Why is GMR Urban falling/rising?

Oct 23 2025 11:49 PM IST
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As of 23-Oct, GMR Power & Urban Infra Ltd's stock price is rising to 123.40, reflecting a 2.92% increase and a total return of 12.18% over the last five days. The stock shows strong momentum, trading above key moving averages, but faces challenges like high debt levels and poor long-term growth metrics.
As of 23-Oct, GMR Power & Urban Infra Ltd's stock price is rising, currently at 123.40, reflecting an increase of 3.5 or 2.92%. The stock has been on an upward trend, gaining for the last five days with a total return of 12.18% during this period. It has outperformed its sector by 3.34% today and is trading above all key moving averages, indicating strong momentum. Additionally, the stock has shown impressive long-term performance, with a remarkable 389.68% increase over the last three years, although it has lagged behind the benchmark Sensex in the year-to-date and one-year comparisons. Positive factors contributing to this rise include an attractive valuation with a return on capital employed of 10.8 and a significant profit increase of 52.5% over the past year, despite concerns regarding high debt levels and pledged promoter shares.

Broader market context shows that GMR Urban's short-term performance has significantly outpaced the Sensex, which only gained 1.30% over the past week. The stock's strong liquidity, evidenced by a 16.35% increase in delivery volume, further supports its rising price. However, the company faces challenges such as a high debt-equity ratio and poor long-term growth metrics, which could pose risks if market conditions change. Despite these concerns, the current positive momentum and investor interest appear to be driving the stock's price upward in the short term.
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