Why is Donear Inds. falling/rising?

Sep 01 2025 09:57 PM IST
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As of 01-Sep, Donear Industries Ltd is currently priced at Rs 96.96, showing a short-term recovery after a decline, but it has significant long-term challenges with a year-to-date drop of 36.81% and high debt levels. Despite outperforming the market recently, its overall fundamentals remain weak.
As of 01-Sep, Donear Industries Ltd is experiencing a price increase, currently at Rs 96.96, reflecting a rise of Rs 3.41 or 3.65%. Today's performance indicates a reversal after seven consecutive days of decline, with the stock outperforming its sector by 2.61%. Despite this positive movement, the stock remains 4.03% away from its 52-week low and has shown a decline of 3.04% over the past month. The stock's long-term performance is concerning, with a year-to-date drop of 36.81% and a one-year return of -23.41%. The company's return on capital employed (ROCE) stands at 13.2, which is attractive, but it has also faced a significant profit decline of 13.2% over the past year, contributing to its overall weak long-term fundamentals.

In the broader market context, the stock's recent short-term return of +0.63% over the past week contrasts sharply with the Sensex, which has fallen by 1.56% in the same period. This indicates that Donear Industries Ltd is performing better than the market in the short term. However, the stock has underperformed the market over the last year, with a decline significantly greater than the BSE500's -4.75%. The high debt to EBITDA ratio of 7.05 times and the low ability to service debt further complicate the stock's outlook, suggesting that while there may be short-term gains, the long-term prospects remain weak.
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