Harrisons Malayalam Reports Strong Profit Growth Amid Long-Term Financial Challenges

Harrisons Malayalam, a microcap player in the Tea/Coffee industry, has recently undergone an evaluation adjustment that reflects its current financial standing. The company reported very positive financial performance for the quarter ending December 2024, showcasing a significant growth in net profit of 172.51%. This performance is underscored by a notable increase in operating profit to interest, which reached its highest level at 3.87 times, alongside record net sales of Rs 142.25 crore and PBDIT of Rs 13.84 crore.
Despite these positive indicators, the company faces challenges in long-term fundamental strength, evidenced by a -9.13% CAGR growth in operating profits over the past five years. Additionally, Harrisons Malayalam's ability to service its debt is constrained by a high Debt to EBITDA ratio of 4.53 times. The stock is currently positioned within a bearish technical range, with various indicators suggesting a downward trend.

While the stock has generated a return of 13.46% over the past year, significantly outperforming the broader market, its valuation metrics indicate a complex financial landscape. The company’s ROCE stands at 2.7, and it has an enterprise value to capital employed ratio of 1.9, suggesting an expensive valuation relative to its peers.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.