SP Apparels Ltd. Stock Falls to 52-Week Low Amid Market Downturn

Recent Price Movement and Market Context

On 19 Jan 2026, SP Apparels Ltd. closed near its 52-week low, with the stock price just 0.32% above the lowest level recorded in the past year. The intraday low reached Rs 612, representing a 3.05% decline on the day. This drop extended a three-day losing streak, during which the stock has fallen by 8.66%. The decline outpaced the sector’s performance, underperforming by 1.1% on the same day.

The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum. This technical positioning indicates that the stock has been unable to regain upward traction in the short to medium term.

In comparison, the Nifty index closed at 25,585.50, down 0.42% for the day, and remains 3.08% below its own 52-week high of 26,373.20. While the broader market shows some resilience, the Nifty Small Cap 100 index has declined by 0.99%, dragging down smaller capitalisation stocks, including SP Apparels.

Performance Over the Past Year

SP Apparels Ltd. has experienced a notable underperformance relative to major benchmarks over the last twelve months. The stock has delivered a negative return of 33.92%, in stark contrast to the Sensex’s positive return of 8.65% and the BSE500’s 7.53% gain. This divergence highlights the stock’s relative weakness within the market and its sector.

The 52-week high for SP Apparels was Rs 949.70, indicating a substantial decline of over 35% from that peak to the current 52-week low. This wide price range underscores the volatility and challenges faced by the company’s shares during this period.

Financial Metrics and Operational Highlights

Despite the recent price weakness, SP Apparels Ltd. maintains several positive financial indicators. The company’s ability to service debt remains strong, with a low Debt to EBITDA ratio of 1.26 times, reflecting manageable leverage levels.

Net sales have demonstrated healthy long-term growth, increasing at an annual rate of 21.65%, while operating profit has grown at an even higher rate of 28.27%. These figures suggest that the company’s core business continues to expand steadily.

In the half-year ended September 2025, the company reported a Return on Capital Employed (ROCE) of 14.54%, its highest to date, indicating efficient utilisation of capital. Quarterly Profit After Tax (PAT) stood at Rs 34.71 crores, marking a robust growth of 58.1% compared to previous periods.

Additionally, the Debtors Turnover Ratio reached a peak of 6.87 times in the half-year, signalling effective management of receivables and cash flow.

Valuation metrics also reflect an attractive profile, with an Enterprise Value to Capital Employed ratio of 1.6, which is lower than the average historical valuations of its peers. The company’s PEG ratio stands at 0.5, indicating that profit growth has outpaced the decline in stock price over the past year.

Institutional investors hold a significant stake of 21.28%, suggesting confidence from entities with extensive analytical resources.

Sector and Market Segment Performance

The Garments & Apparels sector, to which SP Apparels belongs, has faced headwinds in recent months, contributing to the stock’s underperformance. The broader market segments have also been under pressure, with all market capitalisation segments showing declines. Small-cap stocks, in particular, have been a drag on the market, as evidenced by the Nifty Small Cap 100’s near 1% fall.

SP Apparels’ market capitalisation grade is rated at 3, reflecting its position within the mid to small-cap range, which often experiences higher volatility and sensitivity to market fluctuations.

Rating and Recent Changes

MarketsMOJO currently assigns SP Apparels Ltd. a Mojo Score of 53.0 and a Mojo Grade of Hold, reflecting a cautious stance given the recent price trends and market conditions. This represents a downgrade from the previous Buy rating, which was changed on 24 Nov 2025. The Hold rating indicates that while the company retains solid fundamentals, the stock’s recent performance and valuation dynamics warrant a more measured outlook.

The stock’s day change of -3.05% on 19 Jan 2026 further emphasises the ongoing pressure on the share price, consistent with the broader market and sectoral declines.

Summary of Key Data Points

• 52-week low price: Rs 610.05

• 52-week high price: Rs 949.70

• Current price proximity to 52-week low: 0.32%

• Three-day consecutive decline: -8.66% total return

• Debt to EBITDA ratio: 1.26 times

• Annual net sales growth: 21.65%

• Annual operating profit growth: 28.27%

• ROCE (HY): 14.54%

• Quarterly PAT: Rs 34.71 crores, up 58.1%

• Debtors Turnover Ratio (HY): 6.87 times

• PEG ratio: 0.5

• Institutional holdings: 21.28%

• Mojo Grade: Hold (downgraded from Buy on 24 Nov 2025)

• Market Cap Grade: 3

• Day’s low on 19 Jan 2026: Rs 612 (-3.05%)

Conclusion

SP Apparels Ltd.’s recent fall to its 52-week low price level reflects a period of price weakness amid a challenging market environment for small-cap stocks and the Garments & Apparels sector. While the stock has underperformed the broader market indices over the past year, the company’s financial metrics reveal ongoing growth in sales and profits, alongside strong capital efficiency and manageable debt levels. The downgrade to a Hold rating by MarketsMOJO aligns with the current valuation and price trends, signalling a cautious stance despite the company’s underlying operational strengths.

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