Stock Price Movement and Market Context
On 27 Nov 2025, Padam Cotton Yarns recorded its lowest price in the last year at Rs.2.46, underperforming its sector by 4.72% on the day. This decline comes despite a broadly positive market environment, with the Sensex opening 135.54 points higher and trading at a new 52-week high of 85,825.43, representing a 0.25% gain. The Sensex has been on a three-week consecutive rise, accumulating a 3.14% increase, supported by mega-cap stocks leading the market.
Padam Cotton Yarns’ stock price currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum. The stock’s 52-week high was Rs.12.76, highlighting the extent of the price contraction over the past year.
Performance Relative to Benchmarks
Over the last twelve months, Padam Cotton Yarns has generated a negative return of 65.17%, contrasting sharply with the Sensex’s positive return of 6.97% and the BSE500 index’s 5.25% gain. This divergence underscores the stock’s underperformance relative to broader market indices and its sector peers.
The stock’s market capitalisation grade is noted as 4, reflecting its mid-cap status within the Garments & Apparels industry. Despite the challenging price performance, the stock offers a dividend yield of 5.04% at the current price level, which is relatively high compared to many peers.
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Financial Metrics and Operational Highlights
Padam Cotton Yarns exhibits a high return on equity (ROE) of 45.09%, indicating efficient utilisation of shareholder funds. The company maintains a low average debt-to-equity ratio of zero, suggesting a conservative capital structure with minimal reliance on debt financing.
Net sales have shown robust growth, with an annual rate of 290.10%, while operating profit has expanded at a similar pace of 292.17%. The company has reported positive results for five consecutive quarters, with net sales for the latest six months reaching Rs.30.80 crores. Profit after tax (PAT) for the same period stands at Rs.4.27 crores, reflecting a growth rate of 32.20%.
The dividend per share (DPS) is recorded at Rs.0.01, the highest in recent periods, contributing to the attractive dividend yield noted earlier. The company’s price-to-book value ratio is 1.6, which is considered appealing relative to its peers’ historical valuations.
Shareholding and Valuation Considerations
Majority shareholding in Padam Cotton Yarns is held by non-institutional investors, which may influence trading patterns and liquidity. Despite the stock’s price decline, the company’s profits have risen by 826% over the past year, a notable contrast to the negative stock returns. The price-to-earnings-to-growth (PEG) ratio is reported as zero, reflecting the relationship between earnings growth and valuation metrics.
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Summary of Recent Price Trends
The stock has been on a continuous downward trajectory for eleven trading sessions, resulting in a cumulative loss of 38.04% over this period. This sustained decline has brought the price to its lowest level in a year, at Rs.2.46. The stock’s performance contrasts with the broader market’s positive momentum, as the Sensex continues to trade above its 50-day and 200-day moving averages, signalling a bullish trend for large-cap indices.
Padam Cotton Yarns’ current trading position below all major moving averages highlights the prevailing market sentiment towards the stock. The gap between the stock’s 52-week high of Rs.12.76 and the current price emphasises the significant price correction experienced over the past year.
Industry and Sector Context
Operating within the Garments & Apparels sector, Padam Cotton Yarns faces sectoral dynamics that have influenced its stock performance. While the sector has seen varied performance, the company’s financial results indicate growth in sales and profitability metrics. However, these positive financial indicators have not translated into upward price movement in the stock market.
The company’s high dividend yield of 5.04% at the current price level may be of interest to income-focused investors, although the stock’s price volatility remains a key consideration.
Conclusion
Padam Cotton Yarns’ fall to a 52-week low of Rs.2.46 reflects a prolonged period of price weakness despite underlying growth in sales and profits. The stock’s underperformance relative to the Sensex and its sector peers is notable, with a significant gap between its current valuation and historical highs. Trading below all major moving averages, the stock remains in a subdued phase amid a generally positive market backdrop.
Investors analysing Padam Cotton Yarns should consider the divergence between the company’s financial growth metrics and its stock price movement, alongside broader market trends and sectoral factors.
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