Intraday Price Movement and Volatility
On 2 January 2026, Scoobee Day Garments India Ltd’s share price fell by 6.79% during the trading session, with an intraday low of Rs.73.5, representing a 9.54% drop from the previous close. This decline followed three consecutive days of gains, signalling a reversal in short-term momentum. The stock exhibited high volatility, with an intraday volatility of 5.43% calculated from the weighted average price, indicating significant price fluctuations throughout the day.
The stock’s performance lagged behind the Garments & Apparels sector, underperforming by 7.62% relative to its peers. This contrasts with the broader market trend, where the Sensex rose by 0.39% to close at 85,520.63 points, approaching its 52-week high of 86,159.02. The Sensex’s bullish stance was supported by its trading above the 50-day moving average, which itself remains above the 200-day moving average, signalling sustained market strength. Mid-cap stocks led the market rally, with the BSE Mid Cap index gaining 0.52% on the day.
Technical Indicators and Moving Averages
Scoobee Day Garments is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the stock’s weak price momentum and the absence of near-term support levels. The breach of these averages often signals bearish sentiment among traders and investors, contributing to the downward pressure on the share price.
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Long-Term Performance and Valuation Metrics
Over the past year, Scoobee Day Garments India Ltd’s stock has declined by 39.57%, a stark contrast to the Sensex’s positive return of 7.00% over the same period. The stock’s 52-week high was Rs.138.64, highlighting the extent of the recent depreciation. This underperformance extends beyond the last year, with the stock lagging the BSE500 index over the last three years, one year, and three months.
The company’s valuation metrics reflect a challenging environment. Despite a return on capital employed (ROCE) of 3.2%, the stock carries an enterprise value to capital employed ratio of 3.4, indicating an expensive valuation relative to its capital base. The price-to-earnings-to-growth (PEG) ratio stands at 9, suggesting that the stock’s price is high relative to its earnings growth prospects.
Financial Health and Profitability Concerns
Scoobee Day Garments India Ltd’s financial fundamentals reveal areas of concern. The company carries a high debt burden, with a debt-to-equity ratio of 14.92 times, signalling significant leverage and potential financial risk. This weak long-term fundamental strength has contributed to the stock’s strong sell rating, as reflected in its Mojo Grade of Strong Sell, downgraded from Sell on 2 September 2025.
Over the last five years, net sales have grown at an annual rate of 19.13%, while operating profit has remained flat, indicating limited improvement in operational profitability. The company’s quarterly financials further illustrate this trend, with operating cash flow at a yearly low of Rs. -4.19 crores and profit after tax (PAT) for the quarter falling by 787.1% to Rs. -2.31 crores compared to the previous four-quarter average. Additionally, the PBDIT for the quarter was at its lowest level of Rs. -2.11 crores.
Shareholding and Market Capitalisation
The majority shareholding of Scoobee Day Garments India Ltd remains with its promoters, maintaining a concentrated ownership structure. The company holds a Market Cap Grade of 4, reflecting its micro-cap status within the Garments & Apparels sector.
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Contextual Market Overview
While Scoobee Day Garments India Ltd’s stock has faced downward pressure, the broader market environment remains relatively positive. The Sensex’s recent gains and proximity to its 52-week high reflect underlying market strength, supported by mid-cap leadership. This divergence highlights the stock’s specific challenges within the Garments & Apparels sector and its individual financial and valuation profile.
Summary of Key Metrics
To summarise, the stock’s new 52-week low of Rs.73.5 comes amid a backdrop of:
- Year-to-date decline of 6.79% on 2 January 2026
- Underperformance relative to sector by 7.62%
- High leverage with debt-to-equity ratio of 14.92 times
- Flat operating profit growth over five years despite sales growth of 19.13% annually
- Negative quarterly PAT and operating cash flow figures
- Trading below all major moving averages
- Mojo Grade downgraded to Strong Sell with a Mojo Score of 23.0
These factors collectively contribute to the stock’s subdued market performance and valuation challenges.
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