Lyka Labs Falls to 52-Week Low of Rs.85 Amidst Continued Downtrend

On 18 Nov 2025, Lyka Labs’ stock price touched Rs.85, the lowest level recorded in the past year. This new low comes after the stock experienced a consecutive four-day decline, resulting in a cumulative return loss of 7.65% during this period. The stock’s performance today also lagged behind its sector, underperforming by 0.45%. Notably, Lyka Labs is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish momentum.

In contrast, the broader market index, Sensex, opened positively with a gain of 91.42 points but later retreated by 295.83 points, closing at 84,746.54, down 0.24%. The Sensex remains close to its 52-week high of 85,290.06, trading just 0.64% below that peak. It is also positioned above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish trend for the benchmark index. This divergence highlights the relative weakness in Lyka Labs’ stock compared to the broader market.

Examining Lyka Labs’ longer-term performance reveals a challenging period for the company’s stock. Over the past year, the stock has generated a negative return of 39.93%, significantly underperforming the Sensex, which posted a positive return of 9.58% during the same timeframe. The stock’s 52-week high was Rs.175.95, underscoring the extent of the decline to the current low of Rs.85.

Financial metrics provide further insight into the company’s recent performance. The quarterly Profit After Tax (PAT) stood at a loss of Rs.3.36 crore, reflecting a fall of 260.0% compared to the previous period. Net sales for the quarter were Rs.36.66 crore, down by 10.93%. Earnings before interest, depreciation, taxes and amortisation (PBDIT) also recorded a negative figure of Rs.2.54 crore, marking the lowest level in recent quarters. These figures indicate subdued financial results in both the near and longer term.

Lyka Labs’ debt profile is a notable factor in its evaluation. The company carries a high average debt-to-equity ratio of 2.98 times, which is significant within the pharmaceuticals and biotechnology sector. This elevated leverage may contribute to the cautious stance reflected in the stock’s performance and valuation.

Despite these challenges, the company demonstrates certain strengths. Management efficiency is reflected in a return on capital employed (ROCE) of 16.05%, which is relatively high. Additionally, the stock’s enterprise value to capital employed ratio stands at 2.6, suggesting a fair valuation relative to its capital base. The stock is also trading at a discount compared to the average historical valuations of its peers in the sector.

Ownership of Lyka Labs remains concentrated with promoters holding the majority stake. This ownership structure can influence company decisions and strategic direction, though it has not prevented the recent stock price decline.

In summary, Lyka Labs’ stock has experienced a marked decline to its 52-week low of Rs.85, reflecting a combination of subdued quarterly financial results, high leverage, and underperformance relative to the broader market and sector peers. While the company shows some positive indicators such as management efficiency and valuation metrics, the stock remains below all key moving averages and has delivered negative returns over the past year. Investors analysing Lyka Labs should consider these factors in the context of the current market environment and sector dynamics.