Khadim India Faces Financial Challenges Amid Declining Performance Metrics and Market Trends

Khadim India, a microcap player in the footwear industry, has recently undergone a financial trend adjustment reflecting challenges in its performance metrics. The company's financial performance for the quarter ending June 2025 has shown a notable decline, with a significant drop in its score over the past three months.
On a positive note, Khadim India has achieved a robust Return on Capital Employed (ROCE) of 11.20%, indicating effective utilization of capital. Additionally, the company maintains a low debt-equity ratio of 1.18 times, suggesting a conservative approach to leveraging.

However, several key indicators reveal areas of concern. The Profit After Tax (PAT) has plummeted to Rs 0.85 crore, marking an 80.4% decline. The Debtors Turnover Ratio stands at a low 2.12 times, which may indicate inefficiencies in collecting receivables. Furthermore, the Operating Profit to Interest ratio is at its lowest, recorded at 1.87 times, and net sales have contracted by 8.07%, totaling Rs 95.70 crore. The company's PBDIT has also reached a low of Rs 12.32 crore, while the Profit Before Tax less Other Income is at Rs -1.05 crore.

In terms of market performance, Khadim India has faced challenges compared to the Sensex, with a year-to-date return of -29.45% against the Sensex's 2.68%. Over the past year, the stock has declined by 31.41%, contrasting sharply with the Sensex's modest gain of 0.74%. Despite a strong performance over the last five years, where the stock rose by 117.33%, recent trends indicate a need for strategic reassessment to navigate current market conditions.