Stock Price Movement and Market Context
On the day in question, Hikal Ltd’s stock touched an intraday low of Rs.180.6, representing a 5.47% decline from the previous close. The stock’s day change was recorded at -5.84%, underperforming the Pharmaceuticals & Biotechnology sector by 4.5%. This decline extended a losing streak over two consecutive sessions, during which the stock has fallen by 7.95% cumulatively.
Hikal’s current price is substantially below its 52-week high of Rs.456.6, indicating a depreciation of over 60% from its peak. The stock is 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. The Sensex, after a flat opening with a minor dip of 64.61 points, rallied to close 284.98 points higher at 83,534.30, a gain of 0.26%. The index remains within 3.14% of its 52-week high of 86,159.02, supported by strong performances from mega-cap stocks. The Sensex’s 50-day moving average remains above its 200-day moving average, indicating an overall positive market trend despite Hikal’s underperformance.
Financial Performance and Profitability Concerns
Hikal Ltd’s financial metrics reveal challenges that have contributed to the stock’s decline. The company has experienced a negative compound annual growth rate (CAGR) of -16.24% in operating profits over the past five years, reflecting a weakening earnings base. The latest quarterly results, declared in September 2025, were notably adverse, with earnings per share (EPS) falling by 320.54% and a net loss (PAT) of Rs.34.90 crores, marking a significant deterioration compared to the previous four-quarter average.
The company has reported negative results for two consecutive quarters, underscoring ongoing difficulties in reversing the downward trend. Return on capital employed (ROCE) for the half-year period stands at a low 4.44%, while the operating profit to interest coverage ratio has dropped to 0.48 times, indicating limited capacity to service debt obligations effectively. The debt to EBITDA ratio remains elevated at 2.51 times, further highlighting leverage concerns.
Return on equity (ROE) averages 8.00%, a figure that suggests modest profitability relative to shareholders’ funds. Over the last year, Hikal’s stock has generated a negative return of 52.93%, starkly contrasting with the Sensex’s positive 7.00% return over the same period. The stock has also underperformed the BSE500 index across multiple time frames, including three years, one year, and three months.
Rising fast and still accelerating! This Small Cap from FMCG sector is riding pure momentum right now. Jump in before the rally reaches its peak!
- - Accelerating price action
- - Pure momentum play
- - Pre-peak entry opportunity
Valuation and Market Sentiment
Despite the subdued financial performance, Hikal Ltd’s valuation metrics present a contrasting picture. The company’s ROCE of 4.1% is accompanied by an attractive enterprise value to capital employed ratio of 1.6, suggesting that the stock is trading at a discount relative to its capital base. This valuation is lower than the average historical valuations of its peers within the Pharmaceuticals & Biotechnology sector.
However, the discount in valuation has not translated into positive price momentum, as the stock’s profitability has declined sharply by 86.2% over the past year. The majority shareholding remains with promoters, maintaining control over the company’s strategic direction.
Hikal Ltd’s Mojo Score currently stands at 12.0, with a Mojo Grade of Strong Sell as of 14 November 2025, an upgrade from the previous Sell rating. The market capitalisation grade is rated at 3, reflecting the company’s mid-tier size within its sector.
Considering Hikal Ltd? Wait! SwitchER has found potentially better options in Pharmaceuticals & Biotechnology and beyond. Compare this small-cap with top-rated alternatives now!
- - Better options discovered
- - Pharmaceuticals & Biotechnology + beyond scope
- - Top-rated alternatives ready
Summary of Performance Trends
Over the last year, Hikal Ltd has experienced a significant decline in both stock price and profitability. The stock’s 52.93% negative return contrasts sharply with the broader market’s positive performance. The company’s operating profits have contracted at a CAGR of -16.24% over five years, while recent quarterly results have shown a steep fall in earnings and net profit.
Financial ratios such as debt to EBITDA and interest coverage indicate elevated leverage and constrained ability to meet financial obligations. The company’s return metrics, including ROE and ROCE, remain below sector averages, reflecting subdued profitability and capital efficiency.
Trading below all major moving averages, the stock’s technical indicators align with the fundamental challenges faced by the company. Despite a valuation discount relative to peers, the market has priced in the company’s recent performance trends, resulting in the current 52-week low price.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
