Nivaka Fashions Ltd Drops 13.08%: 9 Key Factors Behind the Steep Decline

09 February 2026: Stock Hits 52-Week Low at Rs.2.04 Amid Market Gains

On Monday, Nivaka Fashions Ltd’s share price declined to Rs.2.04, marking a fresh 52-week low. This drop occurred despite the Sensex gaining 1.04% to close at 37,113.23, reflecting a divergence from the broader market’s positive momentum. The stock’s decline was part of a six-day losing streak, cumulatively shedding 16.73% prior to this day. Technical indicators showed the stock trading below all major moving averages, signalling sustained selling pressure. The company’s weak fundamentals, including a negative EBIT to interest ratio of -0.29 and low return on equity of 1.81%, contributed to the bearish sentiment.

10 February 2026: New 52-Week and All-Time Low at Rs.1.94

The downtrend intensified on Tuesday as the stock fell further to Rs.1.94, setting both a new 52-week and all-time low. This represented a 4.90% decline on the day, underperforming the Sensex’s modest 0.25% gain. The stock had now declined for seven consecutive sessions, losing 19.59% in that span. The company’s quarterly results released around this time showed negative PBDIT of Rs.-0.40 crore and PBT excluding other income of Rs.-0.60 crore, with EPS at a negative Rs.-0.06, reinforcing concerns about profitability and operational health. The Mojo Score remained low at 12.0 with a Strong Sell rating, reflecting deteriorated fundamentals.

11 February 2026: Further Decline to Rs.1.85 Despite Sector Resilience

On Wednesday, the stock touched Rs.1.85, another 52-week low, marking a 2.58% decline from the previous close. Interestingly, the stock marginally outperformed its sector by 2.62% on this day, though it remained deeply entrenched in a bearish phase. The Sensex was nearly flat, closing down 0.02%. The company’s financials remained subdued with flat quarterly results and continued negative earnings metrics. The downgrade to a Strong Sell rating by MarketsMOJO on 29 December 2025 remained in effect, underscoring the cautious outlook.

12 February 2026: Brief Rebound with 2.70% Gain Near All-Time Lows

Thursday saw a rare positive day for Nivaka Fashions Ltd, with the stock gaining 2.70% to close at Rs.1.90. This outperformance contrasted with the Sensex’s 0.46% decline, but the stock remained just 2.63% above its 52-week low. Despite this short-lived recovery, the stock continued to trade below all key moving averages, indicating persistent bearish momentum. The company’s financial profile remained weak, with negative EBITDA and a profit decline of 8% over the past year. The Mojo Score and Strong Sell rating remained unchanged, reflecting ongoing fundamental concerns.

13 February 2026: New 52-Week Low at Rs.1.81 Amid Broader Market Weakness

On the final trading day of the week, Nivaka Fashions Ltd’s stock fell sharply by 4.74% to Rs.1.81, setting a new 52-week and all-time low. This decline outpaced the Sensex’s 1.25% drop, highlighting the stock’s relative weakness. The stock’s year-to-date loss stood at approximately 66.3%, with the 52-week high at Rs.5.37 underscoring the steep decline. Technical indicators confirmed the stock’s position below all major moving averages, signalling continued downward pressure. The company’s EBIT to interest ratio worsened to -0.34, and profitability remained subdued with an average ROE of 1.81%. Negative EBITDA and a 52% profit decline over the past year further compounded concerns.

Weekly Price Performance: Nivaka Fashions Ltd vs Sensex

Key Takeaways

Persistent Downtrend: Nivaka Fashions Ltd’s stock declined for seven consecutive sessions, culminating in a 13.08% weekly loss, far exceeding the Sensex’s 0.54% decline. The stock consistently traded below all major moving averages, indicating sustained bearish momentum.

Financial Weakness: The company’s quarterly results revealed negative PBDIT and PBT, with EPS at a negative Rs.-0.06. Profitability metrics such as EBIT to interest ratio (-0.29 to -0.34) and ROE (1.81%) remain weak, signalling operational and financial challenges.

Valuation and Rating: MarketsMOJO assigned a Mojo Score of 12.0 and a Strong Sell rating, upgraded from Sell in late December 2025, reflecting deteriorated fundamentals and elevated risk.

Market and Sector Divergence: While the broader market and garments & apparels sector showed relative resilience, Nivaka Fashions Ltd underperformed both, highlighting company-specific issues.

Volatility and Liquidity: Majority shareholding by non-institutional investors may contribute to liquidity constraints and price volatility, further complicating the stock’s recovery prospects.

Conclusion

Nivaka Fashions Ltd’s share price performance during the week of 9 to 13 February 2026 underscores a continuation of a prolonged downtrend driven by weak financial results, poor profitability, and negative market sentiment. Despite occasional short-term gains, the stock remains entrenched near all-time lows, trading below all key technical levels. The company’s fundamental challenges, including negative earnings and limited debt servicing capacity, have been reflected in the Strong Sell rating and low Mojo Score. Relative to the broader market and sector, Nivaka Fashions Ltd’s underperformance highlights significant hurdles in regaining investor confidence and market valuation. The data suggests that the stock remains under pressure, with limited near-term catalysts for reversal.

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