Stock Price Movement and Market Context
On the trading day, LWS Knitwear Ltd’s share price fell by 4.46%, closing at Rs.14.5, the lowest level in the past year. This decline followed two consecutive days of gains, signalling a reversal in short-term momentum. The stock underperformed the Trading & Distributors sector by 4.62%, indicating relative weakness within its industry group.
Technical indicators show the stock trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad-based weakness across multiple timeframes suggests a persistent bearish trend.
In contrast, the Sensex index opened flat but traded slightly lower by 0.08% at 84,977.32 points, remaining close to its 52-week high of 86,159.02, just 1.39% away. The Sensex’s position above its 50-day and 200-day moving averages reflects a generally bullish market environment, highlighting the divergence between LWS Knitwear’s performance and the broader market.
Long-Term and Recent Performance Analysis
Over the past year, LWS Knitwear Ltd’s stock has delivered a negative return of 33.33%, significantly lagging behind the Sensex’s positive 7.97% gain during the same period. This underperformance extends beyond the last year, with the stock also trailing the BSE500 index over the last three years, one year, and three months.
The stock’s 52-week high was Rs.31.39, indicating a steep decline of more than 53% from that peak to the current 52-week low. This substantial drop underscores the challenges faced by the company in maintaining investor confidence and market valuation.
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Financial Metrics and Fundamental Assessment
LWS Knitwear Ltd’s financial profile reveals several areas of concern. The company’s long-term fundamental strength is considered weak, with an average Return on Capital Employed (ROCE) of 7.21%. This level indicates limited efficiency in generating returns from its capital base compared to industry standards.
Debt servicing capacity is another point of caution. The company’s Debt to EBITDA ratio stands at 5.96 times, signalling a relatively high leverage position that could constrain financial flexibility. Additionally, the Debtors Turnover Ratio for the half-year period is low at 2.47 times, suggesting slower collection cycles and potential working capital pressures.
Despite these challenges, the company’s valuation metrics present a contrasting picture. With a ROCE of 10.8% and an Enterprise Value to Capital Employed ratio of 0.8, LWS Knitwear is trading at a valuation discount relative to its peers’ historical averages. This valuation gap reflects market caution but also indicates that the stock is priced attractively on certain financial parameters.
Profitability trends over the past year show a 43.6% increase in profits, which contrasts with the negative stock returns. This divergence suggests that while earnings have improved, market sentiment and other factors have weighed on the share price.
Shareholding and Market Grade
The majority shareholding in LWS Knitwear Ltd is held by promoters, maintaining a stable ownership structure. The company’s Mojo Score currently stands at 26.0, with a Mojo Grade of Strong Sell as of 19 Dec 2025, downgraded from a Sell rating. The Market Cap Grade is 4, reflecting the company’s relative size and market capitalisation within its sector.
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Summary of Key Concerns and Market Position
The stock’s fall to Rs.14.5, its lowest level in 52 weeks, reflects a combination of subdued financial performance, elevated leverage, and relative underperformance against broader market indices. While the company has shown profit growth, the market’s response has been cautious, as evidenced by the downgrade to a Strong Sell grade and the stock’s persistent trading below key moving averages.
In the context of a generally bullish Sensex, LWS Knitwear Ltd’s share price movement highlights sector-specific and company-specific factors that have contributed to its current valuation. The stock’s discount to peer valuations and improved profitability metrics provide a nuanced view of its market standing.
Overall, the stock’s 52-week low marks a significant milestone in its recent price trajectory, underscoring the challenges faced by the company in regaining upward momentum within a competitive and dynamic market environment.
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