Why is Allcargo Termi falling/rising?

Jul 25 2025 11:00 PM IST
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As of 25-Jul, Allcargo Terminals Ltd's stock price is declining at 32.16, down 0.4%, with a total drop of 5.96% over the last four days. The company faces significant challenges, including a 37.57% annual stock value drop and weak long-term fundamentals, leading to concerns among investors.
As of 25-Jul, Allcargo Terminals Ltd is experiencing a decline in its stock price, currently at 32.16, which reflects a decrease of 0.13 or 0.4%. The stock has been on a downward trend, having fallen consecutively for the last four days, resulting in a total decline of 5.96% during this period. Despite outperforming its sector by 0.54% today, the stock's performance over the past week shows a loss of 4.11%, while it has gained 9.50% over the past month. However, the company has faced significant challenges, including a 37.57% drop in stock value over the past year and a 22% decline in profits. The stock's valuation appears attractive with a ROCE of 10 and a favorable enterprise value to capital employed ratio, but it is trading at a discount compared to its peers.

Broader market context indicates that while the Sensex has shown a slight decline of 0.36% over the past week, Allcargo's performance has been significantly worse, highlighting its underperformance relative to the market. The company's weak long-term fundamentals, characterized by a -11.28% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 3.31 times, contribute to investor concerns. Additionally, institutional investors have reduced their stake in the company, which may further impact market confidence. Overall, the combination of falling investor participation, weak financial metrics, and significant underperformance against the benchmark suggests that the stock's recent decline is driven by both company-specific issues and broader market dynamics.
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