Nivaka Fashions Ltd Stock Hits 52-Week Low Amidst Weak Financial Metrics

Stock Price Movement and Market Context

On 3 Feb 2026, Nivaka Fashions Ltd’s share price reached Rs.2.33, the lowest level recorded in the past year. This represents a sharp fall from its 52-week high of Rs.5.37, indicating a depreciation of over 56% from the peak. Despite the stock outperforming its sector by 1.38% on the day, the broader Garments & Apparels sector gained 2.15%, suggesting the company’s relative underperformance within its industry.

Technical indicators show the stock trading above its 5-day moving average but remaining below its 20-day, 50-day, 100-day, and 200-day moving averages. This pattern highlights a short-term recovery attempt amid a longer-term downtrend.

Meanwhile, the broader market environment was mixed. The Sensex opened with a gap up of 3,656.74 points but lost momentum, closing down by 1,352.01 points at 83,971.19, a 2.82% decline. The Sensex remains 2.61% below its 52-week high of 86,159.02. Mega-cap stocks led the market, contrasting with the struggles of smaller companies like Nivaka Fashions.

Financial Performance and Fundamental Assessment

Nivaka Fashions Ltd’s financial metrics continue to reflect pressures. The company reported flat quarterly results for September 2025, with PBDIT (Profit Before Depreciation, Interest and Taxes) at a negative Rs.0.40 crore and PBT (Profit Before Tax) less other income at a negative Rs.0.60 crore. Earnings per share (EPS) for the quarter stood at a low Rs.-0.06, underscoring limited profitability.

The company’s average EBIT to interest ratio is -0.29, indicating a weak capacity to service debt obligations. Return on Equity (ROE) averaged 1.81%, signalling low returns generated on shareholders’ funds. These figures contribute to the company’s current Mojo Grade of Strong Sell, upgraded from Sell on 29 Dec 2025, with a Mojo Score of 12.0, reflecting deteriorated fundamentals.

Long-Term Performance and Valuation Concerns

Over the past year, Nivaka Fashions Ltd’s stock has declined by 28.81%, significantly underperforming the Sensex, which gained 8.79% 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 company’s earnings have also contracted, with profits falling by 8% over the last year. Negative EBITDA levels further highlight the financial strain, contributing to the stock’s classification as risky relative to its historical valuation averages.

Market capitalisation grading stands at 4, reflecting the company’s modest size and limited market influence compared to larger peers in the Garments & Apparels sector.

Shareholding Pattern and Sector Dynamics

Majority shareholding in Nivaka Fashions Ltd is held by non-institutional investors, which may influence liquidity and trading dynamics. The Garments & Apparels sector itself has shown mixed performance, with some stocks gaining traction while others face headwinds.

Despite the sector’s 2.15% gain on the day, Nivaka Fashions’ stock remains subdued, reflecting company-specific factors rather than broader industry trends.

Summary of Key Metrics

The following figures summarise the current state of Nivaka Fashions Ltd:

• Current Price: Rs.2.33 (52-week low)
• 52-Week High: Rs.5.37
• One-Year Stock Return: -28.81%
• Sensex One-Year Return: +8.79%
• Mojo Score: 12.0 (Strong Sell)
• EBIT to Interest Ratio (avg): -0.29
• Return on Equity (avg): 1.81%
• Quarterly PBDIT: Rs.-0.40 crore
• Quarterly PBT less Other Income: Rs.-0.60 crore
• Quarterly EPS: Rs.-0.06

These metrics collectively illustrate the challenges faced by the company in maintaining profitability and market valuation.

Market and Technical Outlook

Technically, the stock’s position below its medium and long-term moving averages suggests a prevailing downward momentum. The short-term price movement above the 5-day moving average may indicate minor relief but does not yet signal a reversal of the broader trend.

In contrast, the Sensex’s current trading below its 50-day moving average, despite the 50DMA being above the 200DMA, reflects a cautious market environment with selective sector and stock performances.

Within this context, Nivaka Fashions Ltd’s stock remains under pressure, reflecting both company-specific financial constraints and broader market dynamics.

Conclusion

Nivaka Fashions Ltd’s fall to a 52-week low of Rs.2.33 underscores the ongoing challenges faced by the company in the Garments & Apparels sector. The combination of subdued financial results, weak debt servicing ability, and consistent underperformance relative to benchmarks has contributed to the stock’s current valuation and market sentiment. While the broader sector and market show pockets of strength, Nivaka Fashions continues to navigate a difficult phase as reflected in its recent price action and fundamental indicators.

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