Kerala Ayurveda Ltd Stock Falls to 52-Week Low of Rs.240.1

Stock Price Movement and Market Context

On 1 Feb 2026, Kerala Ayurveda Ltd’s stock touched an intraday low of Rs.240.1, representing a 7.05% drop within the trading session. This decline contributed to a three-day consecutive fall, cumulatively eroding 5.89% of the stock’s value over this period. The stock’s performance today lagged behind the Pharmaceuticals & Biotechnology sector by 4.78%, underscoring its relative weakness amid a broadly positive market backdrop.

Despite the Sensex opening 119.19 points higher and trading at 82,501.84 (up 0.28%), Kerala Ayurveda’s shares continued to slide. The benchmark index remains 4.43% shy of its 52-week high of 86,159.02, supported by gains in mega-cap stocks. In contrast, Kerala Ayurveda’s stock has declined by 41.50% over the past year, significantly underperforming the Sensex’s 7.43% gain during the same period.

Technical Indicators Highlight Bearish Momentum

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. This technical positioning suggests that short-term and long-term investor sentiment remains subdued, with no immediate signs of reversal in the price trend.

Financial Performance and Profitability Concerns

Kerala Ayurveda Ltd’s financial metrics reveal ongoing challenges. The company has reported negative results for the last three consecutive quarters, with Profit Before Tax excluding other income (PBT LESS OI) at Rs. -8.52 crores, a steep decline of 64.6% compared to the previous four-quarter average. Net Profit After Tax (PAT) for the quarter stood at Rs. -6.34 crores, plunging 94.8% relative to the prior four-quarter average.

The company’s Return on Capital Employed (ROCE) for the half-year period is notably weak at -15.13%, indicating diminished efficiency in generating returns from its capital base. Over the last five years, operating profit growth has stagnated at an annual rate of 0%, reflecting limited expansion in core earnings.

Balance Sheet and Risk Profile

Kerala Ayurveda Ltd carries a high debt burden, with a debt-to-equity ratio of 14.59 times, signalling significant leverage. This elevated debt level contributes to a weak long-term fundamental strength assessment. The company’s average Return on Capital Employed of 6.09% further highlights low profitability per unit of total capital employed, encompassing both equity and debt.

Negative EBITDA and the substantial decline in profits—down 743.5% over the past year—underscore the stock’s elevated risk profile. These factors have contributed to the stock’s downgrade from a ‘Sell’ to a ‘Strong Sell’ rating as of 11 Aug 2025, with a current Mojo Score of 3.0 and a Market Cap Grade of 4.

Shareholding Pattern and Market Position

The majority of Kerala Ayurveda Ltd’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics. The stock’s 52-week high was Rs.625, illustrating the extent of the decline to the current low of Rs.240.1. This wide price range over the past year reflects significant volatility and investor caution.

Comparative Market Performance

Over the last year, Kerala Ayurveda Ltd’s stock has underperformed not only the Sensex but also the broader BSE500 index, which has delivered returns of 7.73%. The stock’s negative return of 41.50% contrasts sharply with the positive market trend, highlighting its relative weakness within the Pharmaceuticals & Biotechnology sector.

While the Sensex’s 50-day moving average remains above its 200-day moving average, signalling a generally bullish market environment, Kerala Ayurveda’s share price continues to trade below all major moving averages, reflecting persistent downward pressure.

Summary of Key Metrics

To summarise, Kerala Ayurveda Ltd’s stock has reached a new 52-week low of Rs.240.1, driven by a combination of weak financial results, high leverage, and subdued profitability metrics. The company’s recent quarterly losses and negative returns have contributed to a ‘Strong Sell’ rating, reflecting the challenges faced by the business in the current market environment.

Despite a broadly positive market backdrop, Kerala Ayurveda’s shares have struggled to gain traction, with technical indicators and fundamental data pointing to continued caution among market participants.

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