Why is Hikal falling/rising?

Sep 10 2025 09:47 PM IST
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As of 10-Sep, Hikal Ltd's stock price is at 261.40, down 0.91%, with a significant year-to-date decline of 32.93%. The stock has underperformed its sector and the Sensex, indicating negative investor sentiment and poor long-term growth prospects.
As of 10-Sep, Hikal Ltd's stock price is currently at 261.40, reflecting a decrease of 2.4, or 0.91%. The stock has underperformed its sector by 1.29% today, and its delivery volume has significantly dropped by 43.76% compared to the 5-day average, indicating falling investor participation. Over the past week, the stock has declined by 2.35%, and it has shown a substantial year-to-date decline of 32.93%. Despite having an attractive valuation with a return on capital employed (ROCE) of 9.7 and trading at a discount compared to its peers, the stock's profits have decreased by 6.5% over the past year, contributing to its negative performance.

In the broader market context, Hikal's recent performance contrasts sharply with the Sensex, which has gained 1.06% over the past week and 4.21% year-to-date. The stock has consistently underperformed against the benchmark, generating a return of -29.87% in the last year while the Sensex has remained relatively flat at -0.61%. This consistent underperformance, coupled with poor long-term growth indicators such as a -2.51% annual operating profit growth over the last five years, suggests that investor sentiment is negatively impacted, leading to the stock's decline.
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