NB Footwear Ltd. Stock Falls to 52-Week Low of Rs.6.23

Stock Performance and Market Context

On 28 Jan 2026, NB Footwear Ltd. closed at Rs.6.23, down 4.59% on the day, extending its losing streak to two consecutive sessions. Over this period, the stock has declined by 8.92%, underperforming the leather sector, which gained 4.51% on the same day. The stock’s current price is substantially below its 52-week high of Rs.17.91, representing a steep fall of approximately 65.2% from that peak.

Technical indicators reveal that NB Footwear is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex rose by 0.49% to 82,256.68, closing just 4.74% shy of its own 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day average, indicating a generally positive market trend, further highlighting NB Footwear’s relative weakness.

Financial and Fundamental Overview

NB Footwear’s financial metrics continue to reflect underlying difficulties. The company carries a negative book value, which points to weak long-term fundamental strength. Over the past five years, net sales growth has been negligible, with operating profit remaining flat at 0%. The company’s debt profile is notable, with an average debt-to-equity ratio of zero, indicating a high debt burden relative to equity, which adds to financial risk.

Profitability metrics also remain subdued. The company reported flat results in the September 2025 quarter, with earnings before interest, taxes, depreciation and amortisation (EBITDA) remaining negative. This negative EBITDA status contributes to the stock’s classification as risky when compared to its historical valuation averages.

Comparative Performance and Market Position

Over the last year, NB Footwear has delivered a total return of -64.52%, significantly lagging behind the Sensex’s positive 8.33% return over the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, underscoring a consistent trend of below-par performance.

Within its sector, NB Footwear’s performance contrasts sharply with the leather segment’s gains, which have been positive recently. This divergence highlights the company’s challenges in maintaining competitiveness and market share within the diversified consumer products industry.

Shareholding and Market Sentiment

The majority of NB Footwear’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell as of 7 Apr 2025, an upgrade from the previous Sell rating. This grading reflects the stock’s current risk profile and fundamental weaknesses.

Summary of Key Concerns

NB Footwear’s current valuation and market performance are influenced by several factors. The negative book value and flat sales growth over the past five years indicate limited expansion and value creation. The company’s negative EBITDA status and high debt levels contribute to its risk profile, while the stock’s consistent underperformance relative to sector peers and market benchmarks further emphasises ongoing challenges.

Despite the broader market’s positive momentum, NB Footwear’s share price continues to trend downward, reflecting persistent headwinds. The stock’s trading below all major moving averages signals a lack of short- and medium-term price support, which has culminated in the fresh 52-week low of Rs.6.23.

Market Environment and Sector Dynamics

The diversified consumer products sector, particularly the leather segment, has shown resilience with recent gains of 4.51%. This sectoral strength contrasts with NB Footwear’s performance, suggesting company-specific factors are driving the stock’s decline rather than broader industry trends. The Sensex’s positive trajectory, led by mega-cap stocks, further highlights the divergence between NB Footwear and the overall market.

Conclusion

NB Footwear Ltd.’s fall to a 52-week low of Rs.6.23 marks a continuation of a challenging period for the company. The stock’s underperformance relative to sector and market indices, combined with weak financial metrics and a negative risk profile, underscores the difficulties faced by the company. While the broader market and sector have shown positive trends, NB Footwear remains on a downward trajectory, reflecting ongoing fundamental and valuation concerns.

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