Why is Kalyan Capitals falling/rising?

Jul 15 2025 08:46 PM IST
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As of 15-Jul, Kalyan Capitals Ltd's stock price is at 10.15, reflecting a slight increase, but it has a troubling year-to-date return of -20.77% and high debt levels. Despite recent positive momentum and increased investor interest, concerns about its long-term sustainability remain due to negative financial results.
As of 15-Jul, Kalyan Capitals Ltd is experiencing a slight increase in its stock price, currently at 10.15, with a change of 0.02 (0.2%) upward. The stock has shown positive momentum recently, gaining 8.09% over the last two days and outperforming the benchmark Sensex, which has declined by 1.36% over the past week. Despite this recent uptick, the stock has a troubling history, with a year-to-date return of -20.77% and a significant decline of -37.27% over the past year. The company has a very attractive valuation with a return on capital employed (ROCE) of 15.4, but it is trading at a discount compared to its peers. However, the stock's fundamentals are concerning, as it has a high debt level and weak long-term strength, with a poor EBIT to interest ratio and a return on equity of only 9.03%.

In the broader market context, Kalyan Capitals' recent performance contrasts sharply with the benchmark, as it has gained 6.17% over the past week while the Sensex has fallen. This divergence highlights the stock's short-term resilience despite its long-term underperformance, where it has consistently lagged behind the BSE500 over the last three years. The rising investor participation, indicated by a 55.55% increase in delivery volume, suggests growing interest in the stock, which may be contributing to its recent price rise. However, the company's negative financial results, including a significant drop in net sales and profits, raise concerns about its sustainability in the long run.
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