Super Spinning Mills Falls to 52-Week Low of Rs.7.94 Amidst Prolonged Downtrend

Recent Price Movement and Market Context

On 16 Dec 2025, Super Spinning Mills recorded a fresh 52-week low at Rs.7.94, continuing a three-day losing streak that has resulted in a cumulative return of -5.77% over this period. The stock’s performance today lagged behind the Garments & Apparels sector by 1.79%, signalling relative weakness within its industry peer group. Notably, the share price is trading below all key moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages — underscoring the prevailing bearish momentum.

In contrast, the broader market index, Sensex, experienced a decline of 257.33 points, or 0.52%, closing at 84,768.28. Despite this fall, Sensex remains 1.64% shy of its 52-week high of 86,159.02 and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish trend for the benchmark index. This divergence highlights the relative underperformance of Super Spinning Mills compared to the overall market.

Long-Term and Recent Performance Metrics

Over the past year, Super Spinning Mills has delivered a return of -42.53%, a stark contrast to the Sensex’s positive 3.70% return during the same timeframe. The stock’s 52-week high was Rs.16.50, illustrating a significant depreciation of more than 50% from that peak. This extended period of decline reflects challenges faced by the company in maintaining growth and profitability.

Financially, the company’s net sales have shown a compound annual growth rate (CAGR) of -39.83% over the last five years, indicating a contraction in revenue generation. The company’s ability to service its debt is constrained, with an average EBIT to interest ratio of 0.58, suggesting earnings before interest and tax are insufficient to comfortably cover interest expenses. This financial strain is further evidenced by reported losses and a negative return on equity (ROE), signalling that shareholders’ equity has not generated positive returns.

Valuation and Profitability Considerations

The company’s return on capital employed (ROCE) stands at 5.1%, which, when combined with an enterprise value to capital employed ratio of 0.9, suggests a valuation that is considered very expensive relative to the capital utilised. Despite this, the stock trades at a discount compared to the average historical valuations of its peers in the Garments & Apparels sector.

Interestingly, while the stock has generated negative returns over the past year, the company’s profits have risen by 57.2% during the same period. This disparity between profit growth and share price performance may reflect market concerns about sustainability or other underlying factors affecting investor sentiment.

Comparative Performance and Shareholding Structure

Super Spinning Mills has underperformed the BSE500 index over multiple time horizons, including the last three years, one year, and three months. This consistent lagging performance highlights challenges in both the near and long term.

The majority of the company’s shares are held by non-institutional investors, which may influence trading patterns and liquidity dynamics. The absence of significant institutional ownership could be a factor in the stock’s subdued market activity and price behaviour.

Summary of Key Concerns

The stock’s fall to Rs.7.94 represents a critical technical level, reflecting a culmination of factors including weak long-term sales growth, constrained debt servicing capacity, and negative returns on equity. The company’s valuation metrics indicate a premium on capital employed despite the subdued share price, while profit growth has not translated into positive market performance. The stock’s consistent underperformance relative to major indices and sector peers further emphasises the challenges faced by Super Spinning Mills in regaining investor confidence.

Market Environment and Sectoral Context

While Super Spinning Mills struggles, the broader Garments & Apparels sector and the Sensex index maintain relatively stronger positions. The Sensex’s trading above key moving averages and proximity to its 52-week high contrasts with the stock’s downward trend, highlighting a divergence between the company’s performance and overall market sentiment.

Investors and market participants will continue to monitor the stock’s price action and financial disclosures closely as it navigates this challenging phase.

Only for Rs. 14,999 - Get Access to 2 Years + 6 Months of All Premium Features on MarketsMojo. As low as ₹500/month! Claim 83% OFF →