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

Stock Performance Overview

On 26 Feb 2026, Nivaka Fashions Ltd’s share price settled at Rs.1.64, setting a fresh 52-week and all-time low. Despite a modest intraday gain of 2.35%, the stock underperformed its sector by 3.49% and remains below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the sustained bearish sentiment surrounding the stock.

Comparatively, the Sensex posted a marginal increase of 0.08% on the same day, highlighting the stock’s relative weakness. Over the past week, Nivaka Fashions declined by 1.14%, while the Sensex dipped only 0.19%. The monthly and quarterly performances are notably more severe, with the stock falling 37.86% and 56.93% respectively, against the Sensex’s positive 0.98% and negative 3.82% returns.

Long-Term Underperformance

The stock’s challenges extend well beyond short-term fluctuations. Over the last year, Nivaka Fashions has lost half its value, registering a 50.00% decline compared to the Sensex’s 10.37% gain. Year-to-date, the stock has dropped 44.76%, significantly underperforming the Sensex’s 3.38% loss. The three-year and five-year returns further illustrate the company’s struggles, with losses of 48.06% and 78.52% respectively, while the Sensex surged 38.47% and 67.70% over the same periods. Over a decade, the stock has remained flat, in stark contrast to the Sensex’s 255.62% appreciation.

Financial Metrics and Creditworthiness

Nivaka Fashions’ financial indicators reveal ongoing difficulties. The company’s average EBIT to interest ratio stands at -0.34, signalling a weak capacity to service debt obligations. This negative ratio reflects operating losses that have persisted over recent periods. Additionally, the average return on equity (ROE) is a modest 1.81%, indicating limited profitability relative to shareholders’ funds.

Profitability has deteriorated alongside stock price declines. Over the past year, profits have contracted by 52%, mirroring the 50% drop in share price. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) remain negative, contributing to the stock’s classification as risky when compared to its historical valuation averages.

Sector and Market Context

Operating within the Garments & Apparels sector, Nivaka Fashions faces a competitive environment where peers have generally outperformed. The stock’s underperformance relative to the BSE500 index over one year, three months, and three years highlights its challenges in maintaining market relevance and investor confidence. The sector itself has shown mixed results, but Nivaka’s trajectory remains distinctly below par.

Majority shareholding is held by non-institutional investors, which may influence liquidity and trading dynamics. The company’s market capitalisation grade is rated 4, reflecting its micro-cap status and associated market risks.

Recent Ratings and Market Sentiment

MarketsMOJO assigns Nivaka Fashions a Mojo Score of 12.0, categorising it as a Strong Sell. This rating was upgraded from Sell to Strong Sell on 29 Dec 2025, reflecting a deterioration in the company’s fundamentals and market outlook. The downgrade aligns with the company’s ongoing financial strain and stock price erosion.

The company’s flat financial results reported in December 2025 further underscore the absence of growth momentum. The combination of negative EBITDA, weak debt servicing ability, and low profitability metrics contribute to the cautious stance reflected in the Mojo Grade.

Summary of Key Challenges

Nivaka Fashions Ltd’s stock has experienced a sustained decline culminating in an all-time low price of Rs.1.64. The company’s financial indicators reveal persistent losses and limited profitability, with an average ROE of just 1.81% and a negative EBIT to interest ratio. The stock’s performance has lagged significantly behind the Sensex and sector benchmarks across multiple time frames, including one month, three months, one year, and beyond.

Trading below all major moving averages and classified as risky relative to historical valuations, the stock’s market capitalisation and shareholder composition further highlight its micro-cap status and associated risks. The Strong Sell rating from MarketsMOJO reflects these factors comprehensively.

Conclusion

The all-time low reached by Nivaka Fashions Ltd’s stock price is a clear indicator of the challenges faced by the company in recent years. The combination of declining profitability, negative earnings metrics, and underperformance relative to market indices paints a detailed picture of the company’s current standing within the Garments & Apparels sector.

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