Nivaka Fashions Ltd Stock Falls to 52-Week Low of Rs.2.18

Stock Price Movement and Market Context

On 5 Feb 2026, Nivaka Fashions Ltd’s share price touched Rs.2.18, the lowest level in the past year, representing a sharp fall from its 52-week high of Rs.5.37. Despite outperforming its sector by 4.13% on the day, the stock remains entrenched in a downtrend, trading below all key moving averages including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the sustained bearish sentiment surrounding the stock.

The broader market, represented by the Sensex, opened flat but declined by 285.74 points (-0.41%) to close at 83,471.80, remaining 3.22% below its 52-week high of 86,159.02. While the Sensex trades below its 50-day moving average, the 50DMA itself is positioned above the 200DMA, indicating a mixed technical outlook for the benchmark index.

Financial Performance and Profitability Metrics

Nivaka Fashions Ltd’s financial results have reflected subdued profitability and operational strain. The company reported a PBDIT (quarterly) of Rs.-0.40 crore and a PBT less other income of Rs.-0.60 crore, both representing the lowest quarterly figures recorded recently. Earnings per share (EPS) also declined to Rs.-0.06, signalling ongoing losses at the net profit level.

The company’s average Return on Equity (ROE) stands at a modest 1.81%, indicating limited profitability generated from shareholders’ funds. Additionally, the EBIT to interest coverage ratio averages at -0.29, highlighting difficulties in servicing debt obligations effectively. These metrics collectively point to weak long-term fundamental strength and financial stress.

Performance Relative to Benchmarks

Over the past year, Nivaka Fashions Ltd’s stock has delivered a negative return of -37.11%, substantially underperforming the Sensex, which posted a positive return of 6.63% over the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index across the previous three annual periods. The company’s profits have also declined by 8% in the last year, further emphasising the challenges faced.

Valuation and Risk Considerations

The stock is currently trading at valuations considered risky relative to its historical averages. The negative EBITDA and ongoing losses contribute to a cautious outlook on the company’s financial stability. Market participants have noted the stock’s deteriorating fundamentals, which have led to a downgrade in its Mojo Grade from Sell to Strong Sell as of 29 Dec 2025, with a current Mojo Score of 12.0. The Market Cap Grade remains low at 4, reflecting limited market capitalisation strength.

Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics. The stock’s day change today was -3.06%, continuing the trend of price erosion over recent sessions, although it did register a gain following three consecutive days of decline.

Sector and Industry Positioning

Nivaka Fashions Ltd operates within the Garments & Apparels sector, which has seen mixed performance amid broader economic conditions. While the sector itself has faced headwinds, Nivaka’s relative underperformance compared to peers and the benchmark indices highlights company-specific challenges. The stock’s trading below all major moving averages contrasts with the sector’s overall trend, indicating a divergence that may be attributed to the company’s financial metrics and market sentiment.

Summary of Key Financial Indicators

The company’s quarterly financials reveal persistent losses with PBDIT and PBT figures in negative territory. The EPS at Rs.-0.06 further confirms the lack of profitability. The weak EBIT to interest coverage ratio of -0.29 signals challenges in meeting interest obligations, while the low ROE of 1.81% reflects limited returns on equity capital. These factors collectively contribute to the stock’s current valuation and market perception.

Despite a brief uptick following a three-day decline, the stock remains below all significant moving averages, indicating that the downtrend is intact. The 52-week low of Rs.2.18 represents a critical price point, underscoring the stock’s vulnerability in the current market environment.

Market Capitalisation and Shareholding Pattern

Nivaka Fashions Ltd’s market capitalisation grade is rated at 4, suggesting a relatively small market cap within its sector. The majority of shares are held by non-institutional investors, which may affect trading volumes and price stability. This ownership structure can sometimes lead to increased volatility, especially in a stock experiencing downward price pressure.

Conclusion

The stock of Nivaka Fashions Ltd has reached a significant 52-week low of Rs.2.18, reflecting ongoing financial and market challenges. The company’s weak profitability metrics, negative returns, and underperformance relative to benchmarks have contributed to a cautious market stance. Trading below all major moving averages and with a downgraded Mojo Grade of Strong Sell, the stock remains under pressure amid a broader market that, while mixed, has shown resilience compared to Nivaka’s performance.

Investors and market watchers will note the detailed financial indicators and relative valuation risks that have shaped the stock’s trajectory over the past year. The company’s position within the Garments & Apparels sector and its ownership profile add further context to its current market standing.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →