Why is Airo Lam falling/rising?

Aug 12 2025 10:45 PM IST
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As of 12-Aug, Airo Lam Ltd's stock price is 107.52, with a slight increase today but a significant decline of 17.60% over the past year. Despite recent investor interest, the company's weak long-term fundamentals and substantial profit decline indicate ongoing challenges.
As of 12-Aug, Airo Lam Ltd's stock price is currently at 107.52, reflecting a slight increase of 0.07 (0.07%). The stock has outperformed its sector today by 1.25%, and its delivery volume has risen significantly, indicating increased investor participation. However, the stock has shown a decline of 9.15% over the past month and a substantial drop of 17.60% over the past year, despite a strong performance over the last three and five years. The company's return on capital employed (ROCE) is low at 5, and it is trading at a discount compared to its peers, but it has also faced a significant profit decline of 71.5% over the past year, which negatively impacts investor sentiment.

In the broader market context, Airo Lam's recent performance contrasts with the benchmark Sensex, which has seen a slight decline of 0.67% over the past week and a modest gain of 3.56% year-to-date. The stock's long-term fundamentals are weak, with a -27.46% compound annual growth rate in operating profits over the last five years and a high debt-to-EBITDA ratio of 2.66, indicating challenges in servicing debt. Despite the recent uptick in price, the overall negative trends in profitability and returns compared to the market suggest that the stock remains under pressure, contributing to its overall decline in value.
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