Stock Price Movement and Market Context
On the day the 52-week low was recorded, NB Footwear Ltd. outperformed its sector by 3.85%, despite the broader market environment showing signs of weakness. The Sensex, after opening flat with a marginal gain of 28.57 points, declined by 753.73 points to close at 81,582.21, a fall of 0.88%. The NIFTY REALTY index also hit a new 52-week low on the same day, indicating sectoral pressures in certain segments of the market.
NB Footwear’s stock price has been trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend. The stock had experienced four consecutive days of decline prior to a modest gain on the day it hit the new low, suggesting some short-term price stabilisation.
Long-Term Performance and Valuation Metrics
Over the past year, NB Footwear Ltd. has delivered a return of -61.81%, a stark contrast to the Sensex’s positive 6.60% return over the same period. The stock’s 52-week high was Rs.17.91, highlighting the extent of the decline from its peak. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the last three years, one year, and three months.
The company’s market capitalisation is graded at 4, reflecting its micro-cap status within the diversified consumer products sector. The Mojo Score assigned to NB Footwear Ltd. 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 underscores the stock’s current valuation challenges and fundamental concerns.
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Financial Health and Profitability Concerns
NB Footwear Ltd. exhibits a negative book value, indicating that its liabilities exceed its assets on the balance sheet. This situation contributes to a weak long-term fundamental strength assessment. The company’s net sales growth has been stagnant over the last five years, with an annual growth rate of 0%, and operating profit has similarly shown no improvement during this period.
Debt metrics reveal that NB Footwear is a high-debt company, with an average debt-to-equity ratio of 0 times, which suggests reliance on borrowings relative to shareholder equity. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) are negative, adding to the risk profile of the stock when compared to its historical valuation averages.
Recent Quarterly Results and Shareholding Pattern
The company reported flat financial results in the quarter ending September 2025, with no significant growth in revenues or profitability. This lack of momentum in quarterly performance aligns with the broader trend of subdued financial metrics over the medium term.
Majority shareholding in NB Footwear Ltd. is held by non-institutional investors, which may influence liquidity and trading dynamics in the stock. Institutional participation remains limited, reflecting the stock’s current market perception and fundamental challenges.
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Technical and Market Trend Analysis
The stock’s position below all major moving averages indicates a persistent downtrend, with no immediate technical support from short- or long-term averages. The recent modest gain following four days of consecutive declines may represent a short-term pause rather than a reversal in trend.
In comparison, the Sensex is trading below its 50-day moving average, though the 50-day average remains above the 200-day moving average, suggesting a mixed technical picture for the broader market. NB Footwear’s relative underperformance against the Sensex and its sector peers highlights the stock’s ongoing challenges in regaining investor confidence and market momentum.
Summary of Key Metrics
To summarise, NB Footwear Ltd. currently trades at Rs.6.5, its lowest level in 52 weeks, down from a high of Rs.17.91. The stock’s one-year return of -61.81% contrasts sharply with the Sensex’s positive 6.60% return. The company’s financial indicators, including negative book value, stagnant sales growth, negative EBITDA, and high debt levels, contribute to its Strong Sell Mojo Grade of 12.0.
These factors collectively illustrate the stock’s subdued performance and the challenges it faces within the diversified consumer products sector.
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