Why is Igarashi Motors falling/rising?

Jul 04 2025 09:24 PM IST
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As of 04-Jul, Igarashi Motors India Ltd is seeing a price increase to 541.85, up 1.81%, with strong short-term performance but declining investor participation and concerns over long-term growth metrics. Despite outperforming the sector today, challenges such as low ROCE and a significant drop in quarterly PAT raise sustainability concerns.
As of 04-Jul, Igarashi Motors India Ltd is experiencing a price increase, currently at 541.85, reflecting a rise of 9.65 or 1.81%. The stock has shown strong performance in the short term, with a 1-week return of 11.99%, significantly outperforming the Sensex, which has declined by 0.74%. However, there are concerns regarding falling investor participation, as the delivery volume has decreased by 58.16% compared to the 5-day average. Despite this, the stock has outperformed the sector by 1.14% today and has demonstrated solid long-term performance, generating a 9.79% return over the past year and outperforming the BSE500 over the last three years.

In the broader market context, while Igarashi Motors has shown a positive short-term return, the benchmark Sensex has gained 3.01% over the past month, indicating that the stock's recent rise is not entirely reflective of the overall market trend. Despite the stock's recent gains, it faces challenges such as poor long-term growth metrics, with net sales and operating profit growth lagging behind expectations. Additionally, the company's return on capital employed (ROCE) is relatively low at 7.1, and while the stock is trading at a discount compared to its peers, the significant drop in quarterly profit after tax (PAT) raises concerns about its sustainability.
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