Nivaka Fashions Ltd Stock Hits All-Time Low Amid Prolonged Downtrend

Stock Price Movement and Market Context

On 12 Feb 2026, Nivaka Fashions Ltd recorded a day gain of 2.70%, outperforming the Sensex which declined by 0.46%. This modest uptick followed eight consecutive days of declines, signalling a brief pause in the stock’s persistent downtrend. Despite this short-term gain, the stock remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the prevailing bearish sentiment.

Over the past week, the stock has declined by 15.18%, while the Sensex gained 0.64%. The one-month performance shows a sharper fall of 38.91%, compared to a near-flat Sensex movement of -0.04%. Extending the horizon, the three-month decline stands at 47.37%, starkly contrasting with the Sensex’s modest 0.74% drop. The year-to-date performance is similarly weak, with a 39.68% loss against the Sensex’s 1.61% decline.

Longer-term figures reveal a consistent pattern of underperformance. Over one year, Nivaka Fashions has lost 45.71%, while the Sensex has gained 10.07%. The three-year and five-year returns are -45.71% and -77.65% respectively, compared to Sensex gains of 38.17% and 62.67%. Over a decade, the stock has effectively stagnated with a 0.00% return, whereas the Sensex surged 264.76%.

Financial Performance and Fundamental Assessment

Nivaka Fashions Ltd’s financial metrics reveal considerable strain. The company has experienced a compound annual growth rate (CAGR) decline of 39.43% in net sales over the past five years, indicating shrinking revenue streams. Profitability metrics remain subdued, with an average Return on Equity (ROE) of just 1.81%, reflecting limited returns generated on shareholders’ funds.

The company’s ability to service debt is notably weak, as evidenced by an average EBIT to interest ratio of -0.29. This negative ratio suggests that earnings before interest and tax have been insufficient to cover interest expenses, raising concerns about financial sustainability. Additionally, the company reported flat results in December 2025, offering little indication of improvement in recent quarters.

Profitability has also deteriorated, with profits falling by 8% over the past year. The stock’s valuation appears risky relative to its historical averages, further compounding investor caution. These factors collectively contribute to the stock’s current classification with a Mojo Score of 12.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 29 Dec 2025.

Comparative Sector and Market Performance

Within the Garments & Apparels sector, Nivaka Fashions Ltd’s performance has lagged significantly. While the sector has shown resilience, the stock’s persistent decline contrasts sharply with broader market indices and sector benchmarks. The stock’s underperformance relative to the BSE500 index over the last three months, one year, and three years highlights its challenges in regaining investor confidence.

Majority shareholding remains with non-institutional investors, which may influence liquidity and trading dynamics. The company’s market capitalisation grade stands at 4, indicating a relatively modest market cap within its sector.

Summary of Key Metrics

The stock’s proximity to its 52-week low at ₹1.85, combined with a negative EBITDA and weak long-term fundamentals, paints a challenging picture. The company’s inability to generate consistent growth or profitability has been reflected in its stock price, which has failed to recover despite occasional short-term gains.

While the stock outperformed its sector by 2.03% on the latest trading day, this is a minor reprieve in an otherwise extended period of decline. The downward trend over multiple time frames, including one month (-38.91%), three months (-47.37%), and one year (-45.71%), underscores the severity of the situation.

Investors and market participants will note the company’s low market capitalisation grade and the predominance of non-institutional shareholders, factors that may affect trading volumes and price stability.

Conclusion

Nivaka Fashions Ltd’s stock reaching an all-time low is a significant event that reflects ongoing difficulties in financial performance and market valuation. The company’s weak sales growth, low profitability, and challenges in covering interest expenses have contributed to its current standing. Despite a brief positive movement in recent trading, the stock remains entrenched in a prolonged downtrend, underperforming both its sector and the broader market indices over multiple periods.

These developments highlight the importance of closely monitoring fundamental and market indicators when assessing stocks within the Garments & Apparels sector.

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