Recent Price Movement and Market Context
The stock has been on a losing streak for the past four consecutive days, shedding approximately 14.94% in returns during this period. Today’s decline of 4.93% further accentuated the downtrend, with NB Footwear underperforming its sector by 8.93%. This contrasts sharply with the leather sector’s gain of 4.9% on the same day, highlighting the stock’s relative weakness within its industry group.
NB Footwear’s current trading price of Rs.6.55 is substantially lower than its 52-week high of Rs.17.91, reflecting a steep depreciation of over 63% from that peak. The stock is also trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum.
Broader Market Performance
On the broader market front, the Nifty index closed at 25,289.90, up 132.4 points or 0.53%, maintaining a position 4.28% below its own 52-week high of 26,373.20. While the Nifty trades below its 50-day moving average, the 50DMA remains above the 200DMA, indicating a mixed technical backdrop. Notably, all market capitalisation segments posted gains, with the Nifty Midcap 100 index leading with a 1.34% increase, underscoring the selective nature of market strength.
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Financial and Fundamental Overview
NB Footwear’s financial metrics reveal several areas of concern. The company currently holds a negative book value, indicating weak long-term fundamental strength. Over the past five years, net sales growth has been negligible, with operating profit remaining flat at 0% growth annually. This stagnation in core financial performance has contributed to the stock’s subdued market valuation.
Debt levels remain elevated, with the company classified as a high-debt entity despite an average debt-to-equity ratio of zero times, suggesting possible off-balance sheet liabilities or other financial complexities. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) are negative, further underscoring the financial strain.
Performance Relative to Benchmarks
Over the last year, NB Footwear has delivered a total return of -62.70%, a stark contrast to the Sensex’s positive return of 7.73% 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, reflecting persistent challenges in both the near and long term.
These comparative metrics highlight the stock’s relative underperformance within the broader market and its sector, despite the leather sector’s recent gains.
Shareholding Pattern and Market Perception
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, upgraded from a previous Sell rating on 7 April 2025. The Market Cap Grade is rated at 4, indicating a smaller market capitalisation relative to peers.
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Recent Quarterly Results
The company reported flat results in the quarter ended September 2025, with no significant improvement in sales or profitability. This lack of momentum in quarterly performance has contributed to the subdued investor sentiment and ongoing price pressure.
Technical Indicators and Trading Patterns
Technically, NB Footwear’s stock is entrenched in a bearish phase, trading below all major moving averages. This technical positioning suggests that the stock has yet to find a stable support level and remains vulnerable to further declines. The four-day consecutive fall and the sharp underperformance relative to the sector reinforce this view.
Summary of Key Metrics
To summarise, NB Footwear Ltd. is currently trading at Rs.6.55, its lowest level in 52 weeks, down from a high of Rs.17.91. The stock’s one-year return of -62.70% contrasts with the Sensex’s positive 7.73% return. The company’s financial profile is marked by negative book value, flat sales and operating profit growth over five years, negative EBITDA, and a high debt classification. The Mojo Grade of Strong Sell reflects these fundamental and technical weaknesses.
While the broader market and sector have shown resilience and gains, NB Footwear’s stock continues to face headwinds, as evidenced by its recent price action and financial metrics.
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