Harrisons Malayalam Limited

Consumer Defensive — Farm Products · NSE

₹169.00+₹0.95 (+0.57%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

The 60-second version of Harrisons Malayalam Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Harrisons Malayalam Limited engages in the plantations for tea and rubber in India and internationally. The company operates in three segments: Tea, Rubber, and Others.

IndustryFarm Products

SectorConsumer Defensive

Employees6,731

Annual revenue₹510 Cr

How does it make money?

Turns over ₹510 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 6,731 employees supports ₹7.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹7.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are HINDUSTAN UNILEVER LTD., ITC LTD, NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 14.3% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE51.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +11% while net margin moved +48% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+11%

Margin effect+48%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.45 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

11.5x

3Y Median

21.3x

40 monthly readings · mean 21.1x · range 10.6x–33.3x

Sector Median

43.3x

median of 4 sector peers

🟢Current valuation is approximately 46% below its 3y median of 21.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 73% below the peer median of 43.3x.

vs. its own history

Cheap

21.3x median over 40 months · -46%

vs. sector peers

Cheap

43.3x median of 4 peers · -73%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

10.8x

PEG

0.64

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 11.4% to 16.3%.
Return on capital is rising
ROCE has improved from 11.5% to 14.3%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 watch

🟡Receivables growing faster than salesFinancial
Receivables up 34% against revenue up 11% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.45 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 46% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 73% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 34% against revenue up 11%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 3.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 6%✓ 7.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✓ 3.4x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 3.6% CAGR
Latest reported year was 7.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹312 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.5x

Cheap

Cheap against the generic band

P/B Ratio

1.74x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.71

Profitable

Profitable on a per-share basis

ROE

16.3%

Strong

Strong capital efficiency

ROCE

14.3%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.62x

Moderate

Moderate leverage

Revenue Growth (YoY)

7.3%

Modest

Modest growth

Profit Growth (YoY)

-34.1%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.3%

Weak

Thin margins leave little room for error

Net Margin

5.0%

Average

Average bottom-line conversion

Current Ratio

0.45

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

18%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

173.3 / 188.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹459 Cr	₹459 Cr	₹486 Cr	₹510 Cr	+3.6%
EBITDA	₹34 Cr	₹19 Cr	₹34 Cr	₹39 Cr	+4.7%
EBITDA Margin	7.3%	4.1%	7.0%	7.6%	—
PAT (Net Profit)	₹18 Cr	-₹7 Cr	₹15 Cr	₹29 Cr	+17.9%
EPS	₹9.63	₹-3.96	₹8.07	₹15.79	+17.9%
ROE	11.4%	-5.1%	9.7%	16.3%	—
ROCE	11.5%	2.3%	10.7%	14.3%	—
Total Debt	₹95 Cr	₹98 Cr	₹103 Cr	₹111 Cr	+5.1%
Free Cash Flow	₹3 Cr	₹11 Cr	₹6 Cr	₹4 Cr	+5.5%

🟢 Revenue has grown at 3.6% a year over 3 years.

🟢 EBITDA has grown at 4.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.6% over 3 years.

🟢 PAT (Net Profit) has grown at 17.9% a year over 3 years.

🟢 EPS has grown at 17.9% a year over 3 years.

🟢 ROE has risen from 11.4% to 16.3% over 3 years (+4.9 pts).

🟢 ROCE has risen from 11.5% to 14.3% over 3 years (+2.8 pts).

🔴 Total Debt has grown at 5.1% a year over 3 years.

🟢 Free Cash Flow has grown at 5.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹502 Cr

Total Liabilities

₹323 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹25 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

30.4%

Insider Holding

31.2%

Corporate Actions

Ex-Dividend Date

21 Aug 2014

Peer Comparison

Company	P/E	ROE
HINDUSTAN UNILEVER LTD.	42.5x	21.5%
ITC LTD	16.6x	27.4%
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%

Recent News

1 mixed5 general

Harrison Malayalam Share Price

Upstox, 16 Oct

Harrisons Malayalam Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Harrisons Malayalam Ltd Forms Death Cross, Signalling Bearish Trend Ahead

MarketsMojo, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Harrisons Malayalam vs Nifty 50: Share Price Performance Compared

Univest, 25 Sept

Harrisons Malayalam Limited Announces Resignation of Company Secretary and Compliance Officer

scanx.trade, 13 Apr

Harrisons Malayalam Share Price Forecast: 3 Year Outlook to 2030

Univest, 17 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongGrowth · Profitability · Valuation

MiddlingBusiness Quality · Financial Health

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Revenue growth stays above 4% a year · see Key things to watch ↑