Why is Himalaya Food falling/rising?

Jul 02 2025 09:24 PM IST
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As of 02-Jul, Himalaya Food International Ltd's stock price is at 14.40, down 3.87%, and has underperformed its sector and the benchmark Sensex significantly. Despite expected positive financial results, the company's weak long-term fundamentals and declining profitability metrics contribute to a bearish outlook.
As of 02-Jul, Himalaya Food International Ltd's stock price is currently at 14.40, reflecting a decrease of 0.58, or 3.87%. The stock has underperformed its sector by 4.15% today, following a trend reversal after two consecutive days of gains. It is trading below all key moving averages, indicating a bearish trend. Over the past week, the stock has declined by 1.57%, and it has significantly underperformed the benchmark Sensex, which has gained 0.79%. The stock has also shown a substantial decline over longer periods, with a year-to-date drop of 23.69% and a one-year return of -41.37%. Despite some positive financial results expected in September, including the highest quarterly operating profit margin, the company's weak long-term fundamentals, such as a -11.75% CAGR growth in operating profits and a poor EBIT to interest ratio, contribute to its declining stock price.

In the broader market context, while the Sensex has shown a positive return of 2.50% over the past month and 6.75% year-to-date, Himalaya Food's performance has been starkly negative, with a one-year return significantly lagging behind the market average. This underperformance is compounded by the company's weak profitability metrics, including a low return on equity of 1.89%, which signals challenges in generating shareholder value. The stock's liquidity appears adequate, with a notable increase in delivery volume, but the overall sentiment remains bearish due to the company's inability to service its debt effectively and the substantial decline in profits over the past year.
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