Stock Price Movement and Market Context
On the day of the new low, Nivaka Fashions Ltd’s share price fell by 4.74%, underperforming its sector by 5.67%. The stock is trading below all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. This contrasts with the broader market, where the Sensex opened sharply lower by 772.19 points and closed down 275.97 points at 82,626.76, a decline of 1.25%. Despite this, the Sensex remains 4.27% below its 52-week high of 86,159.02, with its 50-day moving average still above the 200-day average, indicating some underlying market resilience.
Performance Over the Past Year
Over the last 12 months, Nivaka Fashions Ltd has delivered a negative return of 48.58%, a stark contrast to the Sensex’s positive 8.52% gain over the same period. The stock’s 52-week high was Rs.5.37, highlighting the steep decline to the current low of Rs.1.81. This performance places the company well below the broader market and its sector peers, reflecting ongoing challenges in maintaining investor confidence and operational stability.
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Financial Health and Profitability Metrics
Nivaka Fashions Ltd’s financial indicators reveal ongoing difficulties. The company has reported operating losses, contributing to a weak long-term fundamental strength assessment. Its ability to service debt remains constrained, with an average EBIT to interest ratio of -0.34, indicating that earnings before interest and tax are insufficient to cover interest expenses. This ratio is a critical measure of financial stability and suggests heightened risk in meeting debt obligations.
Profitability metrics further underscore the challenges faced by the company. The average Return on Equity (ROE) stands at a modest 1.81%, reflecting limited profitability generated from shareholders’ funds. Additionally, the company has experienced a 52% decline in profits over the past year, aligning with the negative stock returns and signalling pressure on earnings quality.
Valuation and Risk Profile
The stock is considered risky relative to its historical valuation averages. Its negative EBITDA status adds to concerns about cash flow generation and operational sustainability. Over the past three years, Nivaka Fashions Ltd has consistently underperformed the BSE500 index, both in the near term and long term, reinforcing the subdued market sentiment surrounding the company.
Shareholding Pattern and Market Position
The majority of shares are held by non-institutional investors, which may contribute to lower liquidity and higher volatility. The company operates within the Garments & Apparels sector, which has seen mixed performance amid changing consumer trends and competitive pressures. Nivaka Fashions Ltd’s market capitalisation grade is rated 4, indicating a relatively small market cap compared to larger peers in the sector.
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Recent Quarterly Results
The company reported flat results for the quarter ending December 2025, indicating no significant improvement in revenue or profitability. This stagnation in financial performance has contributed to the continued pressure on the stock price and investor sentiment.
Mojo Score and Rating Update
MarketsMOJO assigns Nivaka Fashions Ltd a Mojo Score of 12.0, categorising it as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 29 Dec 2025, reflecting deteriorating fundamentals and increased risk factors. The downgrade highlights concerns over the company’s financial health and market performance, reinforcing the cautious stance reflected in the stock’s recent price action.
Summary of Key Metrics
To summarise, Nivaka Fashions Ltd’s stock has declined to Rs.1.81, its lowest level in 52 weeks and all time. The stock’s performance over the past year has been significantly weaker than the broader market, with a near 50% loss in value and a corresponding drop in profits. Financial ratios indicate weak debt servicing capacity and low profitability, while the stock trades below all major moving averages. The company’s shareholding is predominantly non-institutional, and recent quarterly results have shown no material improvement.
These factors collectively explain the stock’s current valuation and market position, underscoring the challenges faced by Nivaka Fashions Ltd in the current economic and sectoral environment.
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