Why is Globus Spirits falling/rising?

Aug 28 2025 09:52 PM IST
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As of 28-Aug, Globus Spirits Ltd is priced at 1,203.15, down 3.16% today and has underperformed its sector. Despite a strong year-to-date return of 38.16%, recent quarterly losses and declining profits may be affecting investor sentiment.
As of 28-Aug, Globus Spirits Ltd is currently priced at 1,203.15, reflecting a decrease of 39.25 points or 3.16%. The stock has underperformed its sector today by 1.48%, having touched an intraday low of Rs 1196, which is a decline of 3.73%. Over the past week, the stock has seen a slight decrease of 0.73%, and in the last month, it has fallen by 3.75%. Despite a strong year-to-date performance of 38.16% and a one-year return of 34.46%, the stock's profits have significantly declined by 63.6%. While the company has demonstrated high management efficiency with a return on capital employed (ROCE) of 15.81% and a low debt-to-equity ratio of 0.33, the recent negative quarterly results after five consecutive quarters of losses may be influencing investor sentiment negatively.

In the broader market context, the stock's short-term performance has been relatively better compared to the benchmark, with the Sensex declining by 2.34% over the past week and 1.00% over the past month. However, the overall market has struggled, as indicated by the BSE500's negative returns of 5.01% in the last year, while Globus Spirits has managed to outperform with a return of 34.46%. This contrast highlights the stock's resilience despite recent challenges, but the ongoing concerns regarding poor long-term growth, as evidenced by a -6.04% annual rate of operating profit growth over the last five years, may be contributing to the current downward price movement.
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