Stock Price and Market Performance Overview
On 20 Feb 2026, Nivaka Fashions Ltd recorded its lowest-ever trading price at Rs.1.76. Despite this, the stock marginally outperformed its sector by 4.21% on the day, though it remained flat with a 0.00% change compared to the Sensex’s decline of 0.23%. This slight resilience followed two consecutive days of losses, indicating a tentative pause in the downward momentum.
However, the broader trend remains unfavourable. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish sentiment. Over the past week, the stock declined by 5.38%, significantly underperforming the Sensex’s modest 0.39% fall. The one-month performance is particularly stark, with a 38.46% drop against a 0.15% gain in the Sensex.
Longer-term figures paint a more concerning picture. Over three months, the stock has plummeted 56.44%, while the Sensex fell only 3.89%. The one-year return stands at -47.46%, in contrast to the Sensex’s positive 8.67%. Year-to-date, the stock has lost 44.13%, far exceeding the Sensex’s 3.42% decline. Over three and five years, the stock has delivered negative returns of 48.08% and 79.29% respectively, while the Sensex gained 35.61% and 61.73% over the same periods. The ten-year performance remains flat at 0.00%, compared to the Sensex’s robust 247.14% growth.
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Financial Health and Profitability Metrics
Nivaka Fashions Ltd’s financial indicators reveal ongoing difficulties. The company has been reporting operating losses, which have contributed to a weak long-term fundamental strength assessment. Its ability to service debt is notably strained, with an average EBIT to interest ratio of -0.34, indicating that earnings before interest and taxes are insufficient to cover interest expenses.
Profitability remains subdued, with an average Return on Equity (ROE) of just 1.81%. This low ROE suggests limited returns generated on shareholders’ funds, reflecting challenges in translating capital into sustainable profits. Additionally, the company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) have been negative, further underscoring the financial strain.
Over the past year, profits have declined by 52%, a steep contraction that aligns with the stock’s 47.46% negative return over the same period. This decline in profitability has contributed to the stock’s classification as a ‘Strong Sell’ by MarketsMOJO, with a Mojo Score of 12.0 and a recent downgrade from ‘Sell’ to ‘Strong Sell’ on 29 Dec 2025.
Comparative Performance and Market Position
When benchmarked against the BSE500 index, Nivaka Fashions Ltd has underperformed consistently across multiple time frames. The stock’s returns over the last three months, one year, and three years have all lagged behind the broader index, highlighting persistent challenges in regaining market traction.
The company operates within the Garments & Apparels sector, which has seen mixed performance. Despite some sector resilience, Nivaka Fashions Ltd’s stock has not benefited from any sector tailwinds, remaining below all major moving averages and continuing its downward trajectory.
Ownership structure indicates that the majority shareholders are non-institutional, which may influence liquidity and trading dynamics. The market capitalisation grade stands at 4, reflecting a relatively modest market cap compared to larger peers.
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Recent Quarterly Results and Trend Analysis
The company reported flat results in the quarter ending December 2025, indicating no significant improvement in financial performance. This stagnation follows a prolonged period of declining profitability and market valuation.
Technical indicators reinforce the bearish outlook. The stock’s position below all major moving averages suggests that the prevailing downtrend remains intact. Although the stock showed a minor gain after two days of consecutive falls, this has not yet translated into a sustained recovery.
Valuation metrics indicate that the stock is trading at levels considered risky relative to its historical averages. This elevated risk profile is compounded by the company’s negative EBITDA and weak debt servicing capacity.
Summary of Key Metrics
• All-time low price: Rs.1.76 (20 Feb 2026)
• Mojo Score: 12.0 (Strong Sell, downgraded from Sell on 29 Dec 2025)
• Market Cap Grade: 4
• 1 Year Return: -47.46% vs Sensex +8.67%
• 3 Year Return: -48.08% vs Sensex +35.61%
• 5 Year Return: -79.29% vs Sensex +61.73%
• EBIT to Interest Ratio (avg): -0.34
• Return on Equity (avg): 1.81%
• Profit decline over past year: -52%
• Negative EBITDA status
• Majority shareholders: Non-Institutional
The data collectively illustrates a company facing significant financial and market challenges, reflected in its stock price reaching unprecedented lows and sustained underperformance relative to benchmarks.
Contextualising the Stock’s Position
While the Garments & Apparels sector has experienced varied fortunes, Nivaka Fashions Ltd’s trajectory has been notably adverse. The stock’s inability to maintain profitability and generate positive returns over multiple time horizons contrasts sharply with the broader market’s gains, including the Sensex’s 247.14% rise over ten years.
The company’s financial metrics, including weak debt coverage and low ROE, highlight structural issues that have contributed to its diminished market standing. The flat quarterly results and negative EBITDA further underscore the ongoing difficulties in reversing the downtrend.
Despite a brief pause in the recent decline, the stock remains positioned below all key technical indicators, suggesting that the current all-time low is a reflection of sustained market sentiment rather than a short-term anomaly.
Conclusion
Nivaka Fashions Ltd’s fall to an all-time low price of Rs.1.76 marks a significant event in its market history, underscoring persistent challenges in financial performance and market valuation. The company’s weak fundamental metrics, coupled with prolonged underperformance against major indices and sector peers, illustrate the severity of its current position. The stock’s classification as a Strong Sell by MarketsMOJO reflects these realities, with no immediate signs of reversal evident in recent data.
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