Why is DCM Shriram Inds falling/rising?

Sep 24 2025 10:54 PM IST
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As of 24-Sep, DCM Shriram Industries Ltd's stock price is declining at 169.35, down 1.22%, with mixed recent performance and significant challenges including a high Debt to EBITDA ratio and a negative year-to-date return of -7.81%. Despite some institutional interest, the company's long-term growth prospects remain weak, contributing to its downward trend.
As of 24-Sep, DCM Shriram Industries Ltd is experiencing a decline in its stock price, currently at 169.35, which reflects a decrease of 2.1 or 1.22%. The stock has shown mixed performance in recent periods, with a 1-week return of -0.53% and a 1-month return of +4.76%. Despite outperforming its sector today by 0.39%, the stock is trading below its 100-day and 200-day moving averages, indicating some weakness in the longer-term trend. Additionally, while the company has seen an increase in institutional investor participation, with a 0.88% rise in stake, it also faces challenges such as a high Debt to EBITDA ratio of 2.72 times and a significant drop in profits over the past year, which has contributed to its overall negative return of -18.44%.

In the broader market context, the stock's recent performance contrasts with the benchmark Sensex, which has declined by 1.18% over the past week. Although DCM Shriram Industries Ltd has outperformed the sector slightly today, its year-to-date performance remains poor at -7.81%, compared to the Sensex's gain of 4.58%. The company's low ability to service debt and poor long-term growth prospects, evidenced by a mere 2.12% annual growth in net sales over the last five years, further exacerbate investor concerns. Overall, while there are some positive indicators such as rising institutional interest, the stock's fundamental weaknesses and recent negative financial results are likely contributing to its current downward price movement.
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