Why is Aptech falling/rising?

Aug 04 2025 09:31 PM IST
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As of 04-Aug, Aptech Ltd's stock price is Rs 135.10, up 5.03% after two days of decline, but it has underperformed its sector and shows significant long-term declines. Despite a high dividend yield, the company's poor growth prospects and low return on equity raise concerns among investors.
As of 04-Aug, Aptech Ltd's stock price is currently at Rs 135.10, reflecting an increase of Rs 6.47 or 5.03%. Today's performance indicates a trend reversal, as the stock has gained after two consecutive days of decline. Despite this uptick, the stock has underperformed its sector by 0.26%. Over the past week, Aptech has shown a modest gain of 1.81%, but it has experienced significant declines over longer periods, with a 12.24% drop in the last month and a staggering 39.57% decrease over the past year. The company's operating profit growth has been lackluster at an annual rate of 9.70% over the last five years, and its return on equity (ROE) stands at a low 7.8%, suggesting a very expensive valuation relative to its peers. Furthermore, the stock's high dividend yield of 3.51% may attract some investors, but the overall sentiment remains cautious due to the company's poor long-term growth prospects.

In the broader market context, Aptech's recent performance contrasts with the Sensex, which has only increased by 0.16% over the past week. The IT - Education sector, where Aptech operates, has gained by 5.61%, indicating a positive trend in the sector that Aptech has not fully capitalized on. The stock's liquidity appears sufficient for trading, but falling investor participation, as indicated by a decline in delivery volume, raises concerns about sustained interest. Additionally, the low stake held by domestic mutual funds may reflect a lack of confidence in the company's future performance, further contributing to the stock's struggles in both the near and long term.
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