Why is Centrum Capital falling/rising?

Jul 01 2025 08:48 PM IST
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As of 01-Jul, Centrum Capital Ltd is currently priced at 34.70, reflecting a recent 2.33% increase and strong short-term performance, but it has weak long-term fundamentals with a 0% ROE and a significant profit decline. The stock's volatility is evident as it has underperformed the market over the past year, raising concerns about the sustainability of its recent gains.
As of 01-Jul, Centrum Capital Ltd is experiencing a price increase, currently at 34.70, reflecting a change of 0.79 or 2.33% upward. The stock has shown strong performance recently, gaining 9.95% over the last three days and outperforming its sector by 2.47% today. Additionally, it is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. However, despite these positive short-term indicators, the company has a weak long-term fundamental strength, evidenced by an average Return on Equity (ROE) of 0% and a significant decline in profits by 89.1% over the past year. Furthermore, 54.89% of promoter shares are pledged, which could exert downward pressure on the stock in a falling market.

In the broader market context, Centrum Capital's short-term return of 11.90% over the past week significantly outpaces the Sensex's return of 2.00% during the same period. However, over the last year, the stock has underperformed the market, generating a return of -10.47% compared to the BSE500's positive return of 3.20%. This contrast highlights the stock's volatility and challenges, particularly in light of its recent gains, which may not be sustainable given its long-term performance issues and the increasing proportion of pledged promoter shares.
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