Shiva Mills Stock Falls to 52-Week Low of Rs.52.6 Amidst Continued Underperformance

Intraday Price Movement and Volatility

On 3 December 2025, Shiva Mills opened with a gap down of 7.38%, signalling a bearish sentiment from the outset. The stock experienced heightened volatility throughout the trading session, with an intraday price range reflecting a 7.14% weighted average volatility. The intraday low of Rs.52.6 represents a 17.98% decline from the previous close, underscoring the sharp downward momentum. This level is the lowest the stock has traded at in the past year, a notable milestone given the stock’s 52-week high of Rs.115.86.

Comparison with Sector and Market Indices

Shiva Mills underperformed its sector peers by 1.32% on the day, while the broader market, represented by the Sensex, declined by 0.42%. Despite the Sensex trading near its 52-week high, just 1.62% shy of 86,159.02, Shiva Mills’ stock price trajectory diverges markedly from the overall market trend. The Sensex’s position above its 50-day and 200-day moving averages contrasts with Shiva Mills trading below all major moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward pressure on the stock.

Long-Term Performance and Financial Indicators

Over the past year, Shiva Mills has recorded a return of -35.43%, significantly underperforming the Sensex, which posted a positive return of 4.87% during the same period. This underperformance extends over multiple years, with the stock lagging behind the BSE500 index in each of the last three annual periods. The company’s financial results have mirrored this trend, with net sales for the latest quarter reported at Rs.30.44 crores, the lowest in recent periods.

Profitability and Returns

Shiva Mills’ average return on equity (ROE) stands at 5.64%, indicating modest profitability relative to shareholders’ funds. The company’s operating profits have shown a compound annual growth rate (CAGR) of -210.36% over the last five years, reflecting a contraction in earnings capacity. The most recent results for the quarter ending September 2025 revealed negative operating profits, contributing to the stock’s classification as a higher-risk investment relative to its historical valuation norms.

Dividend and Payout Metrics

The dividend per share (DPS) for the year remains at Rs.0.00, with a dividend payout ratio (DPR) also at 0.00%, signalling an absence of shareholder returns through dividends in the current financial year. This lack of dividend distribution aligns with the company’s constrained profitability and cash flow position.

Shareholding and Market Capitalisation

The majority shareholding in Shiva Mills is held by promoters, maintaining a controlling interest in the company. The market capitalisation grade assigned to the stock is moderate, reflecting its micro-cap status within the garments and apparels sector.

Market Context and Sector Dynamics

The garments and apparels sector has faced a mixed environment, with some companies managing to sustain growth while others, including Shiva Mills, have encountered headwinds. The stock’s performance relative to the sector and broader market indices highlights the challenges faced by the company in maintaining competitive positioning and financial stability.

Summary of Key Price and Performance Metrics

To summarise, Shiva Mills’ stock price has declined to Rs.52.6, the lowest level in the past 52 weeks, representing a significant retracement from its peak of Rs.115.86. The stock’s one-year return of -35.43% contrasts with the Sensex’s positive 4.87% return, emphasising the stock’s relative weakness. The company’s financial indicators, including net sales, operating profits, and return on equity, reflect ongoing pressures that have influenced the stock’s valuation and market sentiment.

Technical Indicators and Moving Averages

From a technical perspective, Shiva Mills is trading below all major moving averages, including the short-term 5-day and 20-day averages as well as the longer-term 50-day, 100-day, and 200-day averages. This positioning suggests a sustained downtrend in the stock price over multiple time horizons. The intraday volatility of 7.14% further illustrates the stock’s sensitivity to market fluctuations and investor sentiment on the trading day.

Conclusion

Shiva Mills’ fall to a 52-week low of Rs.52.6 marks a continuation of a challenging period for the company within the garments and apparels sector. The stock’s performance, financial metrics, and technical indicators collectively depict a scenario of subdued market confidence and constrained earnings capacity. While the broader market and sector indices have shown resilience, Shiva Mills remains on a distinct trajectory characterised by underperformance and valuation pressures.

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