Recent Price Movement and Market Context
On 27 Nov 2025, Padam Cotton Yarns traded at Rs.2.46, its lowest level in the past year. This price point contrasts sharply with its 52-week high of Rs.12.76, indicating a substantial contraction in market value. The stock's day change registered a decline of 4.65%, underperforming the Garments & Apparels sector by 4.72% on the same day.
Despite the broader market environment showing strength, with the Sensex opening 135.54 points higher and reaching a new 52-week high of 85,825.43, Padam Cotton Yarns has not mirrored this positive momentum. The Sensex has been on a three-week consecutive rise, gaining 3.14% over this period, supported by mega-cap stocks trading above their 50-day and 200-day moving averages. In contrast, Padam Cotton Yarns is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day, signalling persistent downward pressure on the stock.
Performance Over the Past Year
Over the last twelve months, Padam Cotton Yarns has generated a negative return of -65.17%, a stark contrast to the Sensex's positive return of 6.97% and the BSE500 index's 5.27% gain. This divergence highlights the stock's relative underperformance within the broader market and its sector peers.
The prolonged decline has resulted in a market capitalisation grade of 4, reflecting its micro-cap status and limited market liquidity compared to larger peers. The stock's sustained fall over 11 sessions and its position below all major moving averages underscore the challenges faced in regaining investor confidence.
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Financial Metrics and Operational Highlights
Padam Cotton Yarns operates within the Garments & Apparels industry and has demonstrated notable financial characteristics despite the stock's price decline. 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 for this timeframe.
Over the longer term, the company’s net sales have expanded at an annual rate of 290.10%, while operating profit has grown at 292.17%. These figures indicate a healthy growth trajectory in revenue and operating performance. Additionally, the company has declared positive results for five consecutive quarters, signalling consistent profitability.
Padam Cotton Yarns maintains a low debt-to-equity ratio, averaging zero, which suggests a conservative capital structure with minimal reliance on external borrowings. The return on equity (ROE) stands at a robust 45.09%, highlighting efficient utilisation of shareholder funds. Furthermore, the stock offers a dividend yield of 5.04% at the current price, providing income potential relative to its market valuation.
Valuation and Shareholding Structure
The stock is trading at a price-to-book value of approximately 1.6, which is considered attractive relative to its peers’ historical valuations. Despite the significant price decline, the company’s profits have risen by 826% over the past year, indicating a disconnect between earnings growth and market valuation. The PEG ratio is noted as zero, reflecting the relationship between price, earnings growth, and valuation metrics.
Majority shareholding is held by non-institutional investors, which may influence trading patterns and liquidity. The stock’s micro-cap status and limited institutional participation could contribute to its price volatility and subdued market performance.
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Sector and Market Comparison
Within the Garments & Apparels sector, Padam Cotton Yarns’ recent performance contrasts with the broader market trends. While the sector and indices such as the Sensex have shown resilience and upward momentum, Padam Cotton Yarns has lagged behind, reflected in its underperformance relative to sector averages and benchmark indices.
The Sensex’s current trading above its 50-day and 200-day moving averages, coupled with a three-week consecutive rise, underscores a bullish market environment that Padam Cotton Yarns has not participated in. This divergence highlights the stock’s unique challenges amid a generally positive market backdrop.
Summary of Key Price and Performance Indicators
Padam Cotton Yarns’ stock price has declined by 65.17% over the past year, with a recent 11-day losing streak resulting in a 38.04% return loss during that period. The stock’s current price of Rs.2.46 is well below all major moving averages, signalling sustained downward momentum. Despite this, the company’s financials reveal strong growth in sales and profits, a high ROE, and a dividend yield exceeding 5%, which are notable features amid the price weakness.
The stock’s market capitalisation grade of 4 and majority non-institutional shareholding reflect its micro-cap status and trading dynamics. These factors, combined with its valuation metrics, provide a comprehensive picture of the stock’s current standing within the Garments & Apparels sector and the broader market.
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