Stock Price Movement and Market Context
On 12 Jan 2026, Hisar Metal Industries Ltd’s stock opened with a gap down of 3.63%, continuing a downward trend that has seen the share price fall by 7.78% over the last two trading sessions. During the day, the stock touched an intraday low of Rs 151, representing a 4.73% decline from the previous close. This movement underperformed the broader Iron & Steel Products sector by 1.97% and was accompanied by the stock trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages.
In comparison, the Sensex index opened lower by 140.93 points and was trading at 83,308.71, down 0.32% on the day. Despite the Sensex being only 3.42% away from its 52-week high of 86,159.02, Hisar Metal Industries Ltd’s stock has lagged significantly, reflecting sector-specific and company-specific challenges.
Long-Term Performance and Financial Metrics
Over the past year, Hisar Metal Industries Ltd has delivered a negative return of 24.14%, markedly underperforming the Sensex’s positive 7.84% gain during the same period. The stock’s 52-week high was Rs 232.88, highlighting the extent of the decline to current levels near Rs 150.2.
The company’s financial fundamentals have contributed to this underperformance. Operating profits have grown at a modest compound annual growth rate (CAGR) of 10.77% over the last five years, which is considered weak relative to industry peers. Additionally, the company’s ability to service its debt remains constrained, with a high Debt to EBITDA ratio of 3.50 times, indicating elevated leverage and financial risk.
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Profitability and Earnings Trends
Hisar Metal Industries Ltd has reported negative net profits for 11 consecutive quarters, underscoring persistent earnings pressure. The company’s profit after tax (PAT) for the nine months ended has declined by 45.72%, standing at Rs 1.65 crore. Meanwhile, interest expenses have surged by 64.79% to Rs 7.63 crore over the same period, further straining profitability.
The return on capital employed (ROCE) for the half-year period is notably low at 9.06%, reflecting limited efficiency in generating returns from invested capital. This figure is below industry averages and highlights challenges in operational performance and capital utilisation.
Valuation and Relative Positioning
Despite the subdued financial performance, the stock’s valuation metrics suggest it is trading at a discount relative to its peers. The enterprise value to capital employed ratio stands at 1.2, which may be considered attractive in the context of the sector’s valuation norms. However, this valuation discount has not translated into positive returns, as the stock has underperformed the BSE500 index over the last three years, one year, and three months.
The company’s Mojo Score is 14.0, with a Mojo Grade of Strong Sell, upgraded from a Sell rating on 13 Nov 2025. The market capitalisation grade is 4, indicating a relatively small market cap compared to larger industry players. These ratings reflect the company’s ongoing financial and market challenges.
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Shareholding and Sectoral Context
The majority shareholding in Hisar Metal Industries Ltd remains with the promoters, indicating concentrated ownership. The company operates within the Iron & Steel Products sector, which has experienced mixed performance amid fluctuating demand and pricing pressures.
While the Sensex and broader market indices have shown resilience, Hisar Metal Industries Ltd’s stock continues to face headwinds, reflected in its sustained decline and proximity to the 52-week low.
Summary of Key Metrics
To summarise, the stock’s recent fall to near Rs 150.2 marks a significant low point in its 52-week trading range. The company’s financial indicators, including a high debt burden, declining profits, and subdued returns on capital, have contributed to this trend. Despite an attractive valuation relative to peers, the stock’s performance remains weak, with a Strong Sell Mojo Grade signalling ongoing caution.
Hisar Metal Industries Ltd’s stock price trajectory and financial profile illustrate the challenges faced by smaller-cap companies in the Iron & Steel Products sector, particularly those with stretched balance sheets and earnings pressures.
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