Stock Performance Overview
The stock’s recent performance paints a stark picture of its struggles. Over the past year, Nivaka Fashions has delivered a return of -52.30%, sharply contrasting with the Sensex’s positive 10.78% gain during the same period. The decline is even more pronounced over longer durations, with a five-year loss of 79.76% against the Sensex’s robust 61.92% rise. The three-year performance also highlights consistent underperformance, with the stock down 50.45% while the benchmark index advanced nearly 39%.
Shorter-term trends remain unfavourable. The stock has lost 40.71% in the last month and nearly 57% over three months, while the Sensex posted gains of 1.35% and a modest decline of 2.30% respectively. Year-to-date, Nivaka Fashions has declined 47.30%, significantly underperforming the Sensex’s 3.03% fall. The stock’s price remains below all key moving averages – 5-day, 20-day, 50-day, 100-day, and 200-day – indicating a persistent bearish trend.
Market Context and Relative Performance
Despite a flat day’s performance with no change in price, Nivaka Fashions marginally outperformed its sector by 2.18% on the day. However, this small uptick follows two consecutive days of decline, suggesting limited short-term relief. The stock’s 1-week performance of -10.27% also contrasts with the Sensex’s relatively mild 1.31% loss, reinforcing the stock’s vulnerability amid broader market movements.
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Financial Health and Profitability Metrics
Nivaka Fashions’ financial indicators reveal ongoing difficulties. The company has reported operating losses, contributing 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, signalling that earnings before interest and tax are insufficient to cover interest expenses.
Profitability remains subdued, with an average return on equity (ROE) of just 1.81%, indicating limited returns generated on shareholders’ funds. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) have been negative, further emphasising the financial pressures it faces. Over the past year, profits have declined by 52%, mirroring the steep drop in stock price.
Trend Analysis and Valuation Concerns
The stock is trading at valuations considered risky relative to its historical averages. Its consistent underperformance against the BSE500 benchmark over the last three years highlights a persistent inability to keep pace with broader market indices. This trend is reflected in the stock’s downgrade from a ‘Sell’ to a ‘Strong Sell’ rating by MarketsMOJO on 29 December 2025, with a current Mojo Score of 12.0, underscoring the severity of its position within the Garments & Apparels sector.
Market capitalisation grading remains low at 4, reflecting the company’s diminished size and market presence. The majority of shares are held by non-institutional investors, which may influence liquidity and trading dynamics.
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Recent Financial Results
The company reported flat results in December 2025, which did little to alter the prevailing negative sentiment. The absence of growth in key financial metrics during this period adds to the narrative of stagnation and ongoing difficulties in reversing the downward trajectory.
Sector and Industry Context
Operating within the Garments & Apparels sector, Nivaka Fashions faces a competitive environment where market dynamics and consumer preferences can shift rapidly. The stock’s performance relative to its sector peers has been notably weak, with the recent outperformance on a single day insufficient to offset the broader trend of decline.
Summary of Key Metrics
To summarise, Nivaka Fashions Ltd’s stock is trading near historic lows, with a 52-week low of ₹1.66 and a current price just 2.35% above that mark. The stock’s long-term and short-term returns have been deeply negative, with a five-year loss approaching 80%. Financial ratios indicate weak profitability and debt servicing capacity, while valuation metrics suggest elevated risk compared to historical norms.
These factors collectively contribute to the stock’s ‘Strong Sell’ Mojo Grade and low market capitalisation rating, reflecting the challenges the company continues to face in the current market environment.
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