Scoobee Day Garments India Falls to 52-Week Low of Rs.76.51

Stock Price Movement and Market Context

On 19 Dec 2025, Scoobee Day Garments India’s share price touched Rs.76.51, the lowest level recorded in the past year. This price point represents a substantial reduction from its 52-week high of Rs.143.44. Over the last five trading sessions, the stock has recorded a cumulative return of approximately -6%, underperforming its sector by 1.52% on the day of the new low. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a sustained downward trend.

In contrast, the broader market has shown resilience. The Sensex opened 274.98 points higher and was trading at 84,868.81, up 0.46% on the day. The index remains close to its 52-week high of 86,159.02, supported by mega-cap stocks and a bullish alignment of its 50-day and 200-day moving averages. This divergence highlights the relative weakness of Scoobee Day Garments India within the current market environment.

Financial Performance and Debt Profile

The company’s financial data over recent periods reveals several factors contributing to the subdued stock performance. Scoobee Day Garments India’s net sales have shown an annual growth rate of 19.13% over the last five years, while operating profit has remained flat during the same period. This stagnation in profitability contrasts with the sales growth, suggesting margin pressures or cost inefficiencies.

Debt levels remain a significant concern. The company’s debt-to-equity ratio stands at a high 14.92 times, indicating a leveraged capital structure. This elevated debt burden is reflected in the company’s cash flow metrics, with operating cash flow for the year reported at a negative Rs.4.19 crores. Quarterly profit after tax (PAT) has also shown a marked decline, with the latest quarter recording a loss of Rs.2.31 crores, representing a fall of 787.1% compared to the previous four-quarter average. Similarly, the PBDIT for the quarter was at a low of Rs. -2.11 crores.

Long-Term and Recent Returns

Over the past year, Scoobee Day Garments India’s stock has delivered a return of -40.31%, significantly lagging behind the Sensex’s 7.08% gain during the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This underperformance underscores the challenges faced by the company in maintaining investor confidence and market valuation.

Valuation and Profitability Metrics

Despite the challenges, the company’s return on capital employed (ROCE) is reported at 3.2%, which, while modest, suggests some level of capital efficiency. The enterprise value to capital employed ratio stands at 3.3, indicating a valuation that is fair relative to the company’s capital base. The stock is trading at a discount compared to the average historical valuations of its peers in the garments and apparels sector.

Interestingly, while the stock price has declined sharply, the company’s profits have risen by 34% over the past year. This divergence is reflected in a price/earnings to growth (PEG) ratio of 8.6, which may indicate that the market is pricing in risks beyond current profitability trends.

Shareholding and Sector Position

The majority shareholding in Scoobee Day Garments India remains with the promoters, reflecting concentrated ownership. The company operates within the garments and apparels industry, a sector that has experienced mixed performance amid evolving consumer trends and competitive pressures.

Summary of Key Concerns

The stock’s decline to a 52-week low is influenced by several factors: a high debt load relative to equity, flat operating profit growth despite sales expansion, negative operating cash flows, and recent quarterly losses. These elements have contributed to the stock trading below all major moving averages and underperforming both its sector and broader market indices.

Market Environment and Comparative Analysis

While Scoobee Day Garments India faces headwinds, the broader market environment remains positive. The Sensex’s proximity to its 52-week high and its bullish technical indicators contrast with the stock’s downward trajectory. Mega-cap stocks are leading the market gains, highlighting a divergence between large-cap and smaller-cap or sector-specific stocks such as Scoobee Day Garments India.

Investors analysing the garments and apparels sector may note that Scoobee Day Garments India is trading at a discount relative to its peers’ historical valuations, despite the recent profit growth. This valuation gap reflects the market’s assessment of the company’s financial structure and recent performance trends.

Conclusion

Scoobee Day Garments India’s fall to Rs.76.51 marks a notable low point in its share price over the past year. The stock’s performance is shaped by a combination of financial metrics, including high leverage, subdued profitability growth, and recent quarterly losses. These factors have contributed to the stock’s underperformance relative to the broader market and its sector peers, even as the Sensex trades near annual highs.

Market participants monitoring the garments and apparels sector will observe how these dynamics evolve in the coming periods, particularly in relation to the company’s financial health and sector trends.

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