Khadim India Stock Falls to 52-Week Low of Rs.160.95 Amid Prolonged Downtrend

Recent Price Movement and Market Context

On 18 Dec 2025, Khadim India opened with a 2% gain but faced selling pressure throughout the day, closing at its intraday low of Rs.160.95, down 2.54% from the previous close. The stock’s intraday high was Rs.168.45, representing a 2% rise from the open, but it was unable to sustain these levels. This decline contrasts with the broader footwear sector, where Khadim India underperformed by 0.63% today.

The stock has been 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. Over the past year, Khadim India’s share price has contracted by 56.10%, while the Sensex has recorded a positive return of 5.22% during the same period.

Meanwhile, the Sensex itself opened flat and traded lower by 0.26%, standing at 84,340.97 points, approximately 2.16% below its 52-week high of 86,159.02. The index is positioned below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating mixed signals for the broader market.

Financial Performance and Valuation Metrics

Khadim India’s financial indicators over recent periods highlight several areas of concern. The company’s net sales for the latest quarter stood at Rs.101.60 crores, reflecting a decline of 36.73% compared to the previous corresponding period. Profit after tax (PAT) for the last six months was Rs.2.52 crores, showing a contraction of 62.21%. Return on Capital Employed (ROCE) for the half year was recorded at 3.38%, indicating limited efficiency in generating returns from capital invested.

Over the past five years, the company’s net sales have shown a compound annual growth rate (CAGR) of -4.87%, pointing to a contraction in top-line performance. The average return on equity (ROE) is 6.90%, which suggests modest profitability relative to shareholders’ funds. Additionally, the company’s debt servicing capacity appears constrained, with a Debt to EBITDA ratio of 4.37 times, indicating a relatively high leverage position.

Institutional Holding and Market Participation

Institutional investors have reduced their stake in Khadim India by 1.96% over the previous quarter, with their current collective holding at 3.22%. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources. The stock’s performance has also lagged behind the BSE500 index over the last three years, one year, and three months, underscoring its relative underperformance within the broader market.

Valuation and Comparative Analysis

Despite the subdued financial results and share price performance, Khadim India’s valuation metrics present a contrasting picture. The company’s ROCE of 7.5% and an enterprise value to capital employed ratio of 1.3 suggest a valuation that is attractive relative to its capital base. The stock is trading at a discount compared to the average historical valuations of its peers in the footwear sector.

However, the company’s profits have declined by 14.7% over the past year, which aligns with the downward trend in its share price. The 52-week high for Khadim India was Rs.390.55, indicating that the current price level of Rs.160.95 represents a significant retracement from its peak.

Summary of Price and Performance Trends

Khadim India’s share price has experienced a sustained decline over the past year, with a cumulative loss of 56.10%. The recent seven-day stretch of losses has contributed to the stock reaching its lowest level in 52 weeks. This performance contrasts with the broader market indices, which have shown resilience and modest gains over the same period.

The stock’s inability to maintain levels above key moving averages and the reduction in institutional holdings highlight ongoing challenges in regaining investor confidence. The company’s financial results, including declining sales and profitability metrics, provide context for the subdued market sentiment.

While the valuation metrics indicate a discount relative to peers, the overall market assessment remains cautious given the recent trends in earnings and share price.

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