Stock Price Movement and Market Context
On 11 Feb 2026, Nivaka Fashions Ltd’s share price dropped by 2.58% to reach Rs.1.85, its lowest level in the past year and since listing. Despite this decline, the stock marginally outperformed its sector by 2.62% on the day, though it remains well below its 52-week high of Rs.5.37. The stock has experienced a seven-day consecutive fall prior to a slight gain today, yet it continues to trade beneath its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling a sustained bearish trend.
In contrast, the broader market has shown resilience. The Sensex opened flat and traded marginally lower by 0.02% at 84,261.16 points, remaining just 2.25% shy of its 52-week high of 86,159.02. The index has been on a three-week consecutive rise, gaining 3.34%, supported by bullish moving averages with the 50-day DMA above the 200-day DMA. This divergence highlights the relative underperformance of Nivaka Fashions within the current market environment.
Financial Performance and Fundamental Assessment
The company’s financial metrics continue to reflect challenges. Over the last year, Nivaka Fashions has delivered a negative return of 46.61%, starkly contrasting with the Sensex’s positive 10.44% gain over the same period. The stock’s underperformance extends beyond the short term, with returns lagging behind the BSE500 index over the past three years, one year, and three months.
Recent quarterly results for September 2025 reveal subdued profitability. The company reported a PBDIT (Profit Before Depreciation, Interest and Taxes) of Rs.-0.40 crore and a PBT (Profit Before Tax) excluding other income of Rs.-0.60 crore, both representing the lowest levels recorded. Earnings per share (EPS) also declined to Rs.-0.06, underscoring the limited earnings generation capacity.
Long-term fundamental strength remains weak, as reflected in the company’s financial ratios. The average EBIT to interest coverage ratio stands at -0.29, indicating difficulties in servicing debt obligations. Return on equity (ROE) averages a modest 1.81%, signalling low profitability relative to shareholders’ funds. These metrics contribute to the company’s current Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 29 Dec 2025, with a Mojo Score of 12.0.
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Valuation and Risk Considerations
The stock’s valuation profile remains elevated relative to its historical averages, contributing to its classification as a risky investment. Despite the negative returns, the company’s profits have declined by 8% over the past year, compounding concerns about earnings sustainability. The persistent negative EBITDA further emphasises the financial strain faced by the company.
Shareholding patterns reveal that the majority of shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The company’s market capitalisation grade is rated at 4, reflecting its micro-cap status within the Garments & Apparels sector.
Sectoral and Industry Context
Nivaka Fashions operates within the Garments & Apparels industry, a sector that has experienced mixed performance amid fluctuating consumer demand and supply chain pressures. While some peers have demonstrated recovery and growth, Nivaka Fashions’ stock price trajectory and financial indicators suggest it has faced comparatively greater headwinds.
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Summary of Key Metrics
To summarise, Nivaka Fashions Ltd’s stock has reached a new low of Rs.1.85, reflecting a 46.61% decline over the past year. The company’s financial health is characterised by weak profitability, negative earnings, and limited debt servicing capacity. The stock trades below all major moving averages, indicating a sustained downtrend despite a minor rebound after a week of losses. The broader market and sector have shown relative strength, underscoring the stock’s underperformance.
These factors collectively contribute to the company’s current Strong Sell Mojo Grade and highlight the challenges faced by Nivaka Fashions in regaining market confidence and financial stability.
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