Why is Allcargo Gati falling/rising?

Sep 22 2025 09:25 PM IST
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As of 22-Sep, Allcargo Gati Ltd's stock price is at 61.91, down 0.42%. The stock has shown mixed performance, underperforming over the long term with weak fundamentals and a bearish outlook, making it a strong sell.
As of 22-Sep, Allcargo Gati Ltd's stock price is currently at 61.91, reflecting a decrease of 0.26, or 0.42%. The stock has shown mixed performance recently, with a 1-week return of +0.67%, but a significant decline of -2.12% over the past month. Today's price summary indicates that the stock has outperformed its sector by 0.4%, yet it is trading below all key moving averages, suggesting a bearish trend. The company has weak long-term fundamentals, evidenced by a low Return on Capital Employed (ROCE) of 0.27% and poor growth in net sales and operating profit over the last five years. Additionally, the recent financial results have been disappointing, with a substantial drop in profit before tax and net sales, which further contributes to the negative sentiment around the stock.

In the broader market context, while the stock has outperformed the Sensex by 0.21% over the past week, it has significantly underperformed over longer periods, with a year-to-date return of -31.40% compared to the Sensex's +5.15%. This consistent underperformance against the benchmark over the last three years raises concerns among investors, particularly as domestic mutual funds hold no stake in the company, indicating a lack of confidence in its future prospects. The stock's high risk profile, characterized by negative operating profits and a low EBIT to interest ratio, adds to the overall bearish outlook, making it a strong sell in the current market environment.
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