Shiva Texyarn Ltd Falls to 52-Week Low Amidst Continued Downtrend

Stock Price Movement and Market Context

On 18 Feb 2026, Shiva Texyarn Ltd’s share price opened with a gap up of 5.28%, reaching an intraday high of Rs.176.35. However, the stock experienced high volatility throughout the trading session, ultimately falling sharply to an intraday low of Rs.155.25, a decline of 7.31% from the day’s high. This level represents the lowest price point for the stock in the past 52 weeks.

The stock has been on a downward trajectory for the last two trading days, delivering a cumulative return of -2.82% during this period. Additionally, it underperformed the Garments & Apparels sector by 1.98% today. Notably, the stock did not trade on one day in the last 20 trading sessions, indicating some irregularity in liquidity or trading interest.

From a technical standpoint, Shiva Texyarn is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market, where the Sensex, despite a volatile session, remains only 3.36% below its 52-week high of 86,159.02 and trades below its 50-day moving average but with the 50DMA above the 200DMA, indicating mixed but relatively stronger market conditions.

Financial Performance and Fundamental Indicators

Shiva Texyarn’s financial metrics reveal challenges that have contributed to the stock’s decline. Over the past five years, the company’s net sales have contracted at a compound annual growth rate (CAGR) of -1.84%, reflecting subdued top-line expansion. The latest quarterly results for December 2025 further underscore this trend, with net sales falling by 12.2% to Rs.76.42 crores compared to the previous four-quarter average.

Profitability has also weakened, with the quarterly profit after tax (PAT) plummeting by 59.8% to Rs.1.63 crores relative to the prior four-quarter average. Earnings before interest and taxes (PBT less other income) declined by 18.7% to Rs.2.37 crores in the same period. These figures highlight a contraction in earnings and margin pressures.

The company’s return on equity (ROE) averages a modest 4.38%, indicating limited profitability generated per unit of shareholder funds. Furthermore, the debt servicing capacity is constrained, with a high Debt to EBITDA ratio of 10.25 times, signalling elevated leverage and potential financial strain.

Relative Performance and Valuation Metrics

Over the last year, Shiva Texyarn’s stock has delivered a negative return of -15.34%, significantly underperforming the Sensex, which posted a positive return of 9.73% over the same period. The stock has also lagged behind the BSE500 index across multiple time frames, including the last three years, one year, and three months, reflecting persistent underperformance relative to broader market benchmarks.

Despite these challenges, the company’s return on capital employed (ROCE) stands at a comparatively attractive 9.9%, and it maintains a low enterprise value to capital employed ratio of 1.3. These valuation metrics suggest that the stock is trading at a discount relative to its peers’ historical averages.

Interestingly, while the stock price has declined over the past year, the company’s profits have increased by 45.8%, resulting in a price/earnings to growth (PEG) ratio of 0.3. This divergence between earnings growth and stock price performance highlights a disconnect that may be influenced by other factors such as leverage and market sentiment.

Shareholding and Market Sentiment

The majority shareholding in Shiva Texyarn Ltd remains with the promoters, indicating concentrated ownership. The company’s Mojo Score currently stands at 23.0, with a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating as of 5 Jan 2026. The market capitalisation grade is 4, reflecting its micro-cap status within the Garments & Apparels sector.

On the day of the new 52-week low, the stock’s day change was -2.33%, further emphasising the downward pressure. The stock’s erratic trading pattern, including a non-trading day in the recent past, adds to the uncertainty surrounding its near-term price stability.

Summary of Key Challenges

Shiva Texyarn Ltd’s recent stock performance reflects a combination of subdued revenue growth, declining profitability, and elevated leverage. The company’s net sales and earnings have contracted in the latest quarter, while its long-term sales growth remains negative. The high Debt to EBITDA ratio of 10.25 times indicates significant financial obligations relative to earnings, which may weigh on investor confidence.

Technically, the stock’s position below all major moving averages and its new 52-week low price of Rs.155.25 underscore the prevailing bearish sentiment. The stock’s underperformance relative to sector peers and the broader market further highlights the challenges faced by the company in maintaining investor support.

Nonetheless, valuation metrics such as ROCE and enterprise value to capital employed suggest that the stock is trading at a discount compared to peers, while the increase in profits over the past year contrasts with the declining share price. These factors provide a nuanced picture of the company’s current standing within the Garments & Apparels sector.

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