Stock Price Movement and Market Context
On 2 Feb 2026, Harrisons Malayalam Ltd opened with a gap down of 3.69%, signalling a continuation of the downward trend that has characterised its performance over the past year. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring the persistent bearish momentum. This contrasts with the broader Tea/Coffee sector, which gained 2.96% on the same day, highlighting the stock’s relative weakness.
Meanwhile, the Nifty index closed at 25,088.40, up 1.06%, with all market capitalisation segments showing gains and the Nifty Next 50 leading with a 1.07% rise. Despite this positive market environment, Harrisons Malayalam Ltd’s shares have continued to decline, reflecting company-specific challenges.
Long-Term Performance and Valuation Metrics
Over the last 12 months, Harrisons Malayalam Ltd has delivered a negative return of 37.32%, significantly underperforming the Sensex, which rose by 5.37% during the same period. The stock’s 52-week high stands at Rs 268.89, indicating a substantial erosion in value from its peak. This underperformance extends beyond the past year, with the stock lagging the BSE500 index over one, three months, and three years.
From a valuation perspective, the company’s Return on Capital Employed (ROCE) is 7.4%, which is considered fair. The enterprise value to capital employed ratio is 1.5, suggesting the stock is trading at a discount relative to its peers’ historical valuations. Despite this, the company’s Mojo Score remains low at 26.0, with a Mojo Grade of Strong Sell, downgraded from Sell on 24 Sep 2025.
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Financial Performance and Profitability Indicators
The company reported flat results in the quarter ending September 2025, with Profit Before Tax (PBT) excluding other income at a loss of Rs 5.33 crore, representing a decline of 239.4% compared to the previous four-quarter average. Operating cash flow for the year was recorded at Rs 23.35 crore, the lowest level observed, while the operating profit to interest coverage ratio for the quarter was negative at -0.23 times, indicating challenges in servicing interest obligations.
Harrisons Malayalam Ltd’s debt to EBITDA ratio stands at 4.74 times, signalling a relatively high leverage position that may constrain financial flexibility. These factors contribute to the company’s weak long-term fundamental strength and underpin the Strong Sell rating assigned by MarketsMOJO.
Shareholding and Market Capitalisation
The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. The stock’s market capitalisation grade is rated 4, reflecting its micro-cap status within the Industrial Products sector. Despite the subdued share price performance, the company’s profits have increased by 799.1% over the past year, although this has not translated into positive returns for shareholders, as reflected by a PEG ratio of zero.
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Sector and Market Comparison
While Harrisons Malayalam Ltd has struggled, the broader Industrial Products sector has shown resilience, with the Tea/Coffee segment gaining 2.96% on the day the stock hit its 52-week low. The Nifty index’s positive performance and gains across all market capitalisation segments further highlight the stock’s relative underperformance. The divergence between the company’s share price trajectory and sectoral trends emphasises the specific challenges faced by Harrisons Malayalam Ltd.
Summary of Key Metrics
To summarise, Harrisons Malayalam Ltd’s stock is trading close to its 52-week low of Rs 156, with a current intraday low of Rs 159.35. The stock has declined by 37.32% over the past year, underperforming the Sensex and its sector peers. Financial indicators reveal a loss-making quarter, low interest coverage, and a high debt burden. Despite a fair ROCE and discounted valuation metrics, the company’s Mojo Grade remains at Strong Sell, reflecting ongoing concerns about its financial health and market performance.
Conclusion
The recent fall to a 52-week low for Harrisons Malayalam Ltd underscores the challenges the company continues to face in a competitive and evolving market environment. While the broader market and sector indices have shown positive momentum, the stock’s performance remains subdued, influenced by financial strain and valuation pressures. These factors collectively contribute to the current market sentiment surrounding the stock.
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