Haryana Leather Chemicals Ltd Falls to 52-Week Low of Rs 52

Stock Price Movement and Market Context

On 27 Jan 2026, Haryana Leather Chemicals Ltd (Stock ID: 802839) opened sharply lower with a gap down of -7.37%, continuing a downward trajectory that has seen the stock fall by -4.29% over the last three consecutive trading sessions. The intraday low reached Rs 52, representing an 8.77% drop from the previous close. This decline outpaced the sector’s performance, with the stock underperforming the commodity chemicals sector by -1.62% on the day.

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 bearish momentum. In contrast, the broader market has shown resilience, with the Sensex recovering from an initial negative opening to close 0.29% higher at 81,773.67 points. Notably, other indices such as NIFTY MEDIA and NIFTY REALTY also hit new 52-week lows today, indicating sector-specific pressures in certain segments.

Long-Term Performance and Valuation Metrics

Over the past year, Haryana Leather Chemicals Ltd has delivered a total return of -23.49%, significantly lagging behind the Sensex’s positive 8.41% return over the same period. The stock’s 52-week high was Rs 88.80, underscoring the extent of the recent decline. The company’s market capitalisation grade stands at 4, reflecting its relatively modest size within the commodity chemicals sector.

Financially, the company’s long-term fundamentals have been under pressure. The average Return on Equity (ROE) over recent years is 5.84%, which is considered weak for the sector. Net sales have grown at a compounded annual growth rate (CAGR) of 12.62% over the last five years, while operating profit has increased at a slightly higher rate of 14.39%. Despite this growth, profitability metrics have deteriorated in the near term.

Recent Financial Results and Profitability Concerns

The company reported flat results in the September 2025 quarter, with a notable decline in profitability. The Profit After Tax (PAT) for the first nine months stood at Rs 1.48 crore, reflecting a sharp contraction of -56.55% compared to the previous period. This decline in earnings has contributed to the stock’s valuation challenges.

Haryana Leather Chemicals Ltd’s ROE for the recent period has further decreased to 4.8%, indicating diminished efficiency in generating shareholder returns. The stock’s Price to Book Value ratio is 0.6, which is relatively expensive when compared to the average historical valuations of its peers in the commodity chemicals sector. This premium valuation amidst declining profits has raised concerns about the stock’s pricing in the current market environment.

Comparative Performance and Market Position

Over the last three years, the stock has consistently underperformed the BSE500 index, as well as its sector peers. The negative returns of -23.49% over the past year and the -52.7% decline in profits over the same period highlight the company’s below-par performance both in the long and near term. The majority of the company’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics.

Sector and Market Dynamics

The commodity chemicals sector has faced mixed conditions recently, with some indices such as NIFTY MEDIA and NIFTY REALTY also hitting 52-week lows on the same day. While the broader market, led by mega-cap stocks, has shown resilience, Haryana Leather Chemicals Ltd’s performance remains subdued. The Sensex is trading below its 50-day moving average, though the 50-day average remains above the 200-day average, indicating a cautiously optimistic market trend overall.

Given the stock’s current position below all major moving averages and its recent price action, the downward momentum appears entrenched. The stock’s decline to Rs 52 represents a significant technical and psychological level, reflecting investor caution amid the company’s financial and valuation challenges.

Summary of Key Metrics

To summarise, Haryana Leather Chemicals Ltd’s key metrics as of 27 Jan 2026 are:

• New 52-week low price: Rs 52
• Day’s low intraday drop: -8.77%
• Three-day consecutive decline: -4.29%
• One-year stock return: -23.49%
• Sensex one-year return: +8.41%
• Average ROE (long term): 5.84%
• Recent ROE: 4.8%
• Net sales CAGR (5 years): 12.62%
• Operating profit CAGR (5 years): 14.39%
• PAT decline (9M): -56.55%
• Price to Book Value: 0.6
• Mojo Score: 17.0 (Strong Sell, upgraded from Sell on 21 Nov 2025)

These figures illustrate the challenges faced by Haryana Leather Chemicals Ltd in maintaining growth and profitability, which have been reflected in its stock price performance and valuation metrics.

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