Recent Price Movement and Market Context
On 21 Nov 2025, Nitco’s stock price reached an intraday low of Rs.87.2, representing a fall of 2.62% during the trading session. This decline contributed to a two-day consecutive loss, with the stock registering a cumulative return of -4.75% over this period. The day’s performance also showed underperformance relative to its sector, with Nitco lagging by 1.94% compared to the diversified consumer products sector.
Notably, Nitco is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum. This contrasts with the broader market, where the Sensex opened lower at 85,347.40 points, down 0.33%, but remained close to its 52-week high of 85,801.70, just 0.45% away. The Sensex is currently trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish trend in the wider market.
Long-Term Performance and Valuation Concerns
Over the last twelve months, Nitco’s stock has recorded a return of -24.69%, a stark contrast to the Sensex’s positive return of 10.71% and the BSE500’s 8.97% gain. This underperformance highlights the challenges faced by the company relative to the broader market and its sector peers.
The stock’s 52-week high was Rs.164, underscoring the extent of the decline to the current low of Rs.87.2. This represents a drop of nearly 47% from its peak price within the last year.
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Financial Metrics and Debt Position
Nitco’s financial profile reveals several areas of concern. The company has reported operating losses, which have contributed to a weak long-term fundamental strength. Over the past five years, operating profit has declined at an annual rate of approximately 13.82%, indicating challenges in sustaining profitability.
Additionally, the company’s ability to service its debt is constrained, with a Debt to EBITDA ratio of -1.00 times. This negative ratio suggests that earnings before interest, taxes, depreciation, and amortisation have not been sufficient to cover debt obligations, raising questions about financial stability.
Shareholding and Market Pressure
A significant factor adding downward pressure on Nitco’s stock price is the high proportion of promoter shares that are pledged. Currently, 87.75% of promoter holdings are pledged, which can exacerbate price volatility, especially in declining markets. This situation often leads to increased selling pressure as lenders may seek to liquidate pledged shares in adverse conditions.
Profitability and Growth Trends
Despite the stock’s negative price trajectory, Nitco’s profits have shown some positive movement. Over the past year, profits have risen by 24.8%, a notable contrast to the stock’s return of -24.69%. This divergence suggests that the market valuation may be reflecting concerns beyond immediate profitability.
In the latest six-month period, Nitco reported net sales of Rs.257.92 crores, which grew by 89.33%. The quarterly profit after tax (PAT) stood at Rs.1.00 crore, representing a growth of 102.1% compared to the previous four-quarter average. These figures indicate some operational improvements in recent quarters, although they have not yet translated into positive stock price momentum.
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Sector and Industry Positioning
Nitco operates within the diversified consumer products sector, which has experienced mixed performance in recent months. While the broader market indices maintain a generally positive trend, Nitco’s stock has not aligned with this pattern, reflecting company-specific factors that have influenced investor sentiment.
The stock’s current trading below all major moving averages further emphasises the prevailing downward trend, suggesting that the market is yet to incorporate recent improvements in sales and profitability into the share price.
Summary of Key Price and Performance Indicators
To summarise, Nitco’s stock has reached a 52-week low of Rs.87.2, down from a high of Rs.164 within the last year. The stock has declined by 4.75% over the past two trading days and underperformed its sector by nearly 2% today. Its long-term financial indicators show operating losses and a challenging debt servicing capacity, while promoter share pledging remains elevated at 87.75%. Despite these factors, recent sales and profit growth figures indicate some operational progress.
These elements collectively provide a comprehensive view of Nitco’s current market position and the factors influencing its stock price trajectory.
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