Recent Price Movement and Market Context
On 15 Dec 2025, Khadim India’s share price reached Rs.169.5, the lowest level recorded in the past year. Despite this, the stock outperformed its sector peers marginally today, registering a day change of 0.93%, which was 1.08% ahead of the footwear sector’s performance. Notably, the stock has shown a slight recovery after three consecutive days of decline, though it remains below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This indicates a persistent bearish trend over multiple time horizons.
The broader market environment presents a contrasting picture. The Sensex opened lower at 84,891.75, down by 375.91 points or 0.44%, and was trading at 85,044.81 at the time of reporting, a decline of 0.26%. The benchmark index remains close to its 52-week high of 86,159.02, just 1.31% away, supported by bullish moving averages with the 50-day DMA positioned above the 200-day DMA. Small-cap stocks have been leading the market, with the BSE Small Cap index gaining 0.08% today, highlighting a divergence between Khadim India’s performance and broader market trends.
Long-Term Price Performance
Over the last twelve months, Khadim India’s stock has recorded a return of -53.79%, a stark contrast to the Sensex’s positive return of 3.54% over the same period. The stock’s 52-week high was Rs.390.55, underscoring the extent of the decline from its peak. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the past three years, one year, and three months, reflecting sustained challenges in maintaining investor confidence and market valuation.
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Financial Metrics and Profitability Trends
Khadim India’s financial data over recent periods highlights several areas of concern. The company’s net sales have shown a compound annual growth rate (CAGR) of -4.87% over the last five years, indicating a contraction in revenue generation. The latest six-month period ending September 2025 recorded net sales of Rs.197.30 crore, reflecting a decline of 25.46% compared to the previous corresponding period.
Profit after tax (PAT) for the same six-month period stood at Rs.2.52 crore, down by 62.21%, signalling a significant reduction in profitability. Return on capital employed (ROCE) for the half year was reported at 3.38%, one of the lowest levels observed, while the average return on equity (ROE) over time has been 6.90%, suggesting limited returns generated on shareholders’ funds.
Debt servicing capacity remains constrained, with a Debt to EBITDA ratio of 4.37 times, indicating a relatively high leverage position. This ratio suggests that the company’s earnings before interest, tax, depreciation, and amortisation are insufficiently robust to comfortably cover its debt obligations.
Institutional Holding and Market Participation
Institutional investors have reduced their stake in Khadim India by 1.96% over the previous quarter, with their collective holding now at 3.22%. This decline in institutional participation may reflect a cautious stance given the company’s recent financial performance and valuation metrics. Institutional investors typically possess greater resources and analytical capabilities to assess company fundamentals, and their reduced involvement could be indicative of a shift in market assessment.
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 1.4, which is considered attractive relative to peers. The stock is trading at a discount compared to the average historical valuations of its footwear sector counterparts. However, this valuation discount coincides with a profit decline of 14.7% over the past year, underscoring the complex balance between valuation and earnings performance.
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Sector and Industry Context
Khadim India operates within the footwear industry, a sector that has experienced mixed performance amid evolving consumer preferences and competitive pressures. While the broader market indices such as the Sensex have maintained a generally positive trend, Khadim India’s stock has diverged notably, reflecting company-specific factors rather than sector-wide dynamics. The footwear sector’s performance today was modest, with Khadim India’s slight outperformance of the sector contrasting with its longer-term underperformance.
Summary of Key Challenges
The stock’s fall to Rs.169.5, its 52-week low, encapsulates a series of financial and market challenges. These include subdued revenue growth, declining profitability, elevated leverage, and reduced institutional interest. The company’s returns on equity and capital employed remain modest, while recent profit figures have contracted significantly. These factors collectively contribute to the stock’s current valuation and price levels.
Recent Trading Dynamics
Although the stock has experienced a slight gain following three days of consecutive declines, it remains entrenched below all major moving averages, signalling that the prevailing market sentiment continues to weigh on the share price. The broader market’s positive momentum, particularly among small-cap stocks, has not translated into a sustained recovery for Khadim India.
Conclusion
Khadim India’s stock reaching a new 52-week low of Rs.169.5 reflects a culmination of financial pressures and market sentiment factors. The company’s recent financial results, leverage position, and institutional shareholding trends provide context for this price movement. While the stock’s valuation metrics indicate a discount relative to peers, the underlying earnings and growth figures highlight ongoing challenges within the company’s operational and financial framework.
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