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

Recent Price Movement and Market Context

On 6 Feb 2026, Nivaka Fashions Ltd’s share price fell to Rs.2.13, the lowest level in the past year. This decline comes after five consecutive days of losses, during which the stock has dropped by 13.06%. The day’s performance saw the stock underperform its sector by 3.82%, highlighting relative weakness within the Garments & Apparels industry.

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. In contrast, the broader market benchmark, the Sensex, opened flat but traded down by 0.25% to 83,101.79 points, remaining 3.68% below its 52-week high of 86,159.02. While the Sensex is below its 50-day moving average, the 50DMA remains above the 200DMA, indicating mixed medium-term market signals.

Long-Term Performance and Relative Weakness

Over the past year, Nivaka Fashions Ltd has delivered a negative return of 33.62%, starkly contrasting with the Sensex’s positive 6.47% gain over the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods. The stock’s 52-week high was Rs.5.37, underscoring the steep decline to the current low.

Financial Metrics and Profitability Concerns

Nivaka Fashions Ltd’s financial profile reveals several areas of concern. The company has reported operating losses, contributing to a weak long-term fundamental strength assessment. Its ability to service debt is limited, with an average EBIT to interest ratio of -0.29, indicating that earnings before interest and taxes are insufficient to cover interest expenses.

Profitability metrics also remain subdued. The average Return on Equity (ROE) stands at 1.81%, reflecting low profitability generated per unit of shareholders’ funds. Quarterly results for September 2025 further illustrate the challenges: PBDIT (Profit Before Depreciation, Interest and Taxes) was at a low of Rs.-0.40 crore, PBT (Profit Before Tax) excluding other income was Rs.-0.60 crore, and Earnings Per Share (EPS) dropped to Rs.-0.06, marking the lowest quarterly figures recorded.

Valuation and Risk Profile

The stock is considered risky relative to its historical valuations. Over the last year, profits have declined by 8%, compounding the negative return of 33.62% for shareholders. This deterioration in earnings, combined with the stock’s consistent underperformance against benchmarks, has contributed to its current Mojo Grade of Strong Sell, upgraded from Sell on 29 Dec 2025. The Mojo Score stands at 12.0, reflecting the heightened risk profile.

Market capitalisation grading is low at 4, consistent with the company’s micro-cap status and limited institutional ownership. The majority of shareholders are non-institutional, which may influence liquidity and trading dynamics.

Sector and Industry Positioning

Operating within the Garments & Apparels sector, Nivaka Fashions Ltd faces competitive pressures and market headwinds that have contributed to its subdued performance. The sector itself has seen mixed results, with some companies maintaining momentum while others, like Nivaka, have struggled to sustain profitability and investor confidence.

The stock’s current valuation and technical indicators suggest that it remains in a challenging phase, with no recent signs of reversal. The broader market environment, as reflected by the Sensex’s modest decline and proximity to its 52-week high, contrasts with the stock’s ongoing weakness.

Shareholding Pattern and Market Dynamics

The company’s shareholding is predominantly held by non-institutional investors, which may affect trading volumes and price stability. Institutional participation is limited, potentially reflecting cautious sentiment towards the stock given its financial metrics and recent performance.

Liquidity considerations and market interest remain subdued, as evidenced by the stock’s consistent decline and failure to sustain levels above key moving averages.

Summary of Key Data Points

• New 52-week low price: Rs.2.13 (6 Feb 2026)
• Five-day consecutive decline: -13.06%
• Underperformance vs sector today: -3.82%
• One-year return: -33.62% vs Sensex +6.47%
• Mojo Score: 12.0 (Strong Sell, upgraded from Sell on 29 Dec 2025)
• EBIT to Interest ratio (avg): -0.29
• Return on Equity (avg): 1.81%
• Quarterly PBDIT (Sep 2025): Rs.-0.40 crore
• Quarterly PBT less other income (Sep 2025): Rs.-0.60 crore
• Quarterly EPS (Sep 2025): Rs.-0.06
• Market Cap Grade: 4

The data underscores the challenges faced by Nivaka Fashions Ltd in maintaining profitability and market valuation, contributing to its current position at a 52-week low.

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