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

Stock Price and Market Performance Overview

On 23 Feb 2026, Nivaka Fashions Ltd’s share price declined by 4.95% in a single trading session, closing just 3.89% above its 52-week low of ₹1.73. This drop contrasts sharply with the Sensex’s modest gain of 0.37% on the same day, underscoring the stock’s relative weakness. The stock has consistently traded below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum.

Over the past week, the stock has declined by 6.99%, while the Sensex marginally decreased by 0.19%. The one-month performance is particularly stark, with a 38.21% loss compared to the Sensex’s 1.94% gain. Extending the horizon, the three-month decline stands at 55.41%, far exceeding the Sensex’s 2.48% drop. The stock’s one-year return is negative 49.12%, in contrast to the Sensex’s positive 10.37% growth, and year-to-date losses amount to 45.08% against the Sensex’s 2.47% decline.

Longer-term figures reveal a troubling trend: over three years, the stock has lost 45.08%, while the Sensex has surged 39.45%. The five-year performance is even more pronounced, with a 79.65% loss versus the Sensex’s 67.07% gain. Over a decade, the stock has effectively stagnated, registering no growth, while the Sensex has appreciated by 255.05%.

Financial Health and Fundamental Metrics

Nivaka Fashions Ltd’s financial indicators highlight ongoing difficulties. The company reported flat results in December 2025, with no significant improvement in earnings. Its operating losses have contributed to a weak long-term fundamental strength assessment. The company’s ability to service debt remains constrained, as evidenced by a poor average EBIT to interest ratio of -0.34, indicating that earnings before interest and tax are insufficient to cover interest expenses.

Profitability metrics further illustrate the challenges faced. The average return on equity (ROE) stands at a modest 1.81%, signalling limited profitability generated per unit of shareholders’ funds. Additionally, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) remain negative, contributing to a riskier valuation profile compared to its historical averages.

Profitability has deteriorated alongside the stock price, with profits falling by 52% over the past year. This decline has coincided with the stock’s 49.12% negative return during the same period. The company’s performance has been below par both in the near term and over longer durations, underperforming the BSE500 index across the last three months, one year, and three years.

Market Position and Shareholding Structure

The company operates within the Garments & Apparels industry and sector, where competitive pressures and market dynamics have intensified. Nivaka Fashions Ltd’s market capitalisation grade is rated 4, reflecting a relatively small market cap compared to larger peers. The Mojo Score assigned to the stock is 12.0, with a Mojo Grade of Strong Sell as of 29 Dec 2025, an upgrade from the previous Sell rating, indicating a further deterioration in the stock’s outlook based on MarketsMOJO’s comprehensive evaluation framework.

Shareholding patterns reveal that the majority of shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The stock’s risk profile is elevated due to its negative EBITDA and weak debt servicing capacity, factors that contribute to its classification as a risky investment relative to historical valuation norms.

Comparative Performance and Sector Context

When compared to the broader market and sector indices, Nivaka Fashions Ltd has consistently lagged behind. Its underperformance relative to the Sensex and BSE500 indices across multiple time frames highlights the severity of its decline. The stock’s negative returns contrast with the positive gains recorded by the Sensex over one, three, five, and ten-year periods, emphasising the divergence in performance.

Within the Garments & Apparels sector, the stock has also underperformed, losing ground against sector peers and broader market benchmarks. This persistent underperformance is reflected in the stock’s trading below all major moving averages, signalling sustained downward momentum and limited investor confidence in the near term.

Summary of Key Metrics

The following encapsulates the critical financial and market metrics for Nivaka Fashions Ltd as of the latest data:

• Mojo Score: 12.0
• Mojo Grade: Strong Sell (upgraded from Sell on 29 Dec 2025)
• Market Cap Grade: 4
• Price proximity to 52-week low: 3.89%
• One-day price change: -4.95%
• One-year return: -49.12%
• Three-year return: -45.08%
• Five-year return: -79.65%
• EBIT to Interest ratio (average): -0.34
• Return on Equity (average): 1.81%
• Profit decline over past year: -52%

These figures collectively illustrate the stock’s challenging position within the market and its sector, underscoring the extent of its decline and the financial pressures faced by the company.

Conclusion

Nivaka Fashions Ltd’s stock reaching an all-time low is a significant event that reflects a prolonged period of underperformance and financial strain. The company’s weak profitability, negative EBITDA, and limited debt servicing ability have contributed to a deteriorated fundamental profile. Its consistent underperformance relative to the Sensex and sector benchmarks over multiple time frames further highlights the severity of the situation. The stock’s current valuation and market metrics position it as a high-risk security within the Garments & Apparels sector.

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