Stock Price Movement and Market Context
On the day the new low was recorded, Andrew Yule & Company Ltd’s share price fell by 0.86%, continuing a five-day losing streak that has resulted in a cumulative decline of 6.23%. The stock currently trades below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. Despite this, the stock marginally outperformed its FMCG sector peers by 0.51% on the same day.
In contrast, the broader market benchmark, the Sensex, experienced a decline of 0.72%, closing at 83,576.24 points, down 445.85 points from the previous session. The Sensex remains 3.09% below its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, indicating a mixed technical picture for the broader market.
Long-Term Performance and Relative Underperformance
Over the last twelve months, Andrew Yule & Company Ltd’s stock has delivered a negative return of 45.67%, a stark contrast to the Sensex’s positive 7.67% gain over the same period. The stock’s 52-week high was Rs.43, underscoring the extent of the decline. This underperformance extends beyond the past year, with the company lagging behind the BSE500 index across one-year, three-year, and three-month timeframes.
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Financial Metrics and Profitability Concerns
Andrew Yule & Company Ltd’s financial performance has been subdued, with recent quarterly results highlighting a decline in key metrics. Net sales for the quarter ended September 2025 stood at Rs.71.52 crore, down 20.02% year-on-year. Profit before tax excluding other income (PBT less OI) registered a loss of Rs.10.62 crore, a steep fall of 398.31%. The company reported a marginal net loss (PAT) of Rs.0.02 crore, representing a 100.1% decline compared to the previous period.
The company’s operating profit has deteriorated significantly over the past five years, with an annualised decline rate of 240.14%. This weak growth trajectory is reflected in its long-term fundamental strength, which remains fragile. The ability to service debt is also under pressure, with an average EBIT to interest ratio of -6.46, indicating that earnings before interest and tax are insufficient to cover interest expenses.
Valuation and Risk Profile
The stock’s valuation metrics suggest elevated risk relative to its historical averages. Despite the negative returns of 45.67% over the past year, the company’s profits have increased by 122.3%, resulting in a price/earnings to growth (PEG) ratio of 1.8. This disparity points to valuation complexities amid fluctuating earnings performance.
Notably, domestic mutual funds hold no stake in Andrew Yule & Company Ltd, which may reflect a cautious stance given the company’s current financial and market position. The absence of significant institutional ownership is notable for a company of its size and sector.
Sector and Market Position
Operating within the FMCG sector, Andrew Yule & Company Ltd faces challenges that have contributed to its subdued market performance. The stock’s Mojo Score stands at 12.0, with a Mojo Grade of Strong Sell as of 4 November 2024, an upgrade from a previous Sell rating. The Market Cap Grade is rated at 3, indicating a relatively modest market capitalisation within its peer group.
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Summary of Key Concerns
The stock’s recent fall to Rs.21.85 represents a culmination of several factors, including weak sales, losses at the operating and net profit levels, and a challenging debt servicing environment. The consistent decline over the past five days and the breach of all major moving averages underscore the prevailing negative momentum. The company’s long-term growth has been underwhelming, with operating profits shrinking at a significant annualised rate over five years.
Additionally, the lack of institutional investment and the Strong Sell Mojo Grade highlight the cautious market sentiment surrounding Andrew Yule & Company Ltd. While the broader market and FMCG sector have shown mixed trends, the company’s performance remains distinctly below par.
Technical and Market Indicators
From a technical standpoint, the stock’s position below all key moving averages suggests limited near-term support levels. The Sensex’s own decline and trading below its 50-day moving average add to the overall cautious market environment. The divergence between the Sensex’s relative strength and Andrew Yule & Company Ltd’s underperformance further emphasises the stock’s isolated challenges within the FMCG sector.
Conclusion
Andrew Yule & Company Ltd’s stock reaching a 52-week low of Rs.21.85 reflects a combination of subdued financial results, weak long-term fundamentals, and challenging market conditions. The company’s recent quarterly results, valuation metrics, and market positioning collectively illustrate the factors contributing to this decline. The stock’s performance relative to the broader market and sector peers highlights the ongoing difficulties faced by the company in regaining investor confidence and market momentum.
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