Why is Allcargo Termi falling/rising?

Jul 21 2025 10:53 PM IST
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As of 21-Jul, Allcargo Terminals Ltd is priced at 34.20, with a recent short-term performance increase but a negative year-to-date return of -9.52% and a significant decline of -32.54% over the past year. Despite outperforming the Sensex recently, concerns about declining investor participation and weak fundamentals persist.
As of 21-Jul, Allcargo Terminals Ltd is currently priced at 34.20, reflecting an increase of 0.66 or 1.97%. The stock has shown strong performance in the short term, with a 1-week return of +15.15% and a 1-month return of +20.34%, significantly outperforming the Sensex, which has seen negligible movement. However, despite this recent uptick, the stock has a negative year-to-date return of -9.52% and a substantial decline of -32.54% over the past year. The stock is trading above its moving averages across various time frames, indicating a positive short-term trend. Nonetheless, there are concerns regarding falling investor participation, as delivery volumes have decreased by -46.18% compared to the 5-day average. Additionally, the company's fundamentals show weaknesses, such as a high Debt to EBITDA ratio and a significant decline in profits, which could be contributing to investor caution.

In the broader market context, while Allcargo Terminals Ltd has outperformed the Sensex in the short term, it has underperformed over the past year, with the Sensex generating a return of +1.98% compared to the stock's -32.54%. This stark contrast highlights the challenges faced by the company, including weak long-term growth prospects and declining institutional investor interest, which may be affecting overall market sentiment towards the stock. The recent positive price movement may be driven by short-term trading dynamics rather than a fundamental recovery, as indicated by the company's ongoing struggles with profitability and debt management.
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