.
The company’s long-term net sales growth rate, measured as a compound annual growth rate (CAGR) over the last five years, is negative at -4.87%. This trend points to a contraction in revenue generation capacity over an extended period. Additionally, the average return on equity (ROE) is 6.90%, which suggests modest profitability relative to shareholders’ funds.
Debt and Institutional Holding Dynamics
Khadim India’s debt servicing capacity is constrained, with a debt to EBITDA ratio of 4.37 times. This elevated leverage ratio indicates a higher burden of debt relative to earnings before interest, taxes, depreciation, and amortisation. Such a level of indebtedness may affect the company’s financial flexibility and cost structure.
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 participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
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Sector and Peer Comparison
Within the footwear industry, Khadim India’s recent performance contrasts with broader sector trends. While the sector has faced headwinds, the company’s stock has underperformed relative to peers and the overall market indices. The stock’s current valuation discount relative to peers may reflect market concerns about its growth prospects and financial health.
Profitability pressures are evident, with profits falling by 14.7% over the past year. This decline, combined with subdued sales growth and high leverage, contributes to the cautious market stance on the stock.
Summary of Key Metrics
To summarise, Khadim India’s stock has reached a 52-week low of Rs.185.35 after a sustained period of price declines. The company’s financial indicators show contraction in sales and profits, low returns on equity and capital employed, and elevated debt levels. Institutional investors have reduced their stakes, and the stock trades below all major moving averages. These factors collectively illustrate the challenges faced by Khadim India in the current market environment.
While the broader market indices maintain a positive trajectory, Khadim India’s stock performance remains subdued, reflecting the company’s specific financial and operational circumstances.
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