Why is Dredging Corpn. falling/rising?

Jul 03 2025 08:44 PM IST
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As of 03-Jul, Dredging Corporation of India Ltd's stock price is declining at 701.30, down 0.99%, with a significant drop of 11.28% over the past month. The company faces long-term challenges, including weak debt servicing ability and negative operating profits, contributing to its poor performance relative to the market.
As of 03-Jul, Dredging Corporation of India Ltd is experiencing a decline in its stock price, currently at 701.30, which reflects a decrease of 7.0 points or 0.99%. The stock has underperformed its sector by 0.54% today and has been on a consecutive downward trend for the last two days, resulting in a total return drop of 1.81% during this period. Additionally, the stock has shown a significant decline in performance over the past month, with a return of -11.28%, while the benchmark Sensex has increased by 3.10%. The company has also seen a decrease in investor participation, with delivery volume falling by 41.4% against the 5-day average. Despite some positive results in the latest quarter, such as the highest operating profit to interest ratio and net sales, the company faces significant long-term challenges, including a weak ability to service its debt and negative operating profits, which contribute to the stock's recent decline.

In the broader market context, the stock's performance has been notably poor compared to the benchmark, with a year-to-date return of -15.71% against the Sensex's gain of 6.53%. Over the past year, Dredging Corporation has underperformed significantly, generating a return of -44.94% while the broader market has seen a modest increase of 4.07%. This stark contrast highlights the stock's struggles relative to market conditions, further exacerbated by its weak long-term fundamental strength and negative operating profit trends, making it a risky investment in the current environment.
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