Akar Auto Industries Ltd Stock Falls to 52-Week Low of Rs.85.3

Recent Price Movement and Market Context

On 30 Jan 2026, Akar Auto Industries Ltd’s stock price touched Rs.85.3, its lowest level in the past 52 weeks. This decline comes after two consecutive days of losses, during which the stock has fallen by 8.43%. The day’s performance saw the share price decrease by 0.86%, underperforming the Auto Components & Equipments sector by 1.6%. 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.

In comparison, the Sensex opened lower at 81,947.31 points, down 619.06 points (-0.75%) and was trading at 82,052.27 points (-0.62%) during the same session. While the Sensex itself is below its 50-day moving average, its 50DMA remains above the 200DMA, indicating a mixed market environment.

Long-Term and Recent Performance Analysis

Over the last year, Akar Auto Industries Ltd has delivered a negative return of 28.26%, significantly lagging behind the Sensex’s positive 6.89% gain. The stock’s 52-week high was Rs.204.6, highlighting the extent of the decline from its peak. Additionally, the company has underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent challenges in maintaining competitive returns.

Financial Metrics and Profitability Trends

The company’s recent quarterly results have reflected a decline in key financial indicators. For the quarter ending September 2025, net sales stood at Rs.87.27 crores, down 6.3% compared to the previous four-quarter average. Profit after tax (PAT) was reported at Rs.0.54 crore, a sharp fall of 67.9% relative to the prior four-quarter average. Earnings before interest, depreciation, and taxes (PBDIT) reached a low of Rs.5.42 crore, underscoring the subdued profitability during the period.

These figures contribute to the company’s current Mojo Score of 31.0 and a Mojo Grade of Sell, downgraded from Hold as of 29 Dec 2025. The downgrade reflects concerns about the company’s ability to generate consistent earnings and manage its financial obligations effectively.

Debt Servicing and Valuation Considerations

Akar Auto Industries Ltd’s debt servicing capacity remains a key area of concern. The company’s Debt to EBITDA ratio stands at 3.95 times, indicating a relatively high leverage level that may constrain financial flexibility. This elevated ratio suggests challenges in comfortably meeting debt obligations from operating earnings.

Despite these concerns, the company maintains a return on capital employed (ROCE) of 18.2%, which is considered attractive. Its enterprise value to capital employed ratio is 1.4, signalling a valuation discount relative to peers’ historical averages. This valuation gap reflects market caution amid the company’s recent performance trends.

Industry Position and Shareholding Structure

Akar Auto Industries Ltd operates within the Auto Components & Equipments sector, a segment that has experienced varied performance across companies in recent months. The stock’s underperformance relative to sector peers highlights specific challenges faced by the company.

The majority shareholding is held by promoters, which typically provides stability in ownership. However, the stock’s current market cap grade is 4, indicating a smaller market capitalisation relative to larger peers in the sector.

Growth Trends and Profitability Over Time

While recent quarters have shown declines, the company has demonstrated healthy long-term growth in operating profit, with an annual growth rate of 84.45%. This indicates that despite short-term setbacks, the company has been able to expand its core earnings base over a longer horizon.

However, over the past year, profits have decreased by 13.3%, reflecting the impact of recent market and business conditions. This decline in profitability has contributed to the stock’s downward trajectory and its current valuation levels.

Summary of Key Performance Indicators

To summarise, Akar Auto Industries Ltd’s stock has reached a 52-week low of Rs.85.3 amid a backdrop of subdued sales, sharply reduced profits, and elevated leverage. The stock’s performance over the past year has been notably weaker than the broader market and sector indices. While the company retains some attractive valuation metrics and long-term growth in operating profit, recent quarterly results and financial ratios have weighed on investor sentiment.

Market participants will note the stock’s current Mojo Grade of Sell and the downgrade from Hold at the end of 2025, reflecting a reassessment of the company’s near-term prospects based on available data.

Unlock special upgrade rates for a limited period. Start Saving Now →