Nivaka Fashions Ltd Stock Hits 52-Week Low Amid Continued Downtrend

Recent Price Movement and Market Context

The stock price of Nivaka Fashions Ltd has been on a declining trajectory, falling for four consecutive trading sessions and registering a cumulative loss of 12.86% over this period. Today’s new low of Rs.2.39 represents a sharp contrast to its 52-week high of Rs.5.37, underscoring the extent of the stock’s depreciation over the past year. This decline is more pronounced when compared to the Sensex, which has delivered a positive return of 6.94% over the same timeframe.

In terms of relative performance, Nivaka Fashions underperformed its sector by 2.72% today. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish momentum. Meanwhile, the Sensex opened lower at 81,947.31 points, down 0.75%, and is trading 4.97% below its own 52-week high of 86,159.02, indicating a broader cautious market environment.

Financial Performance and Profitability Concerns

Nivaka Fashions Ltd’s financial indicators reveal ongoing challenges. The company reported flat quarterly results for September 2025, with a PBDIT (Profit Before Depreciation, Interest and Taxes) of negative Rs.0.40 crore and a PBT (Profit Before Tax) less other income of negative Rs.0.60 crore. Earnings per share (EPS) for the quarter stood at a low of Rs.-0.06, reflecting subdued profitability.

Over the past year, the company’s profits have declined by 8%, contributing to the stock’s negative return of 28.77%. This contrasts sharply with the positive returns of the broader market indices and highlights the company’s relative underperformance. The company’s average Return on Equity (ROE) is a modest 1.81%, indicating limited profitability generated from shareholders’ funds.

Credit Metrics and Risk Profile

The company’s ability to service its debt remains weak, as evidenced 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. The stock’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell as of 29 December 2025, an upgrade from the previous Sell rating, reflecting deteriorated fundamentals and heightened risk.

Market capitalisation grading is low at 4, further underscoring the company’s limited scale and market presence. The stock is considered risky relative to its historical valuations, with consistent underperformance against the BSE500 benchmark over the last three years. This persistent lag in returns highlights structural challenges within the company’s business model and market positioning.

Shareholding Pattern and Sectoral Position

Majority shareholding in Nivaka Fashions Ltd is held by non-institutional investors, which may contribute to lower liquidity and higher volatility in the stock price. Operating within the Garments & Apparels sector, the company faces competitive pressures and market dynamics that have impacted its financial outcomes and stock performance.

Technical Indicators and Market Sentiment

The stock’s position below all major moving averages signals a bearish technical outlook. The 5-day, 20-day, 50-day, 100-day, and 200-day moving averages all lie above the current price, indicating sustained selling pressure. This technical weakness is compounded by the stock’s underperformance relative to its sector and the broader market indices.

Despite the Sensex trading below its 50-day moving average, the 50DMA remains above the 200DMA, suggesting that the broader market retains some underlying strength. However, Nivaka Fashions Ltd’s divergence from these trends highlights company-specific factors weighing on its share price.

Summary of Key Metrics

To summarise, Nivaka Fashions Ltd’s stock has declined to Rs.2.39, its lowest level in 52 weeks, following a series of negative financial results and weak credit metrics. The company’s earnings and profitability indicators remain subdued, with negative EBITDA and low return on equity. The stock’s Mojo Grade of Strong Sell and a low market capitalisation grade reflect the challenges faced by the company in the current market environment.

While the broader market indices have shown resilience, Nivaka Fashions Ltd continues to face headwinds that have contributed to its sustained underperformance and price erosion over the past year.

Unlock special upgrade rates for a limited period. Start Saving Now →