Why is India Cements falling/rising?

Sep 22 2025 09:23 PM IST
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As of 22-Sep, India Cements Ltd's stock price is Rs 390.60, down 2.07%, and has underperformed its sector and the market recently. Despite a positive monthly return, weak long-term fundamentals and declining profits raise investor concerns about its sustainability.
As of 22-Sep, India Cements Ltd is experiencing a decline in its stock price, currently at Rs 390.60, which reflects a decrease of Rs 8.25 or 2.07%. The stock has underperformed its sector by 2.39% today and has been on a downward trend for the last three days, accumulating a total loss of 4.03%. Despite a positive performance over the past month with a return of 3.84%, the stock's recent movement is concerning, especially given the weak long-term fundamentals indicated by a -216.07% CAGR growth in operating profits over the last five years and a negative EBITDA. Additionally, the company's ability to service its debt is weak, as evidenced by a poor EBIT to Interest ratio of -0.37, which may contribute to investor apprehension.

In the broader market context, while the Sensex has shown a slight increase of 0.46% over the past week, India Cements has declined by 2.04% during the same period. This indicates that the stock is not only underperforming relative to the market but also facing challenges in attracting investor participation, as evidenced by a 23.36% drop in delivery volume compared to the five-day average. Although the stock has outperformed the broader market over the past year with a return of 7.84%, the significant drop in profits by 48.1% raises concerns about its sustainability, leading to a cautious outlook among investors.
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