Why is Akums Drugs falling/rising?

Aug 15 2025 12:29 AM IST
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As of 14-Aug, Akums Drugs & Pharmaceuticals Ltd's stock price is Rs 471.90, down 3.2%, and has underperformed its sector. Despite a significant profit increase, the stock has a poor long-term outlook and has generated a -51.29% return over the past year, reflecting declining investor interest and weak growth prospects.
As of 14-Aug, Akums Drugs & Pharmaceuticals Ltd is experiencing a decline in its stock price, currently at Rs 471.90, reflecting a decrease of Rs 15.6 or 3.2%. Today's price summary indicates that the stock has underperformed its sector by 3.32% and has fallen after two consecutive days of gains. The stock touched an intraday low of Rs 469.25, and trading volume has significantly decreased, with delivery volume falling by 65.89% compared to the five-day average. Over the past year, the stock has generated a return of -51.29%, despite a substantial profit increase of 1362%, indicating a disconnect between profitability and stock performance. Additionally, while the company has a low debt-to-equity ratio and an attractive valuation with a price-to-book value of 2.4, its long-term growth prospects appear poor, with net sales growing at an annual rate of only 6.10%.

In the broader market context, the stock's short-term performance has been notably worse than the benchmark, with a one-week return of -3.82% compared to a negligible change of -0.03% in the Sensex. This underperformance is consistent with the stock's longer-term trends, where it has lagged behind the BSE500 over various periods, including three years and one year. The flat results reported for June, including a significant drop in PAT and the lowest operating profit to interest ratio, further contribute to the negative sentiment surrounding the stock. Overall, the combination of declining investor participation, poor recent performance, and lackluster growth prospects has led to the current downward movement in Akums Drugs' stock price.
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