Why is Aegis Logistics falling/rising?

Aug 08 2025 10:06 PM IST
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As of 08-Aug, Aegis Logistics Ltd's stock price is at 712.10, down 1.43%, and has underperformed its sector. Despite strong long-term growth, recent negative quarterly results and a significant drop in delivery volume have contributed to its decline.
As of 08-Aug, Aegis Logistics Ltd is experiencing a decline in its stock price, currently at 712.10, which reflects a decrease of 10.3 points or 1.43%. The stock has underperformed its sector by 1.19% today, and it is trading below its moving averages across various time frames, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. Over the past week, the stock has shown a slight increase of 0.58%, but it has declined by 5.70% over the past month and 13.29% year-to-date. The recent performance has been negatively impacted by a significant drop in delivery volume, which fell by 32.38% compared to the 5-day average. Despite having a high management efficiency indicated by a ROCE of 15.18% and a strong ability to service debt, the company has reported negative quarterly results, including a 20.8% decline in PAT compared to the previous four-quarter average, contributing to the stock's downward movement.

In the broader market context, Aegis Logistics' recent performance contrasts with the benchmark Sensex, which has seen a decline of 0.92% over the past week but a positive return of 2.20% year-to-date. While the stock has shown strong long-term growth with a 147.09% increase over the past three years, its short-term performance has been lackluster, particularly in light of the negative quarterly results and an expensive valuation reflected in its high enterprise value to capital employed ratio. The stock's PEG ratio of 2.8 further suggests that it may be overvalued relative to its earnings growth, which could deter potential investors and contribute to the ongoing decline in its price.
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