Why is Aakash Explor. falling/rising?

Jul 03 2025 10:23 PM IST
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As of 03-Jul, Aakash Exploration Services Ltd's stock price is declining at 11.04, down 3.33%, with a significant annual loss of 32.44% due to a 70.3% drop in profits. Despite a recent monthly increase of 40.28%, weak long-term fundamentals and declining sales are pressuring the stock.
As of 03-Jul, Aakash Exploration Services Ltd is experiencing a decline in its stock price, currently at 11.04, which reflects a decrease of 0.38 or 3.33%. The stock has underperformed its sector by 3.53% today, despite being higher than the 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has fallen by 4.00%, while it has shown a significant increase of 40.28% over the past month. However, the stock has generated a negative return of 32.44% over the last year, coinciding with a substantial drop in profits by 70.3%. The company has a fair valuation with a return on capital employed (ROCE) of 10.5%, but its weak long-term fundamentals, including a -19.11% CAGR growth in operating profits over the last five years, contribute to the current downward pressure on the stock.

In the broader market context, the stock's recent performance contrasts sharply with the benchmark, as the BSE500 has generated a return of 2.20% over the last year, while Aakash Exploration has significantly underperformed. The company's net sales have also declined by 8.2%, and its profit after tax has decreased by 42.07%, indicating ongoing challenges. Despite trading at a discount compared to its peers' average historical valuations, the weak financial results and the company's inability to generate a satisfactory return on equity (averaging 7.85%) suggest that investor confidence is waning, leading to the stock's current decline.
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