Haryana Leather Chemicals Ltd Hits 52-Week Low Amid Continued Downtrend

Stock Price Movement and Market Context

The stock of Haryana Leather Chemicals Ltd (Stock ID: 802839) has been on a consistent decline, falling for four consecutive trading sessions and registering a cumulative loss of 8.93% over this period. Today's closing price of Rs.55.05 represents the lowest level the stock has reached in the past year, down sharply from its 52-week high of Rs.88.80. This decline contrasts with the broader market, where the Sensex, despite a negative opening and a fall of 360.20 points (-0.64%) to 84,417.82, remains only 2.06% below its 52-week high of 86,159.02.

Haryana Leather Chemicals has underperformed not only the Sensex but also its own sector, the Commodity Chemicals segment, with a day change of -1.71%, underperforming the sector by 1.08%. The stock is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — indicating a persistent bearish trend.

Financial Performance and Fundamental Metrics

The company’s financial indicators reveal challenges that have contributed to the stock’s decline. Over the last year, Haryana Leather Chemicals has delivered a negative return of 28.66%, significantly lagging behind the Sensex’s positive 7.96% return. This underperformance extends to longer time frames, with the stock also trailing the BSE500 index over the past three years, one year, and three months.

Long-term growth metrics show modest expansion, with net sales growing at an annualised rate of 12.62% and operating profit increasing by 14.39% over the last five years. However, these growth rates have not translated into robust profitability. The company’s average Return on Equity (ROE) stands at 5.84%, reflecting limited efficiency in generating shareholder returns. The most recent nine-month Profit After Tax (PAT) figure of Rs.1.48 crore has declined by 56.55%, signalling a contraction in profitability in the near term.

Valuation and Market Sentiment

Despite the stock’s recent price weakness, valuation metrics suggest a mixed picture. Haryana Leather Chemicals trades at a Price to Book Value (P/BV) of 0.7, which is considered fair relative to its own fundamentals. However, this valuation is at a premium compared to the historical average valuations of its peers within the Commodity Chemicals sector. The company’s ROE of 4.8% further supports a moderate valuation stance.

Profitability pressures are evident, with profits declining by 52.7% over the past year, which has weighed on investor sentiment. The stock’s Mojo Score currently stands at 20.0, categorised as a Strong Sell, an upgrade from the previous Sell rating as of 21 Nov 2025. This reflects a deteriorated outlook based on a comprehensive assessment of fundamentals, momentum, and valuation factors.

Shareholding and Market Position

The majority of Haryana Leather Chemicals’ shares are held by non-institutional investors, which may influence trading dynamics and liquidity. The company operates within the Commodity Chemicals industry and sector, which has experienced varied performance in recent months. The stock’s underperformance relative to the sector and broader market indices highlights ongoing challenges in maintaining competitive positioning.

Technical Indicators and Market Trends

From a technical perspective, Haryana Leather Chemicals’ price action remains subdued. The stock is trading below all major moving averages, including the short-term 5-day and 20-day averages as well as the longer-term 50-day, 100-day, and 200-day averages. This alignment suggests sustained downward momentum without immediate signs of reversal.

In contrast, the Sensex, while having declined today, maintains a more resilient technical profile. It trades below its 50-day moving average, but the 50-day average remains above the 200-day average, indicating an overall positive medium-term trend for the broader market. This divergence underscores the stock’s relative weakness within the current market environment.

Summary of Key Metrics

To summarise, Haryana Leather Chemicals Ltd’s key metrics as of 8 Jan 2026 are:

• New 52-week low price: Rs.55.05


• 52-week high price: Rs.88.80


• One-year stock return: -28.66%


• Sensex one-year return: +7.96%


• Average ROE (long term): 5.84%


• Net sales growth (5 years CAGR): 12.62%


• Operating profit growth (5 years CAGR): 14.39%


• PAT (9 months): Rs.1.48 crore, down 56.55%


• Mojo Score: 20.0 (Strong Sell)


• Price to Book Value: 0.7


• Majority shareholders: Non-institutional

The combination of subdued financial performance, declining profitability, and technical weakness has contributed to the stock’s fall to its lowest level in a year. While the broader market and sector have shown relative resilience, Haryana Leather Chemicals continues to face headwinds reflected in its share price.

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