Why is Centrum Capital falling/rising?

Sep 22 2025 09:15 PM IST
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As of 22-Sep, Centrum Capital Ltd's stock price is at 36.60, down 0.92% and has underperformed recently with a total decline of 1.61% over the last two days. The stock's weak fundamentals, including a 0% average ROE and high debt-equity ratio, contribute to its expensive valuation and negative investor sentiment.
As of 22-Sep, Centrum Capital Ltd's stock price is currently at 36.60, reflecting a decrease of 0.34, or 0.92%. The stock has been underperforming, having fallen consecutively for the last two days, resulting in a total decline of 1.61% during this period. Additionally, the stock's delivery volume has decreased significantly, down by 38.69% compared to the 5-day average, indicating a drop in investor participation. Over the past week, the stock has gained 1.10%, but it has seen a decline of 7.83% over the past month. The company's fundamentals are weak, with an average Return on Equity (ROE) of 0% and a high debt-equity ratio of 58.09 times, contributing to its expensive valuation relative to peers.

Broader market context shows that while Centrum Capital has underperformed its sector today by 1.34%, it has outperformed the Sensex over the past week, which gained 0.46%. However, the stock's long-term performance is concerning, as it has generated a return of -0.35% over the past year, despite a 21.8% increase in profits. This discrepancy suggests that the market is reacting negatively to the company's high debt levels and low operational efficiency, which are likely influencing investor sentiment and leading to the recent price decline.
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