Why is Him Teknoforg. falling/rising?

Sep 12 2025 09:56 PM IST
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As of 12-Sep, Him Teknoforge Ltd's stock price is at 201.20, having increased by 1.08% recently, but it has a year-to-date decline of 10.97%. Despite short-term gains, long-term performance is concerning due to high debt levels and pledged shares, leading to a cautious outlook.
As of 12-Sep, Him Teknoforge Ltd's stock price is currently at 201.20, reflecting an increase of 2.15 (1.08%). The stock has been gaining for the last two days, with a total return of 2.16% during this period, and it has outperformed its sector by 0.34%. However, despite this recent uptick, the stock has underperformed over the longer term, with a year-to-date decline of 10.97% and a one-year drop of 19.29%. The company's return on capital employed (ROCE) is at 7.2, indicating a very attractive valuation, yet it faces challenges such as a high debt-to-EBITDA ratio of 4.10 times and a significant portion of promoter shares (52.8%) being pledged, which can exert downward pressure on the stock price.

In the broader market context, the stock's short-term performance of +0.70% over the past week is notably lower than the Sensex's gain of +1.48% during the same period. While the stock has shown some positive movement recently, its long-term performance remains concerning, particularly when compared to the market's overall return of -1.28% over the past year. The company's ability to service its debt is also a factor that could hinder investor confidence, especially in a falling market. Thus, while there are some positive indicators in the short term, the overall outlook remains cautious due to the company's fundamental weaknesses and market performance.
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