Why is Dec.Gold Mines falling/rising?

Jul 02 2025 10:05 PM IST
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As of 02-Jul, Deccan Gold Mines Ltd's stock price is Rs 146.40, down 0.91%, with a recent two-day decline of 3.81%. Despite a strong long-term performance, the company faces challenges such as operating losses and poor growth prospects, reflected in a negative EBITDA and lack of mutual fund investment.
As of 02-Jul, Deccan Gold Mines Ltd is experiencing a decline in its stock price, currently at Rs 146.40, which reflects a decrease of Rs 1.35 or 0.91%. The stock has underperformed its sector by 0.33% today and has been on a consecutive downward trend for the last two days, resulting in a total decline of 3.81%. Despite this recent downturn, the stock has shown strong performance over the longer term, with a year-to-date return of 28.99% and a remarkable 513.84% increase over the past three years. However, the company faces significant challenges, including operating losses and a weak long-term fundamental strength, as indicated by a negative EBITDA and a high Debt to EBITDA ratio.

In the broader market context, Deccan Gold Mines' short-term performance has been notably better than the benchmark Sensex, which has only increased by 0.79% over the past week, while the stock itself has risen by 5.78%. Despite these positive short-term comparisons, the stock's recent struggles are compounded by poor long-term growth prospects, as evidenced by a significant decline in operating profit over the past five years. Additionally, the lack of domestic mutual fund investment in the company may indicate a lack of confidence in its future performance, further contributing to the stock's current downward trajectory.
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