Why is Coffee Day Enter falling/rising?

Jun 27 2025 09:55 PM IST
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As of 27-Jun, Coffee Day Enterprises Ltd's stock price is declining at 36.79, down 1.71%, with a significant negative return of -33.81% over the past year and weak long-term fundamentals. Despite short-term outperformance against the benchmark, ongoing losses and high pledged promoter shares raise investor concerns.
As of 27-Jun, Coffee Day Enterprises Ltd is experiencing a decline in its stock price, currently at 36.79, reflecting a decrease of 0.64 or 1.71%. The stock has underperformed its sector by 2.28% today and has seen a consecutive fall over the last two days, resulting in a total return drop of 2.18%. Despite trading above its moving averages across various time frames, the stock has generated a negative return of -33.81% over the past year, with profits plummeting by 167.9%. The company's weak long-term fundamentals, highlighted by a -12.14% CAGR growth in net sales over the last five years and a poor EBIT to interest ratio of -1.67, contribute to the downward pressure on the stock price. Additionally, the high percentage of pledged promoter shares (28.79%) raises concerns, especially in a falling market.

In the broader market context, Coffee Day Enterprises has outperformed the benchmark in the short term, with a 10.75% return over the past week compared to the Sensex's 2.00%. However, this short-term performance contrasts sharply with its long-term underperformance, as the stock has consistently lagged behind the benchmark over the last three years. The company's negative results for the last three consecutive quarters, including a significant loss in profit after tax, further exacerbate investor concerns, leading to a cautious sentiment surrounding the stock.
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