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

Stock Price Movement and Market Context

On 22 Jan 2026, Shiva Texyarn Ltd’s share price approached its 52-week low, closing just 3.65% above the lowest price of Rs 157.15 recorded over the past year. The stock underperformed its sector peers, declining by 0.55% on the day, while the broader Textile sector gained 2.14%. This underperformance is further highlighted by the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

In comparison, the Nifty index closed at 25,289.90, up 0.53% on the day, remaining 4.28% below its 52-week high of 26,373.20. Notably, all market capitalisation segments showed gains, with the Nifty Midcap 100 index leading with a 1.34% increase, underscoring the relative weakness of Shiva Texyarn’s stock within the current market environment.

Financial Performance and Long-Term Trends

Shiva Texyarn Ltd’s financial metrics reveal a challenging backdrop. Over the last five years, the company has experienced a negative compound annual growth rate (CAGR) of -4.43% in net sales, indicating a contraction in revenue generation. This weak long-term growth has contributed to the stock’s poor performance, with a one-year return of -27.15%, significantly lagging behind the Sensex’s positive 7.73% return over the same period.

The stock’s 52-week high was Rs 273.59, illustrating a substantial decline of over 42% from that peak. Additionally, the company has underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, reflecting persistent challenges in maintaining competitive performance.

Profitability and Debt Metrics

The company’s profitability indicators remain subdued. Shiva Texyarn has generated an average Return on Equity (ROE) of 4.38%, signalling limited profitability relative to shareholders’ funds. Furthermore, the company’s ability to service debt is constrained, with a high Debt to EBITDA ratio of 10.25 times, indicating significant leverage and potential pressure on cash flows.

Despite these concerns, the company has reported positive quarterly results over the last five consecutive quarters. The Profit Before Tax excluding other income (PBT LESS OI) for the most recent quarter stood at Rs 6.27 crore, reflecting a robust growth rate of 193.3% compared to the previous four-quarter average. Operating profit to interest coverage ratio reached a high of 3.95 times, suggesting improved capacity to meet interest obligations in the short term.

Recent Quarterly Performance

Net profit after tax (PAT) for the latest quarter was Rs 5.82 crore, marking a 76.8% increase relative to the prior four-quarter average. The company’s Return on Capital Employed (ROCE) stands at 9.9%, which is considered attractive in valuation terms. Correspondingly, the enterprise value to capital employed ratio is 1.3, indicating that the stock is trading at a discount compared to its peers’ historical valuations.

Over the past year, while the stock price has declined by 27.15%, the company’s profits have surged by 776.8%, resulting in a PEG ratio of zero. This divergence between earnings growth and stock price performance highlights a disconnect that may be influenced by broader market sentiment and structural factors within the company’s sector.

Shareholding and Market Grade

Promoters remain the majority shareholders of Shiva Texyarn Ltd, maintaining significant control over the company’s strategic direction. The stock currently holds a Mojo Score of 32.0, with a Mojo Grade of Sell as of 5 Jan 2026, reflecting a downgrade from the previous Strong Sell rating. The market capitalisation grade is 4, indicating a mid-tier valuation within its segment.

Sector and Market Comparison

Within the Garments & Apparels sector, Shiva Texyarn’s recent performance contrasts with the broader textile industry’s gains. The sector’s positive momentum, with a 2.14% increase on the day, underscores the stock’s relative weakness. The company’s stock price remains significantly below its 52-week high, and the underperformance relative to sector and market indices suggests ongoing challenges in regaining investor confidence.

Technical indicators reinforce this trend, with the stock trading below all major moving averages, a signal often interpreted as bearish in market analysis. The stock’s day change of -0.55% further emphasises the subdued sentiment surrounding the company’s shares.

Summary of Key Financial Indicators

To summarise, Shiva Texyarn Ltd’s key financial and market metrics as of January 2026 include:

• 52-week low price: Rs 157.15 (stock close within 3.65% of this low)
• One-year stock return: -27.15%
• Five-year net sales CAGR: -4.43%
• Debt to EBITDA ratio: 10.25 times
• Average Return on Equity: 4.38%
• Latest quarterly PBT LESS OI: Rs 6.27 crore (193.3% growth)
• Operating profit to interest coverage: 3.95 times
• Latest quarterly PAT: Rs 5.82 crore (76.8% growth)
• Return on Capital Employed: 9.9%
• Enterprise value to capital employed: 1.3
• Mojo Score: 32.0 (Mojo Grade: Sell, downgraded from Strong Sell on 5 Jan 2026)

These figures illustrate a complex picture where improving profitability metrics coexist with a declining stock price and weak long-term growth trends.

Conclusion

Shiva Texyarn Ltd’s fall to its 52-week low reflects a combination of subdued long-term growth, high leverage, and relative underperformance against sector and market benchmarks. While recent quarterly results show encouraging profit growth and improved interest coverage, the stock’s technical indicators and valuation metrics continue to signal caution. The company’s current market grade and Mojo Score further underline the challenges faced in reversing the downward trend in share price.

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