Stock Performance and Market Context
On 6 Feb 2026, Sreeleathers Ltd. touched an intraday low of Rs.207.1, representing a 2.56% drop during the trading session. The stock has been on a losing streak for two consecutive days, delivering a cumulative return of -4.98% over this period. This decline contrasts with the broader market, where the Sensex rose by 0.32% to close at 83,580.40, edging closer to its 52-week high of 86,159.02, just 3.09% away.
Despite the positive momentum in mega-cap stocks leading the Sensex rally, Sreeleathers has lagged behind, underperforming its footwear sector by 0.29% today. The stock currently trades below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling a persistent bearish trend.
Financial Metrics and Profitability Concerns
One of the critical factors weighing on Sreeleathers is its modest return on equity (ROE), which stands at 5.76%. This figure indicates limited profitability generated from shareholders’ funds, a concern for investors seeking efficient capital utilisation. The company’s average ROE over recent periods remains subdued, reflecting challenges in generating robust earnings growth.
Operating profit growth has been moderate, with a compound annual growth rate of 10.77% over the past five years. However, this growth rate has not translated into significant stock appreciation, as evidenced by the 52-week high of Rs.283 compared to the current low of Rs.207.1.
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Valuation and Market Sentiment
Sreeleathers is currently trading at a price-to-book (P/B) ratio of 1, which is considered expensive relative to its peers’ historical valuations. This premium valuation is notable given the company’s modest profitability and growth metrics. The price-to-earnings growth (PEG) ratio stands at 13.5, underscoring the disparity between the stock price and earnings growth potential.
Over the past year, the stock has delivered a negative return of -14.74%, significantly underperforming the Sensex, which posted a 7.07% gain during the same period. This underperformance extends to longer timeframes as well, with Sreeleathers lagging behind the BSE500 index over the last three years, one year, and three months.
Cash Flow and Debt Profile
Operating cash flow for the fiscal year remains at a low Rs.27.27 crores, indicating limited cash generation from core business activities. On a positive note, the company maintains a low debt-to-equity ratio, averaging zero, which suggests a conservative capital structure with minimal reliance on external borrowings.
Shareholding and Management
The majority shareholding is held by promoters, reflecting concentrated ownership. Despite this, the company’s management efficiency has been rated poorly, contributing to the current market sentiment and the stock’s subdued performance.
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Mojo Score and Ratings
Sreeleathers Ltd. holds a Mojo Score of 31.0, with a current Mojo Grade of Sell. This represents a downgrade from its previous Strong Sell rating as of 1 Aug 2025. The market capitalisation grade is rated at 4, indicating a relatively small market cap within its sector. These ratings reflect the company’s ongoing challenges in delivering consistent returns and maintaining investor confidence.
Summary of Key Price and Performance Data
The stock’s 52-week high was Rs.283, while the newly established 52-week low is Rs.207.1. The recent two-day decline of nearly 5% and the current trading below all major moving averages highlight the prevailing bearish momentum. In contrast, the Sensex’s positive trajectory and mega-cap leadership underscore the divergence between Sreeleathers and broader market trends.
Conclusion
Sreeleathers Ltd.’s fall to a 52-week low of Rs.207.1 is a culmination of subdued profitability, modest growth rates, and valuation concerns. Despite a conservative debt profile and promoter backing, the stock’s performance has lagged behind sector peers and market benchmarks. The downgrade in Mojo Grade to Sell further emphasises the cautious stance reflected in the stock’s price action and financial metrics.
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