Key Events This Week
2 Feb: Stock drops 4.45% to Rs.161.00 amid broader market weakness
3 Feb: Sharp rebound with 12.76% gain to Rs.181.55, outpacing Sensex rally
5 Feb: Q3 FY26 results reveal 72% profit plunge despite stable margins
6 Feb: Flat quarterly performance report highlights margin pressures; stock closes at Rs.174.00 (-0.40%)
2 February: Market Weakness Hits Shiva Texyarn
Shiva Texyarn opened the week on a weak note, falling 4.45% to close at Rs.161.00, underperforming the Sensex which declined 1.03%. The drop reflected broader market concerns and initial investor caution ahead of the company’s quarterly results. Trading volume was relatively low at 100 shares, indicating subdued participation amid the decline.
3 February: Sharp Rebound on Positive Market Sentiment
The stock staged a remarkable recovery on 3 February, surging 12.76% to Rs.181.55, significantly outperforming the Sensex’s 2.63% gain. This sharp bounce was driven by renewed buying interest and optimism following the market rally. Volume surged to 2,973 shares, signalling strong investor engagement. Despite this rebound, the stock remained volatile, setting the week’s high but unable to sustain the momentum in subsequent sessions.
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4 February: Profit Taking and Minor Correction
Following the strong rally, Shiva Texyarn experienced a mild correction on 4 February, slipping 1.40% to Rs.179.00. The Sensex continued its upward trajectory with a 0.37% gain. The stock’s volume dropped to 650 shares, indicating some profit booking by short-term traders. This pullback was a natural consolidation after the previous day’s sharp gains.
5 February: Quarterly Results Disappoint, Profit Plunges 72%
On 5 February, Shiva Texyarn released its Q3 FY26 results, revealing a steep 72% plunge in profit despite stable margins. The stock reacted negatively, falling 2.40% to Rs.174.70 on low volume of 157 shares. The results showed a significant contraction in profitability, with profit after tax dropping sharply to Rs.1.63 crores. This disappointing performance contrasted with the company’s earlier positive growth trend and raised concerns about operational challenges and margin pressures.
6 February: Flat Quarterly Performance Amid Margin Pressures
The company’s follow-up report on 6 February confirmed a flat quarterly financial trend, highlighting margin pressures and a decline in net sales by 12.2% to Rs.76.42 crores. The stock closed marginally down 0.40% at Rs.174.00 on thin volume of 75 shares. Despite some operational efficiencies such as improved ROCE of 10.80% and a conservative debt-equity ratio of 0.73, the deteriorating debtor turnover ratio and subdued earnings per share of Rs.1.26 underscored ongoing challenges.
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| Date | Stock Price | Day Change | Sensex | Day Change |
|---|---|---|---|---|
| 2026-02-02 | Rs.161.00 | -4.45% | 35,814.09 | -1.03% |
| 2026-02-03 | Rs.181.55 | +12.76% | 36,755.96 | +2.63% |
| 2026-02-04 | Rs.179.00 | -1.40% | 36,890.21 | +0.37% |
| 2026-02-05 | Rs.174.70 | -2.40% | 36,695.11 | -0.53% |
| 2026-02-06 | Rs.174.00 | -0.40% | 36,730.20 | +0.10% |
Key Takeaways
Shiva Texyarn’s week was characterised by significant volatility, with a strong intraday rebound offset by disappointing quarterly results. The 3.26% weekly gain outpaced the Sensex’s 1.51% rise, reflecting resilience despite operational headwinds. However, the 72% plunge in quarterly profit and flat financial trend highlight margin pressures and revenue contraction that may weigh on near-term performance.
Operationally, the company’s improved ROCE and reduced debt-equity ratio provide some stability, but the weakening debtor turnover ratio signals potential liquidity challenges. The downgrade to a Strong Sell rating underscores growing investor caution amid these mixed signals.
Investors should note the stock’s sharp price swings and subdued earnings growth, which contrast with the broader market’s steady gains. The sectoral pressures in Garments & Apparels, including raw material cost fluctuations and competitive pricing, remain key challenges for Shiva Texyarn’s recovery prospects.
Overall, the week’s developments suggest a cautious stance as the company navigates margin pressures and operational challenges, despite pockets of capital efficiency and conservative leverage.
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