Why is Bannari Amm Spg. falling/rising?

Aug 13 2025 09:44 PM IST
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As of 13-Aug, Bannari Amman Spinning Mills Ltd's stock price is 29.82, with a slight recent increase but a significant year-over-year decline of -44.77%. Despite strong net profit growth and positive quarterly results, the stock's long-term performance and fundamental weaknesses raise concerns about its sustainability.
As of 13-Aug, Bannari Amman Spinning Mills Ltd's stock price is currently at 29.82, reflecting a slight increase of 0.01 (0.03%). The stock has been gaining for the last two days, with a return of 2.9% during this period, although it underperformed its sector by 0.31%. In terms of longer-term performance, the stock has generated a return of -44.77% over the past year, which is significantly lower than the benchmark Sensex's return of +2.01%. Despite these challenges, the company has reported a remarkable growth in net profit of 147.83% and has declared positive results for the last four consecutive quarters, which may contribute to the recent uptick in stock price.

Broader market context indicates that while Bannari Amman Spinning Mills has shown some short-term gains, its long-term performance remains concerning, with a -44.26% year-to-date return compared to the Sensex's +3.07%. The stock's weak long-term fundamental strength, highlighted by a -2.03% CAGR growth in net sales over the last five years and a high debt-to-EBITDA ratio of 8.84 times, raises questions about its sustainability. Additionally, the stock has consistently underperformed against the benchmark over the last three years, which may dampen investor confidence despite the recent positive earnings reports.
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