Why is DCM Shriram Inds falling/rising?

Jul 10 2025 10:10 PM IST
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As of 10-Jul, DCM Shriram Industries Ltd's stock price is 169.95, down 0.32%, with a significant decline in delivery volume and a 21.90% drop over the past year. The company's high Debt to EBITDA ratio raises concerns about its debt servicing ability, contributing to waning investor confidence.
As of 10-Jul, DCM Shriram Industries Ltd is experiencing a decline in its stock price, currently at 169.95, down by 0.55 or 0.32%. The stock has underperformed its sector by 0.48% today, and its delivery volume has significantly decreased by 45.25% compared to the 5-day average, indicating falling investor participation. Over the past week, the stock has dropped by 1.62%, and it has shown a substantial decline of 21.90% over the past year, while profits have fallen by 12.1%. The company also has a high Debt to EBITDA ratio of 2.72 times, which raises concerns about its ability to service debt, further contributing to negative sentiment around the stock.

In the broader market context, the Sensex has shown a slight decline of 0.06% over the past week, contrasting with DCM Shriram's more significant drop. While the market has generated positive returns of 6.46% year-to-date, DCM Shriram's year-to-date return is a negative 7.49%. This underperformance relative to the benchmark suggests that investor confidence in DCM Shriram is waning, especially given that domestic mutual funds hold no stake in the company, potentially indicating a lack of comfort with its current valuation or business prospects.
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