Stock Price Movement and Market Context
On 23 December 2025, Loyal Textile Mills recorded an intraday low of Rs.193.05, representing a drop of 8.92% for the day. This decline outpaced the sector’s performance, underperforming by 8.81%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained downward trend.
In contrast, the broader market showed mixed signals. The Sensex opened 122.62 points higher but later fell by 325.08 points, closing at 85,365.02, down 0.24%. The Sensex remains close to its 52-week high of 86,159.02, trading just 0.93% below that level. Small-cap stocks led the market with a marginal gain of 0.02% on the BSE Small Cap index, highlighting a divergence between Loyal Textile Mills and smaller peers.
Financial Performance Overview
Over the past year, Loyal Textile Mills has experienced a return of -46.74%, contrasting with the Sensex’s positive return of 8.69% over the same period. The stock’s 52-week high was Rs.393, indicating a substantial reduction in market value.
The company’s quarterly net sales stood at Rs.106.54 crore, reflecting a decline of 31.4% compared to the previous four-quarter average. The latest six-month period showed a net loss after tax (PAT) of Rs.-33.44 crore, which represents a 36.55% contraction relative to prior periods. Dividend payout ratio remains at zero, indicating no dividends distributed to shareholders during the year.
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Profitability and Debt Servicing Metrics
Loyal Textile Mills’ average return on equity (ROE) is 8.54%, indicating modest profitability relative to shareholders’ funds. The company’s ability to service debt is constrained, with an average EBIT to interest ratio of 0.33, suggesting limited earnings before interest and taxes to cover interest expenses. This ratio points to a cautious stance on the company’s financial leverage and sustainability.
Additionally, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) have shown negative trends, contributing to a perception of elevated risk when compared to its historical valuation levels. Over the last year, profits have declined by approximately 15%, further underscoring the financial pressures faced by the company.
Long-Term Performance and Shareholding
Over the past three years, Loyal Textile Mills has consistently underperformed the BSE500 index, with annual returns lagging behind the broader market benchmark. This persistent underperformance reflects challenges in maintaining competitive positioning within the Garments & Apparels sector.
The majority shareholding remains with the promoters, indicating concentrated ownership. This structure may influence strategic decisions and capital allocation within the company.
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Sector and Market Positioning
Loyal Textile Mills operates within the Garments & Apparels industry, a sector that has seen varied performance across companies. While the broader market indices maintain a generally positive trajectory, Loyal Textile Mills’ stock price and financial indicators suggest challenges in aligning with sector momentum.
The stock’s current trading below all major moving averages highlights a technical weakness, which may reflect investor caution or reassessment of the company’s near-term prospects.
Summary of Key Financial Indicators
The company’s net sales contraction of 31.4% in the latest quarter, combined with a negative PAT of Rs.-33.44 crore over six months, points to subdued revenue generation and profitability. The absence of dividend payments further reflects the company’s current financial stance.
Debt servicing capacity remains limited, with an EBIT to interest ratio of 0.33, and the average return on equity at 8.54% suggests modest returns on shareholder capital. The stock’s 52-week low of Rs.193.05 contrasts sharply with its 52-week high of Rs.393, marking a significant valuation adjustment over the year.
Market and Sector Comparison
While the Sensex trades near its 52-week high and small-cap stocks show slight gains, Loyal Textile Mills’ stock has declined sharply, reflecting a divergence from broader market trends. This underperformance over the last three years relative to the BSE500 index highlights ongoing challenges in the company’s market positioning.
Conclusion
Loyal Textile Mills’ stock reaching a 52-week low of Rs.193.05 underscores a period of financial strain and market pressure. The company’s declining sales, negative profitability metrics, and limited debt servicing capacity contribute to the current valuation levels. Despite the broader market’s relative strength, Loyal Textile Mills continues to face headwinds within its sector and financial framework.
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