Haryana Leather Chemicals Ltd Falls to 52-Week Low of Rs.55

Stock Price Movement and Market Context

On 19 Jan 2026, Haryana Leather Chemicals Ltd (Stock ID: 802839) touched Rs.55, its lowest level in the past year. The stock’s performance today was in line with its sector peers, despite the broader market showing a negative trend. The Sensex opened flat with a marginal decline of -75.86 points but subsequently fell by -523.51 points, closing at 82,970.98, down 0.72%. The index remains 3.84% below its 52-week high of 86,159.02 and has experienced a three-week consecutive decline, losing 3.25% over this period.

Haryana Leather Chemicals’ share price currently trades above its 5-day moving average but remains below its 20-day, 50-day, 100-day, and 200-day moving averages. This positioning indicates short-term support but sustained weakness over longer time frames.

Comparative Performance Over One Year

Over the last 12 months, Haryana Leather Chemicals Ltd has delivered a negative return of -25.31%, significantly underperforming the Sensex, which posted a positive return of 8.27% during the same period. The stock’s 52-week high was Rs.88.8, highlighting the extent of the recent decline.

Financial Metrics and Valuation Concerns

Haryana Leather Chemicals Ltd’s long-term fundamental strength remains subdued, reflected in an average Return on Equity (ROE) of 5.84%. The company’s net sales have grown at an annual rate of 12.62% over the past five years, while operating profit has increased at 14.39% annually. Despite these growth rates, the stock’s valuation appears expensive relative to its peers, trading at a Price to Book Value (P/BV) of 0.7 despite a modest ROE of 4.8% in the recent period.

Profitability has notably declined, with the Profit After Tax (PAT) for the nine months ended September 2025 reported at Rs.1.48 crore, representing a contraction of 56.55%. Over the past year, profits have fallen by 52.7%, further weighing on investor sentiment.

Long-Term and Recent Performance Trends

The stock’s underperformance extends beyond the last year. Haryana Leather Chemicals Ltd has lagged behind the BSE500 index over the last three years, one year, and three months. This below-par performance underscores persistent challenges in maintaining competitive growth and profitability within the commodity chemicals sector.

Shareholding Pattern

The majority of Haryana Leather Chemicals Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. Institutional participation remains limited, reflecting cautious positioning by larger market players.

Mojo Score and Rating Update

MarketsMOJO assigns Haryana Leather Chemicals Ltd a Mojo Score of 17.0, categorising it with a Strong Sell grade as of 21 Nov 2025. This represents a downgrade from the previous Sell rating, reflecting deteriorating fundamentals and valuation concerns. The company’s Market Cap Grade stands at 4, indicating a relatively modest market capitalisation within its sector.

Sector and Market Environment

Operating within the commodity chemicals industry, Haryana Leather Chemicals Ltd faces sectoral headwinds amid fluctuating raw material costs and competitive pressures. The broader Sensex index, while currently below its 50-day moving average, maintains a 50DMA above its 200DMA, signalling mixed technical signals for the market overall. The index’s recent three-week decline of 3.25% adds to the cautious backdrop against which the stock’s performance is assessed.

Summary of Key Data Points

To summarise, Haryana Leather Chemicals Ltd’s stock has reached Rs.55, its lowest level in 52 weeks, amid a challenging financial and market environment. The stock’s one-year return of -25.31% contrasts with the Sensex’s positive 8.27% gain. Profitability has contracted sharply, with PAT down 56.55% in the latest nine-month period. Valuation metrics indicate a premium relative to peers despite subdued returns on equity. The Mojo Score downgrade to Strong Sell underscores the company’s current standing within the commodity chemicals sector.

These factors collectively explain the stock’s recent decline to its 52-week low and provide a comprehensive view of its current market position.

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