Why is Dalmia Bharat falling/rising?

Sep 01 2025 08:47 PM IST
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As of 01-Sep, Dalmia Bharat Sugar & Industries Ltd is priced at 374.35, showing a slight increase but underperforming its sector. Despite a profit increase, the stock has declined 19.96% over the past year, indicating poor long-term growth prospects and low investor confidence.
As of 01-Sep, Dalmia Bharat Sugar & Industries Ltd is currently priced at 374.35, reflecting a slight increase of 0.1 (0.03%). The stock has underperformed its sector by 0.34% today, and while it is above the 20-day moving average, it is below the 5-day, 50-day, 100-day, and 200-day moving averages. The stock has experienced a decline of 19.96% over the past year, despite a 43.7% increase in profits, indicating a disconnect between profitability and stock performance. Additionally, the company has a low Debt to EBITDA ratio of 1.10 times, suggesting a strong ability to service debt, and it is trading at a discount compared to its peers. However, the stock's long-term growth prospects appear poor, with operating profit declining at an annual rate of 3.98% over the last five years, and recent financial results showing a significant drop in pre-tax profit.

In the broader market context, Dalmia Bharat's short-term performance has been relatively stable, with a 0.86% increase over the past month, contrasting with a 0.29% decline in the benchmark. However, the stock has consistently underperformed against the benchmark over the last three years, generating negative returns of 19.96% in the past year compared to a 2.43% decline in the Sensex. This consistent underperformance may deter investor confidence, as indicated by the low participation from domestic mutual funds, which hold only 0.01% of the company. Overall, while there are some positive factors supporting the stock, the negative indicators regarding growth and market sentiment contribute to its recent price movement.
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