Hikal Ltd Stock Falls to 52-Week Low of Rs.188.9 Amidst Continued Downtrend

Stock Performance and Market Context

On 30 Jan 2026, Hikal Ltd’s stock price touched Rs.188.9, the lowest level recorded in the past year. This decline comes amid a two-day losing streak, during which the stock has fallen by 2.68%. The day’s performance saw the stock underperform its Pharmaceuticals & Biotechnology sector by 0.63%, continuing a trend of relative weakness. Notably, Hikal 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 benchmark, the Sensex, opened lower at 81,947.31, down 619.06 points or 0.75%, and was trading at 82,190.71 by midday, a decline of 0.45%. Despite this, the Sensex remains within 4.83% of its 52-week high of 86,159.02, with its 50-day moving average positioned above the 200-day moving average, indicating a generally more stable market environment compared to Hikal’s stock.

Over the last year, Hikal Ltd’s stock has delivered a negative return of 45.07%, a stark contrast to the Sensex’s positive 7.08% gain over the same period. The stock’s 52-week high was Rs.456.6, underscoring the extent of the decline.

Financial Metrics and Profitability Concerns

Hikal Ltd’s financial indicators reveal challenges that have contributed to the stock’s decline. The company’s long-term operating profit growth has contracted at a compound annual growth rate (CAGR) of -16.24% over the past five years, reflecting weakening earnings capacity. This trend is further evidenced by the company’s recent quarterly results, which have been negative for two consecutive quarters.

The latest quarterly profit after tax (PAT) stood at a loss of Rs.34.90 crore, representing a dramatic fall of 320.54% compared to the previous four-quarter average. Operating profit to interest coverage ratio has also deteriorated, reaching a low of 0.48 times, indicating limited capacity to comfortably service interest expenses. Return on capital employed (ROCE) for the half year was recorded at 4.44%, one of the lowest levels in recent periods, while average return on equity (ROE) remains modest at 8.00%, signalling subdued profitability relative to shareholders’ funds.

The company’s debt position remains a concern, with a high Debt to EBITDA ratio of 2.51 times, suggesting elevated leverage and potential strain on cash flows. These factors collectively underpin the MarketsMOJO Mojo Grade downgrade from Sell to Strong Sell on 14 Nov 2025, with a current Mojo Score of 12.0, reflecting weak fundamental strength and deteriorating financial health.

Valuation and Relative Positioning

Despite the negative earnings trajectory, Hikal Ltd’s valuation metrics indicate an attractive entry point relative to its capital employed. The enterprise value to capital employed ratio stands at 1.6, which is lower than the historical average for its peer group within the Pharmaceuticals & Biotechnology sector. This discount to peers’ valuations may reflect the market’s cautious stance given the company’s recent performance.

However, the stock’s underperformance extends beyond the last year. It has lagged the BSE500 index over the past three years, one year, and three months, underscoring persistent challenges in regaining investor confidence. Profitability has also sharply declined, with annual profits falling by 86.2% over the past year, compounding the stock’s downward pressure.

Shareholding and Sectoral Context

Promoters remain the majority shareholders of Hikal Ltd, maintaining significant control over the company’s strategic direction. The stock’s performance contrasts with the broader Pharmaceuticals & Biotechnology sector, which has generally exhibited more resilience in recent months. Hikal’s relative underperformance within its sector highlights company-specific factors influencing investor sentiment and valuation.

While the Sensex and sector indices have shown signs of recovery and stability, Hikal’s stock continues to trade at depressed levels, reflecting the market’s assessment of its financial and operational position.

Summary of Key Metrics

To summarise, Hikal Ltd’s stock has reached a 52-week low of Rs.188.9, down from a high of Rs.456.6 within the last year. The stock’s one-year return of -45.07% starkly contrasts with the Sensex’s positive 7.08% gain. Financially, the company faces challenges with a -16.24% CAGR in operating profits over five years, a Debt to EBITDA ratio of 2.51 times, and a recent PAT decline of over 320%. The Mojo Grade downgrade to Strong Sell reflects these deteriorations. Despite an attractive valuation ratio of 1.6 EV to capital employed, the stock’s ongoing underperformance relative to peers and indices remains notable.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →