Harri. Malayalam (HARRMALAYA)

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• ROE of 18.08% is respectable, though aided by leverage.
• Debt/equity of 0.69 is manageable, not over-levered.
• Promoter holding at 54.12% aligns owners and management.
• Sales were nearly stable at -0.82% despite tough conditions.
• P/E of 13.99 is not excessive if earnings recover.

Concerns

• Profit growth is negative at -31.79% with flat sales, indicating margin compression.
• Piotroski F-score of 3/9 suggests deteriorating fundamentals.
• P/B of 3.02 and price near the top of the 52-week range offer little margin of safety.
• No dividend yield means returns depend entirely on capital appreciation.

AI Analysis

Let's think about Harrisons Malayalam the way Graham taught me: as an owner of a business, not a ticker symbol. This is a rubber company, so the first question is not what the stock will do next month but what rubber prices and costs are doing. The last year has not been kind. Sales are essentially flat, down 0.82%, but profit has fallen 31.79%. That tells me the business is losing pricing power or margins, or both. The latest quarter shows ₹141 Cr of sales and only ₹8 Cr net profit — thin for a company with ₹353 Cr market cap. ROE is 18.08%, but that has been achieved with debt/equity of 0.69 and ROCE of only 10.95%. So leverage is inflating the return to equity. Book value is ₹76.51 and the stock is ₹230.90 — 3.02 times book. For a cyclical commodity producer, that is not a bargain. The Piotroski F-score of 3/9 is a warning sign: balance sheet quality and operating efficiency are deteriorating. There is no dividend, so the investor gets no cash while waiting. Promoter holding of 54.12% is good, but it does not make the cycle go away. Fair value? I cannot put a number on it from these figures, but I know I want a margin of safety. I would not chase this near its 52-week high of ₹237.90. I would put it on the watch list and wait for either a more favourable rubber price cycle, better reported profitability, or a lower price. In commodities, patience is more valuable than conviction.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer