Recent Price Movements and Market Context
On 3 December 2025, Mahalaxmi Fabric Mills recorded a closing price of Rs.26.1, the lowest level since its listing. This price point represents a continuation of a downward trend, with the stock falling by 0.80% on the day, compared to the Sensex’s decline of 0.24%. Over the past three days, the stock has registered a cumulative return of -3.3%, underperforming its sector by 0.48% on the day.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent weakness in price momentum. This technical positioning underscores the challenges faced by Mahalaxmi Fabric Mills in regaining investor confidence amid broader market fluctuations.
Comparative Performance Over Various Timeframes
Examining Mahalaxmi Fabric Mills’ returns relative to the benchmark Sensex reveals a stark contrast. Over the last one year, the stock has recorded a return of -47.31%, while the Sensex has shown a positive return of 5.06%. Year-to-date figures mirror this trend, with the stock down by 47.47% against the Sensex’s 8.70% gain.
Shorter-term performance also highlights the stock’s challenges. In the past month, Mahalaxmi Fabric Mills has declined by 11.19%, whereas the Sensex has advanced by 1.14%. Over three months, the stock’s return stands at -9.71%, contrasting with the Sensex’s 5.42% rise. The one-week performance shows a fall of 2.48% for the stock compared to a 0.79% decrease in the Sensex.
Longer-term data further emphasises the stock’s subdued trajectory. Over three, five, and ten years, Mahalaxmi Fabric Mills has not registered any appreciable gains, remaining flat, while the Sensex has delivered returns of 35.10%, 90.30%, and 228.10% respectively over the same periods.
Patience pays off here! This Micro Cap from Fertilizers sector has delivered steady gains quarter after quarter. Now proudly part of our Reliable Performers list.
- - New Reliable Performer
- - Steady quarterly gains
- - Fertilizers consistency
Financial Metrics Reflecting Company Performance
Mahalaxmi Fabric Mills’ financial indicators reveal pressures on profitability and growth. The company’s net sales for the latest quarter stood at Rs.31.62 crores, showing a decline of 13.9% compared to the average of the previous four quarters. The profit after tax (PAT) for the nine-month period ending September 2025 was Rs.2.14 crores, reflecting a contraction of 54.45% year-on-year.
Earnings per share (EPS) for the quarter reached a low of Rs.-3.20, indicating losses at the shareholder level. Operating profit trends over the past five years have shown a negative compound annual growth rate of 19.85%, signalling challenges in sustaining operational profitability.
The company’s ability to service its debt is also under strain, with an average EBIT to interest coverage ratio of 0.71, which is below the threshold generally considered comfortable for debt servicing. Return on capital employed (ROCE) has averaged at 0%, highlighting limited efficiency in generating returns from invested capital.
Risk Profile and Valuation Considerations
The stock’s valuation metrics suggest elevated risk relative to its historical averages. Over the past year, Mahalaxmi Fabric Mills has experienced a profit decline of approximately 220%, coinciding with its substantial share price reduction. This combination of falling profits and share price pressures contributes to a cautious market assessment of the company’s current standing.
In comparison to the broader BSE500 index, Mahalaxmi Fabric Mills has underperformed across multiple time horizons, including the last three months, one year, and three years. This underperformance reflects both sector-specific and company-specific factors influencing investor sentiment and valuation.
Mahalaxmi Fabric Mills or something better? Our SwitchER feature analyzes this micro-cap Garments & Apparels stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Shareholding and Sectoral Context
Mahalaxmi Fabric Mills operates within the Garments & Apparels industry, a sector that has faced varied market conditions in recent years. The company’s majority shareholding is held by promoters, indicating concentrated ownership. This structure can influence strategic decisions and capital allocation priorities.
Despite the sector’s overall dynamics, Mahalaxmi Fabric Mills’ stock performance and financial results have not aligned with broader market gains, as evidenced by its relative underperformance against key indices and sector benchmarks.
Summary of Current Position
The stock’s fall to an all-time low of Rs.26.1 encapsulates a period of sustained financial and market challenges for Mahalaxmi Fabric Mills. With returns significantly trailing benchmark indices and key financial metrics reflecting contraction in sales, profits, and capital efficiency, the company’s current valuation and market standing remain subdued.
Investors and market participants will continue to monitor the stock’s trajectory within the context of sectoral trends and company-specific developments.
Get 1 year of Weekly Picks FREE when you subscribe to MojoOne. Offer ends soon. Start Saving Now →
