Why is Archidply Inds. falling/rising?

Aug 28 2025 09:29 PM IST
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As of 28-Aug, Archidply Industries Ltd has seen a short-term price increase to 99.05, outperforming its sector recently, but it has a negative return of -29.22% over the past year and significant challenges including high debt and declining profitability. The long-term outlook remains concerning despite attractive valuation metrics.
As of 28-Aug, Archidply Industries Ltd is experiencing a price increase, with the current price at 99.05, reflecting a change of 0.85 or 0.87% upward. Today's price summary indicates that the stock has outperformed its sector by 2.04% and has gained after two consecutive days of decline. However, despite this short-term uptick, the stock has shown a negative return of -10.32% over the past month and -29.22% over the past year, while its profits have plummeted by -287.7%. The company has an attractive valuation with a Return on Capital Employed (ROCE) of 2.8 and is trading at a discount compared to its peers, but it also faces significant challenges, including a high Debt to EBITDA ratio of 6.34 times and a weak long-term fundamental strength with a -18.19% CAGR growth in operating profits over the last five years.

In the broader market context, the stock's recent performance contrasts sharply with the benchmark, as it has outperformed the Sensex by 2.34% over the past week, while the Sensex has declined by -2.34%. However, the stock has underperformed the market significantly over the past year, with a return of -29.22% compared to the BSE500's -5.01%. This underperformance, coupled with a high debt burden and declining profitability, suggests that while there may be short-term gains, the long-term outlook remains concerning for Archidply Industries Ltd.
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