Why is Bombay Burmah falling/rising?

Jul 18 2025 09:55 PM IST
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As of 18-Jul, Bombay Burmah Trading Corporation Ltd's stock price is 2,001.00, down 1.38%. Despite recent short-term gains, the stock has underperformed year-to-date and shows signs of underlying weaknesses, including low growth and limited confidence from domestic mutual funds.
As of 18-Jul, Bombay Burmah Trading Corporation Ltd's stock price is currently at 2,001.00, reflecting a decrease of 28.0 points or 1.38%. Today's price summary indicates that the stock has underperformed its sector by 0.72% and has experienced a trend reversal, falling after three consecutive days of gains. In terms of returns, the stock has shown a 3.14% increase over the past week and a 3.39% increase over the past month, but it has a year-to-date decline of 5.55% and a one-year decline of 10.11%. The company's low debt-to-equity ratio is a positive factor; however, the stock's poor long-term growth, indicated by a net sales growth rate of only 9.00% over the last five years and a recent decline in profit after tax, suggests underlying weaknesses that may be contributing to the recent price drop.

In the broader market context, while the Bombay Burmah stock has outperformed the Sensex over the past week and month, it has significantly underperformed on a year-to-date basis compared to the benchmark, which has risen by 4.63%. The stock's valuation appears expensive with a price-to-book ratio of 2.5, and despite a return of -10.11% over the past year, its profits have increased by 49.1%, resulting in a PEG ratio of 0.3. Additionally, the low stake held by domestic mutual funds, at only 1.43%, may indicate a lack of confidence in the stock's current price or business prospects, further influencing its recent decline.
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