Why is India Cements falling/rising?

Aug 26 2025 09:21 PM IST
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As of 26-Aug, India Cements Ltd is currently priced at Rs 382.70, reflecting a recent upward trend despite long-term fundamental weaknesses, including a significant decline in operating profits and negative EBITDA. While it has outperformed the Sensex in the short term, concerns about sustainability and investor participation remain.
As of 26-Aug, India Cements Ltd is experiencing a price increase, currently at Rs 382.70, reflecting a change of 1.45 (0.38%) upward. The stock has shown strong performance recently, outperforming its sector by 0.83% today and gaining 1.74% over the last two days. It is also trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Despite this positive movement, the stock has a concerning long-term fundamental weakness, highlighted by a -216.07% CAGR growth in operating profits over the last five years and a negative EBITDA, which raises questions about its sustainability. The company has also reported a significant drop in delivery volume, indicating a potential decline in investor participation.

In the broader market context, India Cements has outperformed the benchmark Sensex in both the short term and over the past month, with a 1-week return of +2.46% compared to the Sensex's -1.05%. However, while the stock has shown resilience in the near term, the overall market sentiment appears to be less favorable, as evidenced by the Sensex's decline over the same periods. The company's weak ability to service its debt and low profitability per unit of shareholders' funds may contribute to a cautious outlook among investors, despite its recent price gains.
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