Scoobee Day Garments India Ltd Hits 52-Week Low Amidst Continued Downtrend

Stock Price Movement and Market Context

On 20 Jan 2026, Scoobee Day Garments India Ltd’s share price touched an intraday low of Rs.61.95, representing a 10.0% drop within the trading session. The stock closed with a day change of -7.02%, underperforming its sector, which itself declined by -2.44%. Over the past four consecutive trading days, the stock has lost -13.55% in value, highlighting sustained selling pressure. Intraday volatility was notably high at 6.02%, calculated from the weighted average price, underscoring the stock’s unsettled trading environment.

The broader market context was also challenging. The Sensex opened flat but subsequently fell sharply by 849.68 points, or -1.07%, closing at 82,357.70. This marked the third consecutive weekly decline for the index, which has lost -3.97% over the last three weeks. Despite this, the Sensex remains 4.62% below its 52-week high of 86,159.02, with its 50-day moving average still above the 200-day moving average, indicating some underlying resilience in the benchmark.

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 suggests a bearish trend across short, medium, and long-term timeframes. The stock’s 52-week high stands at Rs.133.54, indicating a substantial decline of over 53% from that peak.

Financial Performance and Fundamental Metrics

The company’s financial health remains a concern, reflected in its Mojo Score of 20.0 and a Mojo Grade of Strong Sell, upgraded from Sell on 2 Sep 2025. The market capitalisation grade stands at 4, indicating a relatively small market cap within its peer group.

Scoobee Day Garments has a high debt burden, with a debt-to-equity ratio of 14.92 times, signalling significant leverage and potential financial strain. Over the past five years, net sales have grown at an annual rate of 19.13%, but operating profit has remained flat at 0%, indicating limited improvement in operational profitability.

Recent quarterly results have been subdued. Operating cash flow for the year was negative at Rs. -4.19 crores, while profit before tax excluding other income fell drastically by 3602.7% to Rs. -3.24 crores compared to the previous four-quarter average. Net profit after tax also declined sharply by 787.1% to Rs. -2.31 crores in the latest quarter.

Long-Term and Short-Term Performance Trends

Over the last year, the stock has delivered a negative return of -46.61%, significantly underperforming the Sensex, which gained 6.74% during the same period. The stock has also lagged behind the BSE500 index over the last three years, one year, and three months, reflecting persistent underperformance relative to broader market benchmarks.

Despite the negative price performance, the company’s profits have increased by 34% over the past year, resulting in a high PEG ratio of 7.8. This disparity between profit growth and share price performance suggests market concerns about sustainability and valuation.

Valuation and Return Metrics

Scoobee Day Garments’ return on capital employed (ROCE) is 3.2%, which is modest and indicates limited efficiency in generating returns from capital invested. The enterprise value to capital employed ratio stands at 3.1, suggesting a fair valuation relative to the company’s capital base. The stock is currently trading at a discount compared to its peers’ average historical valuations, which may reflect the market’s cautious stance given the company’s financial profile.

Shareholding and Sectoral Context

The majority shareholding is held by promoters, indicating concentrated ownership. The company operates within the Garments & Apparels sector, which has experienced some pressure alongside the broader market. The sector’s recent decline of -2.44% contrasts with the sharper fall in Scoobee Day Garments’ share price, highlighting company-specific factors contributing to the stock’s weakness.

Summary of Key Concerns

The stock’s fall to Rs.61.95 represents a significant technical and psychological level, marking the lowest price in the past 52 weeks. This decline is underpinned by a combination of high leverage, subdued profitability, and weak recent financial results. The company’s negative operating cash flow and sharply declining quarterly profits have weighed on investor sentiment, despite some growth in annual profits.

Additionally, the stock’s consistent underperformance relative to the Sensex and BSE500 indices over multiple time horizons highlights ongoing challenges in delivering shareholder value. The technical indicators, including trading below all major moving averages and high intraday volatility, further illustrate the stock’s fragile position in the current market environment.

Market and Sector Dynamics

The broader market weakness, as evidenced by the Sensex’s recent declines and the Garments & Apparels sector’s underperformance, has compounded pressure on Scoobee Day Garments’ share price. While the Sensex remains below its 50-day moving average, the 50DMA itself is above the 200DMA, suggesting some underlying market support. However, the stock’s sharper decline relative to its sector peers indicates company-specific factors are playing a significant role in its price movement.

Conclusion

Scoobee Day Garments India Ltd’s new 52-week low at Rs.61.95 reflects a confluence of financial and market pressures. The company’s high debt levels, flat operating profit growth, and recent quarterly losses have contributed to a challenging valuation environment. The stock’s technical positioning and relative underperformance within its sector and the broader market underscore the difficulties faced by the company in recent months.

Investors and market participants will continue to monitor the company’s financial metrics and market developments closely as the stock navigates this low price territory.

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