Recent Price Movement and Market Context
On 4 Feb 2026, Nivaka Fashions Ltd’s share price touched Rs.2.29, the lowest level in the past year, representing a notable drop from its 52-week high of Rs.5.37. The stock has declined by 0.41% on the day, underperforming the Garments & Apparels sector by 1.48%. Over the last three trading sessions, the stock has consecutively fallen, delivering a cumulative return of -2.04% during this period.
Technical indicators show the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex opened lower at 83,252.06, down 0.58%, but is currently trading near 83,669.82, just 2.98% shy of its 52-week high of 86,159.02. The Sensex itself is positioned below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed market signals.
Financial Performance and Fundamental Assessment
Nivaka Fashions Ltd’s financial metrics continue to reflect subdued profitability and operational strain. The company reported flat quarterly results for September 2025, with PBDIT at a negative Rs.0.40 crore and PBT less other income at a loss of Rs.0.60 crore. Earnings per share (EPS) for the quarter stood at a low of Rs.-0.06, underscoring the limited earnings generation capacity.
Over the past year, the company’s profits have declined by 8%, while the stock price has fallen by 31.62%, significantly underperforming the Sensex’s positive 6.51% return over the same period. This trend extends over the last three years, with consistent underperformance against the BSE500 index, highlighting ongoing challenges in delivering shareholder value.
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Credit Metrics and Profitability Concerns
The company’s ability to service its debt remains weak, with an average EBIT to interest ratio of -0.29, indicating insufficient earnings before interest and taxes to cover interest expenses. This metric points to financial stress and heightened risk in meeting debt obligations.
Return on equity (ROE) averages at a modest 1.81%, reflecting low profitability relative to shareholders’ funds. Such a figure suggests limited efficiency in generating returns from invested capital, which may weigh on investor confidence and valuation.
Additionally, the company’s EBITDA remains negative, contributing to the perception of elevated risk compared to its historical valuation averages. This negative EBITDA status further emphasises the challenges in achieving operational profitability.
Shareholding Pattern and Market Position
The majority of Nivaka Fashions Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The stock’s market capitalisation grade stands at 4, indicating a relatively modest market cap within its sector.
Its Mojo Score, a comprehensive measure of stock quality and risk, is currently at 12.0, with a Mojo Grade of Strong Sell. This represents a downgrade from the previous Sell rating as of 29 Dec 2025, reflecting deteriorating fundamentals and market sentiment.
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Comparative Performance and Sectoral Context
Within the Garments & Apparels sector, Nivaka Fashions Ltd’s performance has lagged behind peers and the broader market indices. While the Sensex has maintained a positive trajectory over the past year, the stock’s 31.62% decline highlights a divergence from sectoral and market trends.
The stock’s consistent underperformance over multiple annual periods against the BSE500 index further underscores the challenges faced in regaining momentum or aligning with broader market gains.
Despite the sector’s overall dynamics, Nivaka Fashions Ltd’s share price remains significantly below its 52-week high, reflecting persistent downward pressure and subdued investor sentiment.
Summary of Key Metrics
To encapsulate, the stock’s current valuation at Rs.2.29 is its lowest in a year, with a negative trend across multiple technical and fundamental indicators. The company’s financial results reveal losses at the operating and pre-tax levels, low return on equity, and weak debt servicing capacity. These factors collectively contribute to the stock’s Strong Sell rating and subdued market performance.
While the broader market shows signs of resilience, Nivaka Fashions Ltd’s share price trajectory and financial metrics indicate ongoing challenges in reversing the downtrend.
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