Stock Price Movement and Market Context
On 26 Nov 2025, Padam Cotton Yarns recorded its lowest price in the past year at Rs.2.58. This level represents a substantial drop from its 52-week high of Rs.12.76, indicating a decline of nearly 80% over the period. The stock has been on a downward trajectory for the last 10 consecutive trading days, accumulating a loss of approximately 35.01% during this span.
In comparison, the Sensex has shown resilience, closing at 84,880.13 points, up 0.35% on the day and just 1.09% shy of its 52-week high of 85,801.70. The benchmark index is trading above its 50-day and 200-day moving averages, signalling a generally bullish market environment. Additionally, the BSE Small Cap index gained 0.82%, highlighting strength in smaller stocks, though Padam Cotton Yarns has not mirrored this trend.
Technical Indicators and Relative Performance
Padam Cotton Yarns is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning suggests a persistent downward momentum. The stock underperformed its sector, Garments & Apparels, by 4.74% on the day, further emphasising its relative weakness.
Over the last year, Padam Cotton Yarns has generated a negative return of 62.74%, while the Sensex has delivered a positive return of 6.08%. The BSE500 index, representing a broader market segment, has produced a 4.95% return in the same period, underscoring the stock’s underperformance relative to both the benchmark and its sector peers.
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Financial Performance and Operational Metrics
Despite the stock’s price challenges, Padam Cotton Yarns has demonstrated notable financial metrics. The company reported net sales of Rs.30.80 crores over the latest six-month period, with a profit after tax (PAT) of Rs.4.27 crores, reflecting a growth rate of 32.20% in PAT. The firm has declared positive results for five consecutive quarters, indicating consistent profitability.
The return on equity (ROE) stands at an impressive 45.09%, signalling efficient utilisation of shareholder funds. Furthermore, the company maintains a low average debt-to-equity ratio of zero, suggesting a conservative capital structure with minimal reliance on debt financing.
Padam Cotton Yarns’ operating profit and net sales have expanded at annual rates of 292.17% and 290.10% respectively, pointing to healthy long-term growth trends. The stock currently offers a dividend yield of 4.8%, with the highest dividend per share (DPS) recorded at Rs.0.01.
Valuation and Shareholding Pattern
The stock is trading at a price-to-book value of 1.7, which is considered attractive relative to its peers’ historical valuations. Over the past year, while the stock price has declined, the company’s profits have risen by 826%, indicating a divergence between earnings growth and market valuation.
Majority shareholding is held by non-institutional investors, which may influence trading dynamics and liquidity. The company’s valuation metrics and dividend yield suggest that the stock is priced at a discount compared to sector averages.
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Sector and Market Comparison
Padam Cotton Yarns operates within the Garments & Apparels industry, a sector that has experienced mixed performance in recent months. While the broader market indices have shown upward trends, the stock’s price trajectory has diverged, reflecting company-specific factors and market sentiment.
The stock’s underperformance relative to the BSE500 and Sensex indices highlights challenges in aligning with broader market gains. However, the company’s financial data points to operational strength and growth potential, as evidenced by expanding sales and profitability metrics.
Summary of Key Price and Performance Data
Padam Cotton Yarns’ 52-week high was Rs.12.76, with the current 52-week low at Rs.2.58. The stock has declined by 62.74% over the past year, contrasting with the Sensex’s positive return of 6.08%. The recent 10-day period has seen a 35.01% reduction in stock price, with the latest trading session showing a 4.80% drop.
Trading below all major moving averages, the stock’s technical indicators suggest continued pressure. The sector and market indices, however, maintain a generally positive outlook, with the Sensex trading above its 50-day and 200-day moving averages and small caps leading gains.
Conclusion
Padam Cotton Yarns’ fall to a 52-week low of Rs.2.58 marks a significant moment in its recent trading history. While the stock’s price performance has lagged behind the broader market and sector indices, the company’s financial results reveal sustained growth in sales and profits, alongside strong return on equity and a conservative debt profile. These factors provide a comprehensive view of the company’s current standing within the Garments & Apparels sector.
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