Why is Dhunseri Tea falling/rising?

Aug 13 2025 09:10 PM IST
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As of 13-Aug, Dhunseri Tea & Industries Ltd. is facing a stock price decline to Rs 201.00, with a year-to-date drop of 23.86% despite recent short-term gains. The company's weak long-term fundamentals and inability to service debt contribute to cautious investor sentiment.
As of 13-Aug, Dhunseri Tea & Industries Ltd. is experiencing a decline in its stock price, currently at Rs 201.00, down by 2.0 (-0.99%). The stock has underperformed its sector by 1.68% today and has shown a trend reversal after two consecutive days of gains. Over the past week, the stock has increased by 3.53%, but it has not performed well over the longer term, with a year-to-date decline of 23.86% and a one-year return of -18.66%. Positive financial results reported on June 25, including significant growth in profit before tax and net sales, have not been enough to offset the company's weak long-term fundamentals, characterized by a -283.68% CAGR growth in operating profits over the last five years and a negative EBITDA situation.

Broader market context indicates that while the stock has shown some short-term recovery, it continues to lag behind the benchmark, with the Sensex showing a slight decline of 0.01% over the past week. The stock's performance has been inconsistent, with a significant underperformance against the benchmark over the last three years. Despite a rise in investor participation, as evidenced by a 382.53% increase in delivery volume, the overall sentiment remains cautious due to the company's weak ability to service its debt and low profitability per unit of shareholders' funds.
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