Why is Airo Lam falling/rising?

Sep 11 2025 10:50 PM IST
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As of 11-Sep, Airo Lam Ltd's stock price is at 107.66, down 0.77%, with a significant drop in delivery volume and a year-long return of -18.76%. Despite an attractive valuation, weak long-term fundamentals and recent negative financial results indicate ongoing challenges for the company.
As of 11-Sep, Airo Lam Ltd's stock price is currently at 107.66, reflecting a decrease of 0.83, or 0.77%. The stock has underperformed its sector today by 0.67%, and its delivery volume has significantly dropped by 74.19% compared to the 5-day average, indicating falling investor participation. Over the past year, the stock has generated a return of -18.76%, with profits declining by 71.5%. Although it has an attractive valuation with a Return on Capital Employed (ROCE) of 4.8 and is trading at a discount compared to its peers, the company's weak long-term fundamentals, including a -27.46% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 3.44 times, contribute to its recent price movement.

In the broader market context, Airo Lam's short-term performance has lagged behind the benchmark, with a 1-week return of -0.43% compared to the Sensex's gain of 1.10%. This underperformance is further highlighted by the stock's negative returns over the past year and its inability to keep pace with the BSE500 index in various time frames. The company's low profitability, as indicated by an average Return on Equity of 8.88%, and the recent negative financial results, including a significant increase in interest expenses, suggest that the stock's decline is influenced by both internal challenges and external market conditions.
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