Why is Indian Sucrose falling/rising?

Sep 12 2025 09:34 PM IST
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As of 12-Sep, Indian Sucrose Ltd is priced at 94.00, with a year-to-date decline of 21.50% and significant underperformance compared to the market. Despite a recent increase in delivery volume, the company's high debt levels and poor sales performance raise concerns about its investment viability.
As of 12-Sep, Indian Sucrose Ltd is currently priced at 94.00, reflecting a slight increase of 0.4 (0.43%). The stock's performance today is in line with the sector, although it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has decreased by 1.57%, and it has shown a significant decline of 21.50% year-to-date. Despite the recent uptick in delivery volume, which rose by 57.65% against the 5-day average, the stock's overall performance has been poor, with a return of -18.83% over the last year. The company's attractive valuation, indicated by a ROCE of 19.3 and a PEG ratio of 0.4, contrasts sharply with its high Debt to EBITDA ratio of 2.59, which raises concerns about its ability to service debt. Additionally, net sales have fallen by 32.79%, and the company has underperformed in both short-term and long-term metrics.

In the broader market context, the Sensex has gained 1.48% over the past week, while Indian Sucrose has experienced a decline, indicating a significant underperformance relative to the benchmark. The stock's negative returns over various periods, including a -2.34% drop in the last month and a -18.83% return in the past year, further highlight its struggles compared to the overall market, which has shown positive growth. The combination of poor sales performance, high debt levels, and underwhelming growth prospects has contributed to the stock's inability to keep pace with market trends, reinforcing the perception of it being a less favorable investment at this time.
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