On 19 Nov 2025, Loyal Textile Mills touched an intraday low of Rs.214, representing a 4.55% decline on the day. This marks the third consecutive day of losses for the stock, which has recorded a cumulative return of -12.97% over this period. The stock's current price is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum.
In contrast, the broader market has shown resilience. The Sensex opened flat but gained 353.07 points to close at 84,996.85, a 0.38% increase. The index remains close to its 52-week high of 85,290.06, trading above its 50-day and 200-day moving averages, supported by strong performances from mega-cap stocks. This divergence highlights the relative weakness of Loyal Textile Mills within the current market environment.
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Over the past year, Loyal Textile Mills has recorded a return of -39.53%, significantly underperforming the Sensex, which has delivered a 9.56% return over the same period. The stock's 52-week high was Rs.393, underscoring the extent of the decline to the current low. This performance is consistent with the company's financial indicators, which reflect ongoing challenges.
Financially, Loyal Textile Mills has reported operating losses, contributing to a weak long-term fundamental position. The company's ability to service its debt is constrained, with an average EBIT to interest ratio of 0.33, indicating limited earnings relative to interest obligations. Profitability metrics also show subdued returns, with an average Return on Equity of 8.54%, suggesting modest profit generation relative to shareholders' funds.
Recent quarterly results reveal subdued activity, with net sales at Rs.106.54 crore, the lowest in recent periods. The profit after tax (PAT) for the latest six months stands at a loss of Rs.33.44 crore, reflecting a decline of 36.55% compared to prior periods. Dividend payout ratio remains at zero, indicating no dividend distribution during this time frame.
The stock's valuation appears elevated relative to its historical averages, contributing to a perception of increased risk. Over the last year, profits have declined by approximately 15%, aligning with the negative stock returns. Additionally, Loyal Textile Mills has consistently underperformed the BSE500 index over the past three years, reinforcing its relative weakness within the broader market.
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Ownership of Loyal Textile Mills remains concentrated with promoters holding the majority stake. The company's sector classification is within Garments & Apparels, a segment that has experienced varied performance across different players. Despite the broader market's positive trajectory, Loyal Textile Mills continues to face headwinds as reflected in its stock price and financial metrics.
In summary, Loyal Textile Mills' stock has reached a significant 52-week low of Rs.214 amid a series of declines and financial indicators that point to ongoing pressures. The stock's performance contrasts with the broader market's gains, highlighting sector-specific and company-specific factors influencing its valuation. Investors and market participants observing this stock will note the persistent challenges reflected in its price and fundamentals.
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