Nivaka Fashions Ltd Stock Falls to 52-Week Low of Rs.2.34

Stock Price Movement and Market Context

On 2 Feb 2026, Nivaka Fashions Ltd’s share price reached Rs.2.34, the lowest level recorded in the past year. This represents a sharp fall from its 52-week high of Rs.5.37, reflecting a depreciation of over 56%. Despite the stock outperforming its sector by 1.86% on the day, the broader Garments & Apparels sector experienced a decline of 2.09%, while the Sensex opened lower by 167.26 points and traded at 80,398.91, down 0.4%.

The stock is currently trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained downward momentum. This technical positioning underscores the stock’s weak trend relative to both its sector and the broader market indices.

Financial Performance and Fundamental Assessment

Nivaka Fashions Ltd’s financial metrics continue to reflect a challenging operational environment. 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 negative Rs.0.60 crore. Earnings per share (EPS) for the quarter stood at a low of Rs.-0.06, indicating limited profitability.

Over the past year, the company’s profits have declined by 8%, while the stock price has fallen by 31.37%, significantly underperforming the Sensex, which posted a positive return of 3.77% over the same period. This underperformance extends over the last three years, with Nivaka Fashions consistently lagging behind the BSE500 benchmark.

Credit Metrics and Profitability Concerns

The company’s ability to service its debt remains weak, as reflected by an average EBIT to interest ratio of -0.29. This negative ratio indicates that earnings before interest and tax are insufficient to cover interest expenses, raising concerns about financial stability.

Return on equity (ROE) averages at a modest 1.81%, signalling low profitability relative to shareholders’ funds. Such a low ROE suggests that the company is generating limited returns on invested capital, which may weigh on investor confidence.

Valuation and Risk Profile

Nivaka Fashions Ltd is currently trading at valuations that are considered risky compared to its historical averages. The stock’s downward trajectory and negative EBITDA highlight the elevated risk profile. The majority of the company’s shares are held by non-institutional investors, which may contribute to lower liquidity and higher volatility.

Despite the stock’s recent outperformance relative to its sector on the day of the new low, the overall trend remains negative, with the company’s Mojo Score at 12.0 and a Mojo Grade of Strong Sell as of 29 Dec 2025, an upgrade from a previous Sell rating. The Market Cap Grade stands at 4, indicating a relatively small market capitalisation within its peer group.

Sector and Market Comparison

The Garments & Apparels sector has faced headwinds recently, with key indices such as the S&P BSE FMCG and NIFTY FMCG also hitting new 52-week lows on the same day. The Sensex is trading below its 50-day moving average, although the 50DMA remains above the 200DMA, indicating some underlying market resilience despite short-term weakness.

Within this context, Nivaka Fashions Ltd’s performance has been notably weaker, with its stock price and financial indicators lagging behind sector peers and broader market benchmarks.

Shareholding Pattern

The company’s shareholding is predominantly held by non-institutional investors, which may affect trading volumes and price stability. The absence of significant institutional backing could limit access to capital and strategic support during periods of financial stress.

Summary of Key Financial Metrics

To summarise, Nivaka Fashions Ltd’s key financial and market metrics as of early February 2026 are:

• 52-week low price: Rs.2.34
• 52-week high price: Rs.5.37
• One-year stock return: -31.37%
• Sensex one-year return: +3.77%
• EBIT to Interest ratio (average): -0.29
• Return on Equity (average): 1.81%
• Quarterly PBDIT: -Rs.0.40 crore
• Quarterly PBT less other income: -Rs.0.60 crore
• Quarterly EPS: -Rs.0.06
• Mojo Score: 12.0 (Strong Sell)
• Market Cap Grade: 4

These figures collectively illustrate the challenges faced by Nivaka Fashions Ltd in maintaining profitability and market valuation amid a subdued sectoral and macroeconomic environment.

Conclusion

The recent fall to a 52-week low at Rs.2.34 marks a continuation of a downward trend for Nivaka Fashions Ltd, reflecting persistent financial pressures and market headwinds. The company’s weak credit metrics, low profitability, and consistent underperformance relative to benchmarks underscore the difficulties it faces within the Garments & Apparels sector. While the stock’s technical indicators remain bearish, the broader market context and sectoral challenges provide additional layers of complexity to its current valuation and performance.

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