Why is AMD Industries falling/rising?

Jul 04 2025 08:46 PM IST
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As of 04-Jul, AMD Industries Ltd has seen a price increase to 54.94, up 12.1%, but has shown erratic trading and significant underperformance over the past year. Despite recent gains, long-term fundamentals remain weak, raising concerns about the sustainability of its upward movement.
As of 04-Jul, AMD Industries Ltd is experiencing a significant price increase, currently at 54.94, reflecting a rise of 5.93 or 12.1%. Despite this uptick, the stock has shown erratic trading patterns, having not traded on one day out of the last 20 days, and is currently trading below its moving averages across various time frames. Additionally, the stock has underperformed its sector by a substantial margin of 99.73%. Over the past week, AMD Industries has gained 10.43%, contrasting sharply with the Sensex, which has declined by 0.74%. However, the stock's year-to-date performance remains negative at -6.88%, and it has underperformed the market over the past year with a return of -27.92%. The company has a very attractive valuation with a ROCE of 9.1 and a PEG ratio of 0.7, indicating potential for growth despite its recent struggles.

In the broader market context, AMD Industries' short-term performance has outpaced the benchmark, as evidenced by its 10.43% gain over the past week compared to the Sensex's decline. However, the stock's long-term fundamentals are weak, with a poor average ROCE of 6.26% and a lack of growth in net sales and operating profit over the last five years. The company's ability to service its debt is also concerning, as indicated by a low EBIT to Interest ratio. Despite the recent price increase, the overall sentiment remains cautious due to the stock's significant underperformance over the past year and the flat results reported in March, which may lead investors to question the sustainability of this upward movement.
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