Nivaka Fashions Ltd Falls 7.14%: 6 Key Factors Behind the Steep Decline

23 February 2026: All-Time Low Amid Prolonged Downtrend

On Monday, Nivaka Fashions Ltd’s stock price plunged 4.40% to close at Rs.1.74, marking an all-time low. This sharp decline contrasted with the Sensex’s 0.39% gain, underscoring the stock’s sustained underperformance. The stock traded near its 52-week low, reflecting persistent bearish momentum. The company’s financial health remains weak, with operating losses and a negative EBIT to interest coverage ratio of -0.34, signalling insufficient earnings to cover interest expenses. Profitability metrics remain subdued, with an average return on equity (ROE) of 1.81%, and a 52% decline in profits over the past year.

24 February 2026: New 52-Week and All-Time Low Recorded

The downward trend continued on Tuesday as the stock closed at Rs.1.66, establishing a fresh 52-week and all-time low. Despite a 4.60% drop, the stock marginally outperformed its sector by 1.32%. The Sensex, however, declined 0.78%, reflecting broader market weakness. The stock remains below all key moving averages, indicating sustained selling pressure. The company’s financial metrics continue to deteriorate, with negative EBITDA and shrinking profitability, further weighing on investor sentiment.

25 February 2026: Price Stabilises Near All-Time Low

On Wednesday, Nivaka Fashions Ltd’s share price remained unchanged at Rs.1.70, showing a modest 2.41% gain from the previous day’s close but still near its all-time low levels. The Sensex gained 0.41%, outperforming the stock. Despite the slight price stabilisation, the company’s fundamentals remain weak, with ongoing operating losses and a negative EBIT to interest ratio. The stock’s market capitalisation grade of 4 and majority non-institutional shareholding contribute to limited liquidity and trading activity.

26 February 2026: Fresh 52-Week Low Despite Modest Rebound

Thursday saw the stock hit a new 52-week and all-time low of Rs.1.64, despite a modest 0.59% gain on the day. This price represents a 69.5% decline from the 52-week high of Rs.5.37. The stock underperformed its sector by 3.49%, while the Sensex gained 0.17%, highlighting the stock’s relative weakness. Financially, the company continues to report operating losses and negative EBITDA, with profitability metrics remaining subdued. The downgrade to a Strong Sell rating by MarketsMOJO, with a Mojo Score of 12.0, reflects the deteriorating outlook and heightened risk profile.

27 February 2026: Week Closes Lower Amid Market Weakness

On Friday, Nivaka Fashions Ltd’s stock closed at Rs.1.69, down 1.17% on the day and 7.14% for the week. The Sensex declined 1.16%, but the stock’s weekly underperformance was significant. Trading volumes were low at 6,902 shares, indicating subdued investor interest. The stock remains below all major moving averages, signalling continued bearish momentum. The company’s financial challenges, including a 52% profit decline and weak debt servicing capacity, continue to weigh heavily on the stock’s valuation and market sentiment.

Daily Price Comparison: Nivaka Fashions Ltd vs Sensex

Key Takeaways

Persistent Downtrend: Nivaka Fashions Ltd’s stock price hit multiple all-time and 52-week lows this week, closing at Rs.1.69, down 7.14% for the week, significantly underperforming the Sensex’s 0.96% decline.

Financial Weakness: The company continues to report operating losses, negative EBITDA, and a poor EBIT to interest coverage ratio of -0.34, indicating weak debt servicing capacity. Profitability remains subdued with an average ROE of 1.81% and a 52% decline in profits over the past year.

Technical Indicators: The stock trades below all major moving averages (5, 20, 50, 100, 200 days), signalling sustained bearish momentum and lack of upward price catalysts.

Market Position: With a market capitalisation grade of 4 and majority non-institutional shareholding, liquidity and trading activity remain limited, contributing to volatility and price pressure.

Rating and Sentiment: MarketsMOJO has assigned a Strong Sell rating with a Mojo Score of 12.0, reflecting deteriorated fundamentals and heightened risk.

Sector and Benchmark Underperformance: The stock has underperformed the Sensex and its sector peers consistently over one, three, and five-year periods, highlighting ongoing challenges in regaining investor confidence and market share.

Conclusion

Nivaka Fashions Ltd’s share price decline this week to Rs.1.69, marking a 7.14% drop, underscores the company’s ongoing financial and operational challenges. Despite intermittent minor rebounds, the stock remains entrenched in a prolonged downtrend, trading below all key moving averages and hitting fresh all-time lows. Weak profitability, negative earnings coverage, and a deteriorated fundamental outlook have culminated in a Strong Sell rating by MarketsMOJO. The stock’s persistent underperformance relative to the Sensex and sector benchmarks over multiple time horizons highlights the severity of the company’s current position within the Garments & Apparels sector. Investors should note the continued risks reflected in the company’s financial metrics and market valuation as the stock remains under pressure amid subdued market sentiment.

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