Why is India Cements falling/rising?

Sep 18 2025 09:20 PM IST
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As of 18-Sep, India Cements Ltd is priced at Rs 399.00, down 1.97%, and has recently underperformed its sector. Despite strong long-term returns, concerns about weak fundamentals and financial health are contributing to its current price decline.
As of 18-Sep, India Cements Ltd is currently priced at Rs 399.00, reflecting a decrease of Rs 8.0 or 1.97%. The stock has recently underperformed its sector by 1.88% and has experienced a trend reversal, falling after three consecutive days of gains. Despite being only 3.41% away from its 52-week high of Rs 412.6, the stock touched an intraday low of Rs 398.45, indicating some volatility. Over the past week, the stock has shown a return of 1.27%, which is lower than the Sensex's return of 1.80%. However, it has performed well over longer periods, with a 5.99% return year-to-date and a substantial 225.45% return over the past five years. The stock is trading above all its moving averages, and there has been a notable increase in investor participation, with delivery volume rising by 28.19% against the five-day average.

In the broader market context, while India Cements has shown positive returns over various periods, its recent price decline can be attributed to weak long-term fundamental strength, including a significant negative CAGR growth in operating profits and a poor EBIT to interest ratio. The company's ability to service its debt appears weak, and it has generated a low return on equity, indicating low profitability. Additionally, the company reported flat results in June, with operating cash flow at its lowest and negative EBITDA, which raises concerns about its financial health. These factors contribute to the stock's current downward movement despite its historical performance.
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