Why is Akar Auto Indust falling/rising?

Jul 21 2025 09:34 PM IST
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As of 21-Jul, Akar Auto Industries Ltd's stock price is Rs 162.80, down 0.73%, following a two-day decline. Despite strong long-term performance, recent drops in investor participation suggest a temporary setback, but the stock remains a hold due to attractive valuation metrics.
As of 21-Jul, Akar Auto Industries Ltd is experiencing a decline in its stock price, currently at Rs 162.80, which reflects a decrease of Rs 1.2 or 0.73%. The stock has been losing value for the past two days, with a total drop of 1.03% during this period. Despite touching an intraday high of Rs 170.6 earlier in the day, it also reached a low of Rs 158.35. The stock's performance over the past month shows a positive return of 6.51%, and it has significantly outperformed the benchmark indices over longer periods, including a 50.74% return over the last year. However, the recent decline may be attributed to falling investor participation, as evidenced by an 85.13% drop in delivery volume compared to the 5-day average.

In the broader market context, Akar Auto's short-term performance has been less favorable compared to the Sensex, which has only seen a decline of 0.06% over the same week. While the stock has shown strong long-term performance, with returns of 204.87% over three years and 1003.73% over five years, the recent price movement suggests a temporary setback. The stock is still considered a hold due to its attractive valuation metrics, including a return on capital employed (ROCE) of 18.5 and a PEG ratio of 1.8, indicating that it is trading at a discount compared to its peers.
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