Why is Capital India falling/rising?

Jul 28 2025 10:04 PM IST
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As of 28-Jul, Capital India Finance Ltd's stock price is declining at 36.75, down 0.97% and has fallen 3.31% over the last three days. Despite a strong annual return of 69.35%, the stock shows weak fundamentals and a significant drop of 8.88% over the past month, indicating investor concerns.
As of 28-Jul, Capital India Finance Ltd is experiencing a decline in its stock price, currently at 36.75, which represents a decrease of 0.36 or 0.97%. The stock has been underperforming recently, having fallen consecutively for the last three days, resulting in a total decline of 3.31% during this period. Although it has outperformed its sector by 0.4% today, the stock's performance over the past month shows a significant drop of 8.88%. Additionally, the stock's long-term fundamentals appear weak, with a low Return on Equity (ROE) of 0.54% and a concerning debt-equity ratio of 1.59 times. Despite generating a notable return of 69.35% over the past year, the company's profits have decreased by 67%, indicating that the stock is trading at a premium compared to its peers.

In the broader market context, the stock's short-term performance of -1.74% over the past week is slightly worse than the benchmark Sensex, which has declined by 1.59%. The overall market has faced negative returns, with the BSE500 down by 2.52% in the last year, yet Capital India has managed to outperform this benchmark significantly over the longer term. However, the recent drop in investor participation, evidenced by a 28.25% decrease in delivery volume compared to the five-day average, suggests a lack of confidence among investors, which may be contributing to the stock's current downward trend.
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