Why is Batliboi falling/rising?

Jul 09 2025 08:51 PM IST
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As of 09-Jul, Batliboi Ltd's stock price is Rs 119.40, down 1.2% and underperforming its sector. Despite strong cash flow and sales, weak long-term fundamentals and recent declines indicate a challenging outlook for the stock.
As of 09-Jul, Batliboi Ltd's stock price is currently at Rs 119.40, reflecting a decline of Rs 1.45 or 1.2%. The stock has been underperforming recently, having fallen consecutively for three days, resulting in a total decline of 4.17% during this period. Today's performance indicates that it has underperformed its sector by 1.52%. Additionally, the stock's moving averages show it is higher than the 50-day and 100-day averages but lower than the 5-day, 20-day, and 200-day averages. Despite having strong cash and cash equivalents, net sales, and profit before depreciation, interest, and taxes (PBDIT) at their highest levels, the stock's long-term fundamentals are weak, highlighted by a low return on capital employed (ROCE) and poor growth in net sales over the past five years.

In the broader market context, Batliboi's short-term performance has been disappointing compared to the benchmark Sensex, which has gained 0.15% over the past week while Batliboi has declined by 3.08%. The stock's year-to-date performance shows a significant underperformance, with a decline of 8.37% compared to the Sensex's increase of 6.91%. This disparity reflects a lack of investor confidence, as evidenced by a 41.56% drop in delivery volume against the 5-day average, indicating falling investor participation. Overall, while the company has some positive financial metrics, the combination of weak long-term fundamentals and recent price declines suggests a challenging outlook for the stock.
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