Why is Capital Trust falling/rising?

Jul 02 2025 09:24 PM IST
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As of 02-Jul, Capital Trust Ltd's stock price is Rs 73.40, down 1.54%, reflecting a significant decline of 23.53% over the past month and weak long-term fundamentals. The stock is considered overvalued compared to peers, with a return on equity of only 0.63%, amidst a broader market that has seen positive returns.
As of 02-Jul, Capital Trust Ltd is experiencing a decline in its stock price, currently at Rs 73.40, reflecting a decrease of Rs 1.15 or 1.54%. The stock has underperformed its sector by 0.31% today and has seen a trend reversal after two consecutive days of gains. It touched an intraday low of Rs 72.5, indicating a drop of 2.75%. Over the past week, the stock has decreased by 2.65%, and its performance over the last month shows a significant decline of 23.53%. The company has also reported weak long-term fundamentals, with a return on equity of only 0.63% and negative growth in net sales and operating profit. Additionally, the stock is trading at a premium compared to its peers, with a price-to-book value of 2.2, which suggests it is overvalued given its poor performance.

In the broader market context, the Sensex has increased by 0.79% over the past week, contrasting sharply with Capital Trust's decline. This underperformance is further highlighted by the stock's returns over various periods, including a 30.98% drop year-to-date and a 33.75% decline over the past year, while the benchmark has shown a positive return of 6.75% in the same timeframe. The falling investor participation, with a significant drop in delivery volume, indicates a lack of confidence among investors, contributing to the stock's downward trajectory. Overall, the combination of weak fundamentals, poor recent performance, and unfavorable market conditions has led to the stock's decline.
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