Recent Price Movement and Market Context
On 20 Jan 2026, SP Apparels Ltd. closed at Rs.601, the lowest level in the past year, down 1.00% on the day. This decline aligns with the sector’s overall performance, which remained subdued. The stock 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.
The broader market environment has also been challenging. The Sensex opened flat but slipped by 320.54 points, or 0.43%, to close at 82,886.84. This marks a third consecutive weekly decline for the index, which has lost 3.35% over the last three weeks. Despite this, the Sensex remains within 3.95% of its 52-week high of 86,159.02, reflecting some resilience at the benchmark level.
Performance Comparison and Historical Context
SP Apparels Ltd. has underperformed significantly relative to the broader market over the past year. While the Sensex and BSE500 indices have generated returns of 7.54% and 6.15% respectively, SP Apparels has delivered a negative return of -32.31%. The stock’s 52-week high was Rs.990, indicating a substantial correction of approximately 39.2% from that peak.
This underperformance is notable given the company’s sector, which has faced mixed conditions but has not seen such pronounced declines across all constituents. The stock’s sustained fall over recent sessions has contributed materially to this year-long negative trend.
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Financial Metrics and Valuation Insights
Despite the recent price weakness, SP Apparels Ltd. maintains several positive financial indicators. The company’s Debt to EBITDA ratio stands at a low 1.26 times, reflecting a strong capacity to service debt obligations. This is a key factor supporting the company’s credit profile and financial stability.
Long-term growth remains healthy, with net sales expanding at an annualised rate of 21.65% and operating profit growing at 28.27%. The company reported a return on capital employed (ROCE) of 14.54% in the half-year ended September 2025, which is considered robust within the sector. Additionally, quarterly profit after tax (PAT) rose by 58.1% to Rs.34.71 crores, underscoring operational profitability despite the stock’s price decline.
SP Apparels also exhibits a strong debtor turnover ratio of 6.87 times, indicating efficient management of receivables. The enterprise value to capital employed ratio is 1.5, suggesting an attractive valuation relative to the company’s capital base. The PEG ratio of 0.5 further highlights that the stock’s price decline has outpaced earnings growth, resulting in a valuation discount compared to peers.
Shareholding and Market Sentiment
Institutional investors hold a significant 21.28% stake in SP Apparels Ltd., reflecting confidence from entities with extensive analytical resources. This level of institutional ownership often provides a degree of stability in shareholding patterns, even amid price volatility.
The company’s Mojo Score currently stands at 53.0, with a Mojo Grade of Hold, downgraded from Buy on 24 Nov 2025. The market capitalisation grade is 3, indicating a mid-tier valuation relative to market peers. These ratings reflect a cautious stance given recent price trends, balanced by the company’s underlying financial strength.
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Sectoral and Broader Market Influences
The Garments & Apparels sector has experienced mixed performance, with some companies maintaining steady growth while others face pricing pressures and demand fluctuations. SP Apparels’ recent price movement reflects a combination of sectoral softness and broader market volatility.
While the Sensex remains below its 50-day moving average, the 50DMA itself is above the 200DMA, indicating a complex market environment with short-term weakness amid longer-term support. This backdrop has contributed to cautious sentiment across mid-cap and small-cap stocks, including SP Apparels.
Summary of Key Price and Performance Indicators
To summarise, SP Apparels Ltd. has seen its stock price decline to Rs.601, a 52-week low, following a four-day losing streak and a cumulative fall of 9.52%. The stock trades below all major moving averages and has underperformed the Sensex and BSE500 indices over the past year. Despite this, the company’s financial fundamentals remain sound, with strong growth in sales and profits, low leverage, and efficient asset utilisation.
These factors contribute to the current Hold rating and Mojo Grade of 53.0, reflecting a balanced view of the company’s valuation and performance metrics amid prevailing market conditions.
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