Why is Equitas Sma. Fin falling/rising?

Jul 25 2025 10:45 PM IST
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As of 25-Jul, Equitas Small Finance Bank Ltd's stock price is declining at 61.34, down 1.21%, and has underperformed with a -3.1% return over the last five days. Despite strong lending practices, the stock's significant profit decline and negative annual return of -30.83% contribute to investor caution.
As of 25-Jul, Equitas Small Finance Bank Ltd is experiencing a decline in its stock price, currently at 61.34, which reflects a decrease of 0.75 or 1.21%. The stock has been underperforming, having fallen consecutively for the last five days, resulting in a total return of -3.1% over that period. Additionally, it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite a rise in delivery volume by 7.59% against the 5-day average, the stock has generated a substantial negative return of -30.83% over the past year, with profits plummeting by 81.6%. While the bank maintains strong lending practices and a low Gross NPA ratio of 2.89%, the significant decline in profits and the stock trading at a premium compared to peers may be contributing to investor caution.

In the broader market context, Equitas Small Finance Bank's recent performance has been notably weaker than the benchmark Sensex, which has only declined by 0.36% over the past week. The stock's year-to-date performance is also concerning, with a decline of 4.40% compared to the Sensex's gain of 4.25%. While high institutional holdings at 63.43% suggest confidence among larger investors, the overall negative sentiment surrounding the stock, driven by its poor returns and falling profits, indicates a challenging environment for the company relative to the broader market.
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