Andrew Yule & Company Ltd Falls to 52-Week Low of Rs.21.7

Stock Price Movement and Market Context

On the day the new low was recorded, Andrew Yule & Company Ltd’s stock underperformed its sector by 0.42%, closing with a day change of -0.23%. This decline followed a sequence of five consecutive days of losses, although the stock showed a modest gain on the day of the new low, signalling a potential short-term pause in the downward trend. Despite this, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring a sustained bearish momentum.

In contrast, the broader market displayed resilience, with the Sensex recovering from an initial negative opening to close 0.08% higher at 83,642.90 points. The Sensex remains within 3.01% of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. This divergence highlights the relative weakness of Andrew Yule & Company Ltd compared to the overall market.

Financial Performance and Underlying Factors

The company’s financial results have contributed to the subdued stock performance. For the quarter ending September 2025, net sales declined by 20.02% to Rs.71.52 crores. Profit before tax excluding other income (PBT less OI) plunged by 398.31% to a loss of Rs.10.62 crores, while the net profit after tax (PAT) fell by 100.1%, registering a marginal loss of Rs.0.02 crores. These figures reflect a contraction in revenue and profitability, which have weighed on investor confidence.

Over the past five years, the company’s operating profit has deteriorated at an annualised rate of -240.14%, indicating persistent challenges in generating sustainable earnings growth. The weak long-term fundamental strength is further evidenced by the company’s poor ability to service debt, with an average EBIT to interest ratio of -6.46, signalling financial strain.

Valuation and Risk Considerations

The stock’s valuation metrics also reflect elevated risk. Despite a 122.3% increase in profits over the past year, the share price has declined by 45.87%, resulting in a price-to-earnings-to-growth (PEG) ratio of 1.8. This suggests that the market is pricing in considerable uncertainty regarding the company’s future earnings trajectory.

Additionally, the company’s market capitalisation grade stands at 3, indicating a relatively modest market cap compared to peers. Domestic mutual funds hold no stake in Andrew Yule & Company Ltd, which may imply limited institutional confidence or a cautious stance given the company’s current financial profile and market position.

Comparative Performance and Sector Positioning

Andrew Yule & Company Ltd’s stock has underperformed not only the Sensex, which posted an 8.10% gain over the past year, but also the BSE500 index across multiple time frames including the last three years, one year, and three months. This underperformance highlights the stock’s relative weakness within the FMCG sector and the broader market.

The 52-week high for the stock was Rs.40.65, nearly double the current price, emphasising the extent of the decline over the past year. The company’s mojo score of 12.0 and a recent downgrade from a Sell to a Strong Sell rating on 4 Nov 2024 further reflect the cautious stance adopted by rating agencies and analysts.

Summary of Key Metrics

To summarise, Andrew Yule & Company Ltd’s stock is currently trading at Rs.21.7, its lowest level in 52 weeks, reflecting a 45.87% decline over the past year. The company’s financial results reveal a contraction in sales and profitability, with operating losses and a weak debt servicing capacity. The stock remains below all major moving averages, indicating continued downward pressure. Meanwhile, the broader market and FMCG sector have shown relative strength, underscoring the stock’s underperformance.

These factors collectively contribute to the company’s current market standing and the cautious outlook reflected in its mojo grade and institutional ownership profile.

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