Why is DCM Shriram Inds falling/rising?

Jul 07 2025 10:06 PM IST
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As of 07-Jul, DCM Shriram Industries Ltd is priced at 171.40, down 1.18%. The stock has underperformed its sector and the benchmark Sensex, showing a significant decline over the past year, with poor long-term growth prospects and high debt levels contributing to negative sentiment.
As of 07-Jul, DCM Shriram Industries Ltd is currently priced at 171.40, reflecting a decrease of 2.05, or 1.18%. The stock has recently underperformed its sector by 2.3% and has experienced a trend reversal, falling after two consecutive days of gains. In terms of returns, the stock has shown a 2.85% increase over the past week, but it has underperformed significantly over the last year with a decline of 19.13%. The company's financials indicate a high Debt to EBITDA ratio of 2.72 times, which suggests a low ability to service debt, and its profits have fallen by 12.1% over the past year, contributing to negative sentiment around the stock.

Broader market context shows that while the stock has had a positive return in the short term, it has lagged behind the benchmark Sensex, which has gained 1.53% over the past month. The stock's long-term growth prospects appear poor, with net sales growing at an annual rate of only 2.76% over the last five years. Additionally, domestic mutual funds hold no stake in the company, indicating a lack of confidence in its valuation or business prospects. Overall, these factors contribute to the stock's recent decline amidst a broader market that has been performing better.
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