Recent Price Movement and Market Context
On 8 December 2025, Nilkamal's stock opened with a gain of 3.12%, reaching an intraday high of Rs 1417.95. However, the momentum did not hold, and the stock declined to its low of Rs 1340.40 during the trading session, closing with a day change of -1.89%. This movement is part of a broader trend, as the stock has been on a losing streak for six consecutive days, accumulating a return of -4.63% over this period.
Nilkamal is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent downward pressure on the stock price. This contrasts with the broader market, where the Nifty index closed at 25,960.55, down 0.86% for the day but remains close to its 52-week high of 26,325.80, just 1.41% away. The Nifty is trading above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend in the broader market.
Performance Relative to Benchmarks
Over the past year, Nilkamal's stock has recorded a return of -29.43%, significantly underperforming the Sensex, which posted a positive return of 4.15% during the same period. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index in each of the previous three annual periods. The consistent divergence from benchmark indices highlights challenges in the company’s market valuation and investor sentiment.
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Financial Metrics and Growth Trends
Nilkamal’s long-term growth metrics show net sales expanding at an annual rate of 13.27% over the last five years, while operating profit has grown at a rate of 6.60% annually during the same period. These figures suggest moderate growth in revenue and profitability, though the pace of operating profit growth is notably slower than sales growth.
In the half-yearly financials, the company’s debtors turnover ratio stands at 0.67 times, which is relatively low and may indicate slower collection of receivables. The debt-to-equity ratio is reported at 1.32 times, reflecting a higher reliance on debt financing compared to equity. Despite this, Nilkamal maintains a low Debt to EBITDA ratio of 1.29 times, signalling a capacity to service its debt obligations effectively.
Valuation and Profitability Indicators
The company’s return on capital employed (ROCE) is recorded at 8.2%, which, combined with an enterprise value to capital employed ratio of 1.3, points to an attractive valuation relative to its capital base. The stock is trading at a discount compared to the average historical valuations of its peers in the diversified consumer products sector.
Profit figures over the past year show a decline of 9.7%, aligning with the downward trend in the stock price. This contraction in profitability adds to the subdued market performance and valuation pressures.
Shareholding and Market Capitalisation
Nilkamal’s majority shareholding rests with promoters, which often provides a degree of stability in ownership structure. The company’s market capitalisation grade is noted as 3, reflecting its standing within the large-cap segment of the market.
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Sector and Market Environment
Nilkamal operates within the diversified consumer products sector, which has experienced mixed performance in recent months. The broader market segments, including small caps, have seen declines, with the Nifty Small Cap 100 index down by 2.61%. Despite this, the Nifty index maintains a bullish posture, trading above key moving averages, which contrasts with Nilkamal’s current trading below all major moving averages.
The divergence between Nilkamal’s stock performance and the broader market indices highlights sector-specific and company-specific factors influencing investor sentiment and valuation.
Summary of Key Price and Performance Data
Nilkamal’s 52-week high price is Rs 2020, a level substantially above the current trading price near Rs 1340.40. The stock’s recent six-day decline and the cumulative negative return of 4.63% during this period underscore the ongoing pressure on the share price. The day’s trading session showed volatility, with an opening gap up of 3.12% followed by a retreat to the session low.
In comparison, the Nifty index’s proximity to its 52-week high and its positive technical indicators suggest a more favourable environment for the broader market, contrasting with Nilkamal’s subdued performance.
Conclusion
Nilkamal’s fall to a 52-week low reflects a combination of factors including subdued profitability trends, valuation pressures, and relative underperformance against benchmark indices. The stock’s position below all major moving averages and its recent consecutive declines indicate a challenging period for the company’s share price within the diversified consumer products sector. While the broader market shows signs of resilience, Nilkamal’s current metrics and price action highlight the complexities faced by the stock in the prevailing market environment.
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