Why is Allcargo Termi falling/rising?

Jul 16 2025 11:07 PM IST
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As of 16-Jul, Allcargo Terminals Ltd's stock price is 32.33, up 3.03% over six days, but it has a year-to-date return of -14.47% and a -40.50% decline over the past year. Despite attractive valuation metrics, negative factors like high debt and reduced institutional investor participation may affect future performance.
As of 16-Jul, Allcargo Terminals Ltd's stock price is currently at 32.33, reflecting an increase of 0.95 or 3.03%. The stock has been on a positive trajectory, gaining for six consecutive days and achieving a total return of 14.52% during this period. It has outperformed its sector by 1.91% today. Despite this recent uptick, the stock has a year-to-date return of -14.47% and a significant decline of -40.50% over the past year, indicating a challenging longer-term performance. The stock's valuation appears attractive with a ROCE of 10 and a low enterprise value to capital employed ratio, but it has also faced negative factors such as a high debt to EBITDA ratio and a substantial drop in profits, which may weigh on investor sentiment.

In the broader market context, the Sensex has shown a slight decline of -1.08% over the past week while Allcargo Terminals Ltd has risen by 13.92%, highlighting its strong short-term performance relative to the benchmark. However, the stock's long-term underperformance is notable, as it has significantly lagged behind the market's positive return of 5.75% year-to-date. Additionally, the decrease in institutional investor participation, which has fallen by -0.69% in the last quarter, suggests a lack of confidence among more sophisticated investors, potentially impacting the stock's future performance.
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