Why is Accuracy Shippi. falling/rising?

Sep 12 2025 11:05 PM IST
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As of 12-Sep, Accuracy Shipping Ltd's stock price is 7.15, showing a slight increase but significantly underperforming with a year-to-date decline of -30.31% and a -43.92% drop over the past year. Despite attractive valuation metrics, the company faces challenges such as declining profits and high debt levels, leading to a concerning overall outlook.
As of 12-Sep, Accuracy Shipping Ltd's stock price is currently at 7.15, reflecting an increase of 0.04 or 0.56%. The stock's performance today is in line with the sector, although it is trading above its 5-day and 20-day moving averages while remaining below the 50-day, 100-day, and 200-day moving averages. Despite a recent 1-week return of +2.88% and a 1-month return of +3.77%, the stock has significantly underperformed over the longer term, with a year-to-date decline of -30.31% and a staggering -43.92% drop over the past year. The company has a very attractive valuation with a return on capital employed (ROCE) of 7.6 and is trading at a discount compared to its peers. However, the stock has faced challenges, including a -61.3% decline in profits over the past year and a high debt-to-EBITDA ratio of 3.16, indicating low ability to service debt.

In the broader market context, the Sensex has shown a positive return of +1.51% over the past week and +2.56% over the past month, contrasting with Accuracy Shipping's short-term gains. The stock's long-term performance has been poor, with a -70.03% return over the past three years compared to a +40.02% gain in the benchmark. This underperformance is compounded by weak long-term fundamentals, including a -13.63% compound annual growth rate in operating profits over the last five years and a low average return on equity of 8.01%. The combination of falling investor participation, as indicated by a -32.34% drop in delivery volume, and negative financial metrics suggests that while there may be short-term gains, the overall outlook for Accuracy Shipping Ltd remains concerning.
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