Why is Aakash Explor. falling/rising?

Aug 11 2025 11:16 PM IST
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As of 11-Aug, Aakash Exploration Services Ltd is currently priced at 10.20, reflecting a 1.69% increase, but has a troubling one-year return of -21.78% and weak long-term fundamentals. Despite recent gains, caution is advised for investors due to significant historical losses and declining profits.
As of 11-Aug, Aakash Exploration Services Ltd is experiencing a price increase, currently at 10.20, reflecting a change of 0.17 or 1.69% upward. The stock has outperformed its sector by 0.68% today and is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has shown a return of +3.76%, contrasting with a decline of -0.56% in the Sensex. However, despite this recent uptick, the stock has a troubling one-year return of -21.78%, with profits having fallen significantly by -81.4%. The company has a fair valuation with a return on capital employed (ROCE) of 10.5, but it is trading at a discount compared to its peers' historical valuations, indicating potential for recovery.

In the broader market context, Aakash Exploration has underperformed the market over the last year, where the BSE500 index recorded a negative return of -1.85%. The company's long-term fundamentals are weak, evidenced by a -23.93% compound annual growth rate (CAGR) in operating profits over the past five years and an average return on equity of only 7.85%. Additionally, the recent financial results show a decline in net sales and profit after tax, which further complicates its outlook. While the stock is currently rising, the significant historical losses and weak fundamentals suggest caution for investors considering its long-term potential.
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