Nivaka Fashions Ltd Falls 2.15%: 6 Key Factors Driving the Week’s Decline

16 February: New 52-Week and All-Time Low at Rs.1.80

On Monday, Nivaka Fashions Ltd’s share price plunged to Rs.1.80, marking both a 52-week and all-time low. This represented a continuation of the stock’s prolonged downtrend, with the price now approximately 66.5% below its 52-week high of Rs.5.37. Despite a modest intraday gain of 2.15%, the stock closed sharply lower amid weak fundamentals. The broader Sensex, in contrast, closed 0.70% higher at 36,787.89, highlighting the stock’s relative underperformance.

Financially, the company continues to struggle with negative EBITDA and an average EBIT to interest ratio of -0.34, signalling difficulties in servicing debt. Profitability remains subdued with an average return on equity of 1.81%, and profits have declined by 52% over the past year. These metrics underpin the MarketsMOJO Mojo Grade downgrade to Strong Sell, reflecting heightened risk.

17 February: Slight Recovery on Increased Volume

The stock edged up to Rs.1.87, gaining 0.54% on increased volume of 46,318 shares, suggesting some short-term buying interest. However, this modest recovery was insufficient to reverse the prevailing downtrend. The Sensex continued its upward trajectory, closing 0.32% higher at 36,904.38. Despite the uptick, Nivaka Fashions remained below all key moving averages, indicating persistent technical weakness.

18 February: Resumption of Decline

On Wednesday, the stock reversed gains and closed at Rs.1.85, down 1.07%. The volume surged to 85,159 shares, reflecting increased selling pressure. The Sensex gained 0.43% to close at 37,062.35, further emphasising the stock’s divergence from broader market strength. The company’s flat December quarter results and ongoing operating losses continued to weigh on investor sentiment.

19 February: Fresh 52-Week Low at Rs.1.76 Amidst Continued Downtrend

The stock declined sharply by 4.86% to close at Rs.1.76, setting a new 52-week and all-time low. This marked the second consecutive day of significant losses, with cumulative declines of 4.28% over two sessions. Volume remained elevated at 48,786 shares. The Sensex, meanwhile, fell 1.45% to 36,523.88, reflecting broader market volatility. Despite the market weakness, Nivaka Fashions underperformed its sector by 2.17%, underscoring its relative fragility.

Technical indicators remained bearish, with the stock trading below all major moving averages. The company’s financial metrics continue to signal distress, including a negative EBIT to interest ratio and declining profitability. The downgrade to a Strong Sell rating by MarketsMOJO on 29 December 2025 remains in effect, reflecting the deteriorating outlook.

20 February: Further Decline to Rs.1.73 Despite Market Resilience

On the final trading day of the week, Nivaka Fashions Ltd’s stock fell to Rs.1.73, another 52-week low, despite the Sensex gaining 0.41% to close at 36,674.32. The stock outperformed its sector by 3.44% on the day but remained well below all key moving averages, signalling persistent downward momentum. Volume surged to 158,480 shares, indicating heightened trading activity amid the decline.

Financially, the company’s challenges persist with flat quarterly results, negative EBITDA, and a 52% decline in profits over the past year. The Mojo Score of 12.0 and Strong Sell grade reflect the elevated risk profile. The stock’s long-term underperformance relative to the Sensex and BSE500 index continues, with a one-year return of -45.67% versus the Sensex’s +9.35%.

Daily Price Comparison: Nivaka Fashions Ltd vs Sensex

Key Takeaways

Persistent Downtrend: Nivaka Fashions Ltd’s stock continued its downward trajectory, hitting multiple 52-week and all-time lows during the week, closing 2.15% lower overall despite a late-week bounce.

Underperformance vs Sensex: The stock’s weekly decline contrasts with the Sensex’s 0.39% gain, highlighting relative weakness amid broader market resilience.

Financial Struggles: Negative EBITDA, a poor EBIT to interest ratio of -0.34, and a 52% profit decline over the past year underscore ongoing operational challenges.

Technical Weakness: Trading below all major moving averages throughout the week signals sustained selling pressure and lack of upward momentum.

Market Sentiment: The Mojo Grade of Strong Sell and a low Mojo Score of 12.0 reflect cautious market sentiment and elevated risk.

Volume Trends: Increased volumes on down days suggest active selling, while brief upticks on recovery days indicate limited short-term buying interest.

Conclusion

The week ending 20 February 2026 was challenging for Nivaka Fashions Ltd, with the stock enduring fresh lows and continuing to underperform the broader market. Despite occasional intraday recoveries, the persistent negative financial indicators and technical weakness have kept the stock under pressure. The downgrade to a Strong Sell rating by MarketsMOJO and the company’s deteriorating profitability metrics reinforce the cautious outlook. Investors should note the stock’s sustained downtrend amid a generally resilient Sensex, reflecting company-specific challenges within the garments and apparels sector. Monitoring upcoming financial disclosures and market developments will be crucial to assess any potential turnaround.

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