Why is CP Capital falling/rising?

Sep 02 2025 10:49 PM IST
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As of 02-Sep, CP Capital Limited's stock price is Rs 145.30, down 3.04%, significantly underperforming its sector and the broader market. The stock has declined 14.43% over the past month and 71.51% over the past year, reflecting weak financial performance and low profitability.
As of 02-Sep, CP Capital Limited's stock price is currently at Rs 145.30, reflecting a decrease of Rs 4.55 or 3.04%. The stock has underperformed its sector today by 2.7%, following a trend reversal after three consecutive days of gains. It reached an intraday low of Rs 145.1, and the weighted average price indicates that more volume was traded closer to this low. Over the past week, the stock has shown a slight increase of 0.03%, but it has significantly underperformed over the past month with a decline of 14.43% and a staggering 71.51% drop over the past year. The company has a low debt-to-equity ratio of 0.06, and while it has a relatively attractive valuation with a price-to-book value of 0.5, its return on equity (ROE) of 7.7% and a poor management efficiency reflected by an average ROE of 5.25% indicate low profitability. Additionally, net sales have declined at an annual rate of 5.95% over the last five years, contributing to the stock's negative performance.

In the broader market context, the Sensex has experienced a slight decline of 0.78% over the past week, while CP Capital's performance has been notably worse, indicating a lack of investor confidence in the stock compared to the overall market. The stock's year-to-date performance shows a decline of 63.23%, contrasting sharply with the Sensex's gain of 2.58% during the same period. This significant underperformance in both the short and long term suggests that investors are reacting negatively to the company's poor financial results, including a 30.62% drop in profit after tax and a 15.6% fall in net sales in the most recent quarter. Overall, the combination of weak financial performance, low profitability, and declining sales has led to CP Capital's stock price falling amidst a generally stable market environment.
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