Nitco Ltd Falls 4.88%: 3 Key Factors Driving the Weekly Decline

23 February 2026: Bearish Technical Momentum Emerges

Nitco Ltd began the week with a modest decline of 0.13%, closing at Rs.78.38 on 23 February 2026. Despite a slight intraday rise earlier in the day, technical indicators signalled a shift towards bearish momentum. The stock traded near its 52-week low of Rs.75.41, far below its 52-week high of Rs.164.00, highlighting significant volatility and weakness.

Technical analysis revealed the stock trading below key moving averages, with the Moving Average Convergence Divergence (MACD) and Bollinger Bands indicating sustained downward pressure. The weekly MACD remained bearish, and the Relative Strength Index (RSI) showed no bullish momentum, suggesting limited short-term recovery prospects. Volume trends also failed to support price advances, reinforcing the negative outlook.

In contrast, the Sensex gained 0.39% that day, closing at 36,817.86, underscoring Nitco’s underperformance relative to the broader market.

24-25 February 2026: Continued Downtrend Amid Market Volatility

The bearish trend intensified on 24 February, with Nitco’s stock falling 2.08% to Rs.76.75, accompanied by a volume decline to 6,651 shares. The Sensex also declined by 0.78%, closing at 36,530.09, reflecting broader market weakness. The stock’s decline was consistent with the negative technical outlook established earlier in the week.

On 25 February, the stock further declined by 1.68% to Rs.75.46 on lower volume of 4,696 shares, while the Sensex rebounded 0.41% to 36,679.75. Nitco’s underperformance persisted, trading below all major moving averages and signalling sustained selling pressure.

26 February 2026: New 52-Week Low Amid Weak Fundamentals

Nitco Ltd’s shares hit a fresh 52-week low of Rs.74.1 on 26 February 2026, closing at Rs.76.06, up 0.80% on the day but still reflecting a significant decline over the week. This marked a cumulative 28.40% drop over the past 12 months, contrasting sharply with the Sensex’s 10.51% gain in the same period.

Despite the Sensex opening higher by 142.71 points and closing up 0.21%, Nitco lagged behind its sector and broader market indices. The stock remained below all key moving averages, signalling persistent downward momentum. Fundamental metrics revealed operating losses, a negative return on capital employed (ROCE) of -25.2%, and a high Debt to EBITDA ratio of -1.00 times, underscoring financial challenges.

However, operationally, the company showed some resilience with net sales growing 58.96% over six months and profit after tax rising to Rs.40.63 crores for the nine-month period. These figures suggest pockets of strength amid broader weakness.

27 February 2026: Closing Near 52-Week Low Amid Market Pressure

The week concluded with Nitco Ltd’s stock closing at Rs.74.65, down 1.85% on 27 February 2026, just 0.74% above the 52-week low recorded the previous day. The stock underperformed the Nifty, which fell 1.25% to 25,178.65, and the Nifty Next 50 index, down 1.3%. Nitco’s shares remained below all major moving averages, confirming ongoing bearish momentum.

Over the past year, Nitco’s stock declined 28.01%, while the Sensex gained 8.95%, highlighting the stock’s significant underperformance. Despite this, the company reported improved profitability with a PAT of Rs.40.63 crores over nine months and net sales growth of 20.9% in the latest quarter, indicating some operational progress.

High promoter share pledging at 87.75% continues to exert downward pressure, as margin calls in volatile markets may force additional selling. The Mojo Score remains low at 23.0 with a Strong Sell grade, reflecting weak fundamentals and market sentiment.

Key Takeaways

Bearish Technical Momentum: The stock’s technical indicators deteriorated sharply this week, with moving averages, MACD, and Bollinger Bands signalling sustained downward pressure. The stock consistently traded below key averages, confirming a bearish trend.

New 52-Week Low and Underperformance: Nitco hit a fresh 52-week low of Rs.74.1, closing near this level on the final trading day. The stock’s 4.88% weekly decline significantly outpaced the Sensex’s 0.96% fall, highlighting relative weakness.

Fundamental Challenges Amid Operational Resilience: Despite weak fundamentals including negative ROCE (-25.2%) and high leverage (Debt to EBITDA -1.00), Nitco reported improved sales growth (+58.96% over six months) and profit after tax (Rs.40.63 crores over nine months). However, high promoter share pledging (87.75%) remains a risk factor.

Conclusion

Nitco Ltd’s share price performance this week reflects a continuation of bearish momentum amid fundamental headwinds and market pressures. The stock’s decline to a 52-week low and underperformance relative to the Sensex underscore ongoing challenges. While recent quarterly results show operational improvements, the negative technical setup and high promoter pledge ratio suggest caution. Investors should monitor for signs of stabilisation before considering a change in stance, as the current environment remains unfavourable for the stock.

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