Why is Huhtamaki India falling/rising?

Jun 24 2025 10:02 PM IST
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As of 24-Jun, Huhtamaki India Ltd's stock price is Rs 216.30, up 2.37% today, but it has a year-to-date decline of 20.11% and a 43.52% drop over the past year, indicating significant long-term underperformance despite recent short-term gains. The company has a low Debt to EBITDA ratio, suggesting it can service its debt, but declining profits raise concerns about future growth potential.
As of 24-Jun, Huhtamaki India Ltd's stock price is currently at Rs 216.30, reflecting an increase of Rs 5.0 or 2.37%. The stock has shown a positive performance today, outperforming its sector by 2.51%, and reached an intraday high of Rs 220.5, which is a 4.35% increase. Over the past week, the stock has gained 3.52%, and in the last month, it has risen by 8.88%. However, despite these short-term gains, the stock has significantly underperformed over the longer term, with a year-to-date decline of 20.11% and a staggering 43.52% drop over the past year. The company maintains a strong ability to service its debt, indicated by a low Debt to EBITDA ratio of 1.15 times, and is trading at a discount compared to its peers, but its profits have fallen by 41.3%, contributing to its negative long-term growth outlook.

In the broader market context, while Huhtamaki India has shown some short-term resilience, the benchmark Sensex has only increased by 0.58% over the past week and 0.41% over the past month, indicating that the stock's recent rise is notable compared to the market's performance. However, the stock's long-term performance remains concerning, as it has underperformed the market significantly over the past year, where the BSE 500 has generated a return of 2.98%. This stark contrast highlights the challenges Huhtamaki India faces, particularly with its declining net sales and operating profit over the last five years, which raises questions about its future growth potential.
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