Why is Andrew Yule & Co falling/rising?

Recent Price Movement and Market Performance

The stock has been under pressure recently, losing 5.66% over the past week compared to a modest 0.63% decline in the Sensex. Over the last month, Andrew Yule & Co’s shares have dropped by 11.09%, while the Sensex gained 2.27%. Year-to-date, the stock has plummeted 41.81%, starkly contrasting with the Sensex’s 8.91% rise. Over the last year, the stock’s decline deepens further to 46.72%, whereas the benchmark index has advanced by 4.15%. Even over a three-year horizon, the stock has underperformed significantly, falling 8.64% against the Sensex’s 36.01% gain.

On 08 December, the stock hit a fresh 52-week low of ₹22, underscoring the persistent bearish sentiment. It has also underperformed its sector by 2.32% on the day and has been declining for two consecutive sessions, losing nearly 4% in that period. The share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained downward momentum.

Fundamental Weaknesses Driving the Decline

Andrew Yule & Co’s share price decline is underpinned by its weak long-term fundamentals. The company has been reporting operating losses, with operating profit shrinking at an alarming annual rate of -240.14% over the past five years. This indicates a severe deterioration in core business profitability. Additionally, the company’s ability to service its debt is poor, reflected in a negative average EBIT to interest ratio of -6.46, signalling financial stress and heightened risk for creditors and investors alike.

The quarterly results for September 2025 further highlight the challenges. Net sales fell by 20.02% to ₹71.52 crores, while profit before tax excluding other income plunged by 398.31% to a loss of ₹10.62 crores. The company also reported a near-zero net profit after tax of -₹0.02 crores, down 100.1% from the previous period. These disappointing results have likely contributed to the negative investor sentiment and selling pressure.

Despite the company’s size, domestic mutual funds hold no stake in Andrew Yule & Co. This absence of institutional interest may reflect a lack of confidence in the company’s prospects or valuation, further dampening demand for the stock.

Risk Factors and Valuation Concerns

The stock is considered risky relative to its historical valuations. Although profits have risen by 122.3% over the past year, the share price has declined by 46.72%, resulting in a price-to-earnings-to-growth (PEG) ratio of 1.9. This elevated PEG ratio suggests that the market perceives the company’s growth prospects as insufficient to justify its current valuation, or that other risks overshadow the profit improvement.

Liquidity remains adequate for trading, with delivery volumes spiking by over 378% on 25 October compared to the five-day average, indicating some investor participation. However, this has not translated into sustained price support, as the stock continues to trade below all major moving averages and at multi-year lows.

Conclusion: Why the Stock is Falling

In summary, Andrew Yule & Co’s share price decline as of 08 December is primarily driven by its weak financial performance, poor long-term growth trajectory, and lack of institutional support. The company’s operating losses, deteriorating profitability, and inability to service debt have eroded investor confidence. Despite some recent profit growth, the stock’s valuation remains unattractive relative to its risks, leading to sustained selling pressure and underperformance against broader market indices. Until the company demonstrates a clear turnaround in fundamentals and stabilises its financial health, the stock is likely to remain under pressure.

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