Why is Future Market falling/rising?

Sep 02 2025 10:06 PM IST
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As of 02-Sep, Future Market Networks Ltd's stock price is declining at 12.93, down 3.36%, and has underperformed its sector. The stock is burdened by high debt and poor long-term growth, with a year-to-date decline of 49.61%, contrasting sharply with the overall market's performance.
As of 02-Sep, Future Market Networks Ltd is experiencing a decline in its stock price, currently at 12.93, reflecting a decrease of 0.45 or 3.36%. Today's price summary indicates that the stock has underperformed its sector by 3.5% and has reversed its trend after two consecutive days of gains. Additionally, the stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has decreased by 1.97%, and it has seen a significant drop of 49.61% year-to-date, despite a positive return of 10.51% over the past year. The company has a very attractive valuation with a ROCE of 9.5 and a PEG ratio of 0.1, but it is burdened by high debt, with a debt-to-equity ratio of 3.76 times, and poor long-term growth, as net sales have declined by an annual rate of 0.88% over the last five years. Furthermore, negative financial results reported in June, including a significant drop in profit before tax and profit after tax, contribute to the stock's downward pressure.

In the broader market context, the stock's performance has been notably worse than the benchmark, with a year-to-date decline of 49.61% compared to a 2.58% increase in the Sensex. This stark contrast highlights the stock's struggles relative to the overall market. Additionally, the high percentage of pledged promoter shares, which stands at 90.55%, exacerbates the downward pressure on the stock, particularly in a falling market. While there has been a rise in investor participation, as indicated by a 20.39% increase in delivery volume, the overall sentiment remains negative due to the company's weak long-term fundamentals and recent poor financial performance.
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