Nilkamal Stock Falls to 52-Week Low of Rs.1471 Amidst Market Pressure

Recent Price Movement and Market Context

On 21 Nov 2025, Nilkamal's share price touched Rs.1471, the lowest level recorded in the past year. The stock has been on a downward trajectory for three consecutive days, resulting in a cumulative return of -0.86% over this period. Despite this, Nilkamal marginally outperformed its sector by 0.91% on the day the new low was hit.

In comparison, the Sensex opened lower at 85,347.40, down by 285.28 points or -0.33%, and was trading at 85,393.92, reflecting a -0.28% change. The benchmark index remains close to its 52-week high of 85,801.70, just 0.48% away, and is positioned above its 50-day and 200-day moving averages, indicating a generally bullish market environment.

Nilkamal, however, is trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a subdued momentum relative to the broader market and its sector peers.

Long-Term Performance and Financial Metrics

Over the last year, Nilkamal's stock has recorded a return of -19.24%, underperforming the Sensex, which has shown a positive return of 10.71% during the same period. The stock’s 52-week high was Rs.2000, highlighting the extent of the recent decline.

Examining the company’s financial growth, net sales have shown an annual growth rate of 13.27% over the past five years, while operating profit has grown at a rate of 6.60% annually. These figures suggest moderate expansion but at a pace that may not have met market expectations for a diversified consumer products firm.

Recent Financial Ratios and Operational Indicators

In the half-year period ending September 2025, Nilkamal's debtors turnover ratio stood at 0.67 times, which is relatively low and may indicate slower collection of receivables. The debt-to-equity ratio was recorded at 1.32 times, reflecting a higher reliance on debt financing compared to equity.

Despite these figures, the company maintains a low Debt to EBITDA ratio of 1.29 times, suggesting a manageable level of debt relative to earnings before interest, taxes, depreciation, and amortisation. This ratio points to a capacity to service debt obligations effectively.

Return on Capital Employed (ROCE) is reported at 8.2%, accompanied by an enterprise value to capital employed ratio of 1.3, which indicates an attractive valuation relative to the capital invested in the business. The stock is trading at a discount compared to the average historical valuations of its peers within the sector.

Comparative Performance and Shareholding

Nilkamal’s performance over the last three years, one year, and three months has been below that of the BSE500 index, signalling challenges in maintaining competitive returns over multiple time frames. Profit figures for the past year show a decline of 9.7%, aligning with the downward trend in stock price.

The majority shareholding remains with the promoters, indicating concentrated ownership and potential influence over company decisions.

Summary of Current Position

Nilkamal’s recent fall to Rs.1471 marks a significant low point in its share price over the past year. The stock’s position below all major moving averages contrasts with the broader market’s relatively stable and bullish stance. Financial metrics reveal moderate growth in sales and operating profit over five years, alongside some pressure on profitability and returns in the recent year.

Debt levels, while elevated in terms of debt-to-equity, remain manageable when viewed against EBITDA, and valuation metrics suggest the stock is trading at a discount relative to sector peers. The company’s concentrated promoter ownership continues to be a notable feature of its shareholding structure.

Overall, Nilkamal’s current market and financial data reflect a period of subdued performance within a generally positive market environment.

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