Recent Price Movement and Market Context
On 16 Dec 2025, Khadim India’s shares touched an intraday low of Rs.167.45, representing a fall of 2.33% on the day. This decline extended a losing streak that has persisted for five consecutive trading sessions, during which the stock has recorded a cumulative return of -8.35%. The stock’s performance today also lagged behind the footwear sector by 1.3%, indicating relative underperformance within its industry group.
Further compounding the negative momentum, Khadim India is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a persistent bearish trend over both short and long-term horizons.
In contrast, the broader market index, Sensex, experienced a decline of 0.52% today, closing at 84,767.89 points after opening 187.75 points lower. Despite this dip, Sensex remains approximately 1.64% below its 52-week high of 86,159.02 and continues to trade above its 50-day and 200-day moving averages, signalling a more resilient market backdrop compared to Khadim India’s stock.
Long-Term Performance and Financial Metrics
Over the past year, Khadim India’s stock has recorded a return of -55.25%, a stark contrast to the Sensex’s positive return of 3.69% during the same period. The stock’s 52-week high was Rs.390.55, highlighting the extent of the decline from its peak.
Financially, 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 half-year results reveal further pressure, with net sales at Rs.197.30 crores reflecting a decline of 25.46% compared to the previous period. Profit after tax (PAT) for the same period stood at Rs.2.52 crores, down by 62.21%, underscoring challenges in profitability.
The return on capital employed (ROCE) for the half year was recorded at 3.38%, one of the lowest levels observed, while the average return on equity (ROE) over time has been 6.90%, signalling modest returns on shareholders’ funds.
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Debt and Institutional Holding Trends
Khadim India’s ability to service its debt is constrained, with a Debt to EBITDA ratio of 4.37 times. This elevated leverage ratio points to a relatively high debt burden compared to earnings before interest, taxes, depreciation, and amortisation.
Institutional investors have reduced their stake 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.
Comparative Valuation and Profitability
Despite the challenges, Khadim India’s valuation metrics present some contrasts. The company’s ROCE stands at 7.5%, and it has an enterprise value to capital employed ratio of 1.4, which is considered attractive relative to its peers. The stock is trading at a discount compared to the average historical valuations of comparable companies in the footwear sector.
However, profitability trends remain subdued, with profits falling by 14.7% over the past year. The stock’s underperformance extends beyond the last year, as it has also lagged behind the BSE500 index over the last three years, one year, and three months.
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Summary of Key Concerns
The stock’s fall to Rs.167.45 marks a new low in a year characterised by declining sales, shrinking profits, and subdued returns on capital. The combination of high leverage, reduced institutional interest, and underwhelming financial results has contributed to the stock’s downward trajectory.
While the broader market maintains a more positive technical stance, Khadim India’s share price remains below critical moving averages, reflecting ongoing pressure. The company’s valuation metrics suggest some relative attractiveness, but this is tempered by the persistent challenges in revenue and profit generation.
Investors and market participants will continue to monitor the stock’s performance in the context of sector trends and overall market conditions, as the footwear industry navigates evolving consumer demand and competitive dynamics.
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