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

Recent Price Movement and Market Context

The stock price of Nivaka Fashions Ltd declined by 0.57% on the day, marginally outperforming the Sensex which fell 0.86%. Despite this relative outperformance, the stock has been on a losing streak for two consecutive days, accumulating a negative return of 4.95% over this period. The current price of Rs.1.73 represents both a 52-week and all-time low, underscoring the severity of the decline.

Over longer time frames, the stock’s performance has been markedly weak compared to benchmark indices. In the past one month, the stock has plunged 38.21%, while the Sensex gained 1.28%. The three-month return is even more stark, with a 56.42% fall against the Sensex’s modest 2.73% decline. Year-to-date, the stock has lost 45.08%, significantly underperforming the Sensex’s 3.10% fall. Over the last year, the stock has declined 49.42%, contrasting sharply with the Sensex’s 10.91% gain. The underperformance extends over multiple years, with a 79.65% drop over five years versus a 62.62% rise in the Sensex, and a flat return over ten years compared to the Sensex’s 257.66% increase.

Technical indicators also reflect the bearish trend. Nivaka Fashions is trading below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – signalling sustained downward momentum.

Financial Performance and Fundamental Assessment

Nivaka Fashions Ltd’s financial health remains under pressure, as reflected in its recent flat results for the quarter ended December 2025. The company continues to report operating losses, which contribute to a weak long-term fundamental strength assessment. Its ability to service debt is notably constrained, with an average EBIT to interest ratio of -0.34, indicating that earnings before interest and tax are insufficient to cover interest expenses.

Profitability metrics also highlight challenges. The company’s average Return on Equity (ROE) stands at a modest 1.81%, signalling limited profitability generated per unit of shareholders’ funds. Additionally, the firm’s earnings before interest, tax, depreciation and amortisation (EBITDA) remain negative, which adds to the risk profile of the stock.

Over the past year, profits have declined by 52%, further compounding the stock’s negative returns of 49.42%. This consistent underperformance is evident when compared to the BSE500 index, against which Nivaka Fashions has lagged in each of the last three annual periods.

Shareholding and Market Perception

The majority of shares in Nivaka Fashions Ltd are held by non-institutional investors, which may influence liquidity and market dynamics. The company’s Mojo Score currently stands at 12.0, with a Mojo Grade of Strong Sell as of 29 Dec 2025, upgraded from a Sell rating. The Market Cap Grade is rated 4, reflecting the company’s micro-cap status and associated market risks.

Despite the stock’s recent slight outperformance relative to its sector by 0.69% on the day of the new low, the broader trend remains firmly negative. The stock’s valuation is considered risky compared to its historical averages, reflecting the market’s cautious stance.

Summary of Performance Trends

The stock’s performance over multiple time horizons paints a consistent picture of decline. The one-week return of -7.49% starkly contrasts with the Sensex’s -1.04%, while the three-year return of -48.36% is in sharp contrast to the Sensex’s 38.87% gain. This persistent underperformance highlights the challenges faced by Nivaka Fashions Ltd in maintaining competitive positioning within the Garments & Apparels sector.

Given the company’s financial metrics, including negative EBITDA, weak debt servicing capacity, and low profitability ratios, the stock’s current valuation and market sentiment reflect these fundamental concerns.

Conclusion

Nivaka Fashions Ltd’s fall to an all-time low of Rs.1.73 marks a significant event in its market journey, underscoring a prolonged period of financial and market underperformance. The company’s weak profitability, negative earnings trends, and constrained debt servicing ability have contributed to a challenging valuation environment. While the stock has marginally outperformed its sector on the day of the new low, the broader trend remains subdued, with the stock trading below all major moving averages and continuing to lag benchmark indices over multiple periods.

Investors and market participants will note the company’s Strong Sell Mojo Grade and the associated risk profile as reflected in its financial and market data.

Only Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Start Today