Why is Advik Capital falling/rising?

Sep 16 2025 11:01 PM IST
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As of 16-Sep, Advik Capital Ltd's stock price is at 1.53, down 0.65%, and has underperformed with a 47.60% decline over the past year. Despite attractive valuation metrics, the company faces significant financial challenges, including a sharp drop in profits and sales, leading to decreased investor confidence.
As of 16-Sep, Advik Capital Ltd's stock price is currently at 1.53, reflecting a decrease of 0.01, or 0.65%. The stock has been underperforming, having lost 1.92% over the last three days, and it is currently trading lower than its 5-day, 100-day, and 200-day moving averages, although it is above the 20-day and 50-day averages. Additionally, the stock has shown a significant decline in investor participation, with delivery volume dropping by 69.55% compared to the 5-day average. Despite a very attractive valuation indicated by a ROCE of 6.6 and trading at a discount to peers, the company has faced negative financial results, including a 23.5% fall in profits and a 93.90% decline in net sales over the past nine months, contributing to its recent price movement.

In the broader market context, Advik Capital's short-term performance has been relatively better than the benchmark, with a 1-week return of 2.00% compared to the Sensex's 1.58%. However, the stock has consistently underperformed against the benchmark over the longer term, with a staggering 47.60% decline in the past year, while the Sensex has remained nearly flat at -0.73%. This consistent underperformance, combined with weak long-term fundamentals such as a high Debt to EBITDA ratio and negative operating profit results, suggests that the stock's recent decline is influenced by both internal financial struggles and a lack of confidence from investors.
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