Scoobee Day Garments India Ltd Falls to 52-Week Low of Rs.72

Stock Performance and Market Context

On 12 Jan 2026, Scoobee Day Garments India Ltd’s share price touched an intraday low of Rs.72, representing a 5.11% decline on the day. This fall was notably steeper than the Garments & Apparels sector’s performance, where the stock underperformed by 3.94%. The stock is trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In contrast, the broader market showed resilience. The Sensex, after an initial negative opening down by 140.93 points, rebounded to close 314.83 points higher at 83,750.14, up 0.21%. The Sensex remains close to its 52-week high of 86,159.02, just 2.88% away. Mega-cap stocks led this recovery, highlighting a divergence between large-cap market leaders and smaller or mid-cap stocks such as Scoobee Day Garments.

Financial Metrics and Long-Term Trends

The company’s one-year stock performance has been disappointing, with a decline of 35.66%, starkly contrasting with the Sensex’s 8.23% gain over the same period. The stock’s 52-week high was Rs.133.54, underscoring the extent of the recent decline.

Scoobee Day Garments India Ltd’s financial fundamentals have contributed to this trend. The company carries a high debt burden, with a debt-to-equity ratio of 14.92 times, indicating significant leverage and associated financial risk. This elevated debt level has been a key factor in the company’s weak long-term fundamental strength assessment.

Over the past five years, net sales have grown at an annual rate of 19.13%, but operating profit has remained flat, registering 0% growth. This stagnation in profitability despite sales growth points to margin pressures and cost management issues.

Recent Quarterly Results and Profitability

The company’s recent quarterly results have reflected pressures on profitability. The Profit After Tax (PAT) for the latest quarter stood at a loss of Rs.2.31 crore, a steep decline of 787.1% compared to the previous four-quarter average. Operating cash flow for the year was negative at Rs.4.19 crore, the lowest recorded in recent periods. Additionally, the Profit Before Depreciation, Interest and Taxes (PBDIT) for the quarter was Rs.-2.11 crore, marking the lowest level in recent quarters.

These figures highlight challenges in generating positive earnings and cash flows, which have weighed on investor sentiment and contributed to the stock’s decline.

Valuation and Comparative Metrics

Despite the weak price performance, Scoobee Day Garments India Ltd’s valuation metrics suggest a fair valuation relative to its capital employed. The company’s Return on Capital Employed (ROCE) is 3.2%, and the Enterprise Value to Capital Employed ratio stands at 3.3. These figures indicate that the stock is trading at a discount compared to its peers’ average historical valuations.

Interestingly, while the stock price has fallen by 35.66% over the past year, the company’s profits have increased by 34% during the same period. This divergence is reflected in a high Price/Earnings to Growth (PEG) ratio of 8.4, signalling that the market may be pricing in significant risks or uncertainties despite profit growth.

Shareholding and Market Sentiment

The majority shareholding in Scoobee Day Garments India Ltd remains with the promoters, indicating concentrated ownership. This structure can influence strategic decisions and market perceptions of governance and control.

Summary of Key Ratings and Scores

Scoobee Day Garments India Ltd currently holds a Mojo Score of 20.0, with a Mojo Grade of Strong Sell, upgraded from Sell on 2 Sep 2025. The Market Capitalisation Grade is 4, reflecting its mid-tier market cap status. These ratings underscore the cautious stance reflected in the stock’s recent price action and financial profile.

Over the last three years, the stock has underperformed the BSE500 index across multiple time frames, including the last three months, one year, and three years, reinforcing the trend of below-par performance relative to broader market indices.

Conclusion

The decline of Scoobee Day Garments India Ltd to a 52-week low of Rs.72 is the result of a combination of factors including high leverage, flat operating profit growth despite sales increases, and recent quarterly losses. While the broader market and sector have shown resilience, the stock’s underperformance and financial metrics have contributed to its current valuation and rating status. The company’s trading below all major moving averages further reflects the prevailing downward trend in its share price.

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