Price Movement and Market Context
On 9 December 2025, Khadim India’s stock recorded an intraday low of Rs.176.45, representing a notable decline from its 52-week high of Rs.392. Despite this low, the stock managed to recover somewhat during the trading session, reaching an intraday high of Rs.185, which was 2.58% above the previous close. This rebound followed five consecutive days of price falls, indicating some short-term buying interest.
However, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This contrasts with the broader market, where the Sensex opened lower at 84,742.87 points, down 0.42%, but continues to trade above its 50-day and 200-day moving averages. The Sensex is currently 1.65% shy of its own 52-week high of 86,159.02, reflecting a more resilient market backdrop.
Long-Term Performance and Sector Comparison
Over the past year, Khadim India’s stock has delivered a return of -51.94%, significantly lagging behind the Sensex’s 3.99% gain during the same period. This underperformance extends beyond the last 12 months, with the stock also trailing the BSE500 index over the last three years and the recent three-month period. The footwear sector itself has experienced mixed performance, but Khadim India’s decline has been more pronounced than many of its peers.
Such a steep fall in stock price has brought the company’s market capitalisation to a lower tier, with a market cap grade of 4, reflecting its diminished standing among listed companies.
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Financial Metrics and Profitability Indicators
Khadim India’s financial data over recent periods highlights several areas of concern. 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 previous corresponding 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 pressure on profitability.
The company’s return on capital employed (ROCE) for the half year was recorded at 3.38%, which is relatively low and suggests limited efficiency in generating returns from its capital base. The average return on equity (ROE) over recent years has been 6.90%, pointing to modest profitability relative to shareholders’ funds.
Additionally, Khadim India’s long-term net sales growth rate has been negative, with a compound annual growth rate (CAGR) of -4.87% over the last five years. This trend underscores challenges in expanding the top line over an extended period.
Debt and Valuation Considerations
The company’s debt servicing capacity is constrained, as reflected by a Debt to EBITDA ratio of 4.37 times. This level indicates a relatively high leverage position, which may limit financial flexibility. Despite these concerns, the stock’s valuation metrics suggest it is trading at a discount compared to its peers. The enterprise value to capital employed ratio stands at 1.4, and the ROCE of 7.5% points to a valuation that some may consider attractive relative to historical averages in the sector.
However, the stock’s discounted valuation has coincided with a profit decline of 14.7% over the past year, reinforcing the cautious stance on its near-term financial health.
Institutional Investor Activity
Institutional investors have reduced their holdings in Khadim India by 1.96% over the previous quarter, now collectively holding 3.22% of the company’s shares. This reduction in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.
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Summary of Recent Trading and Market Environment
Today’s trading session saw Khadim India outperform its sector by 2.53%, despite the stock hitting its 52-week low. This intraday recovery after a series of declines may reflect short-term technical factors rather than a fundamental shift. The broader market environment remains mixed, with small-cap stocks leading gains on the BSE Small Cap index, which rose by 0.32% today.
In contrast, Khadim India’s price remains well below all major moving averages, underscoring the prevailing downward momentum. The Sensex’s relative strength and proximity to its own 52-week high highlight the divergence between the company’s stock performance and the overall market trend.
Conclusion
Khadim India’s stock reaching a new 52-week low of Rs.176.45 reflects a continuation of a multi-year decline in both price and financial performance. The company’s contraction in sales, reduced profitability, and elevated leverage contribute to the subdued market valuation. Institutional investors’ reduced stake further signals a cautious market assessment. While the stock’s valuation metrics indicate a discount relative to peers, the recent financial results and price trends illustrate ongoing challenges within the company’s operating environment.
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