Why is Huhtamaki India falling/rising?

Aug 21 2025 10:41 PM IST
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As of 21-Aug, Huhtamaki India Ltd's stock price is 216.95, down 1.18%, and has underperformed its sector and the broader market significantly over the past year. Despite a stable financial health indicated by a low Debt to EBITDA ratio, the company faces declining profits and reduced investor participation, leading to a lack of confidence in its growth prospects.
As of 21-Aug, Huhtamaki India Ltd's stock price is currently at 216.95, reflecting a decrease of 2.6, or 1.18%. The stock has underperformed its sector by 2.3% today and has experienced a trend reversal, falling after two consecutive days of gains. Over the past week, the stock has shown a modest increase of 2.14%, but it has declined by 3.75% over the last month and a significant 50.74% over the past year. The company's financial health is somewhat stable, indicated by a low Debt to EBITDA ratio of 1.19 times; however, its profits have fallen by 33.5% in the past year, contributing to the stock's poor performance. Additionally, the stock's delivery volume has decreased by 7.43% against the five-day average, suggesting falling investor participation.

In the broader market context, while the Sensex has gained 1.74% over the past week, Huhtamaki India has lagged behind, indicating a weaker performance relative to the market. The stock has also underperformed significantly over the last year, with a decline of 50.74% compared to the BSE500's negative return of only 1.56%. Institutional investors have reduced their stake in the company by 0.51% in the previous quarter, reflecting a lack of confidence in its long-term growth prospects, as evidenced by stagnant net sales and declining operating profits over the past five years. This combination of factors contributes to the stock's downward movement.
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