Why is Lakshmi Mills falling/rising?

Jul 07 2025 08:56 PM IST
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As of 07-Jul, Lakshmi Mills Company Ltd's stock price is Rs 9,380.00, having increased by 0.27%. Despite strong short-term performance and significant annual returns, concerns about long-term fundamentals and limited mutual fund interest suggest caution for investors.
As of 07-Jul, Lakshmi Mills Company Ltd's stock price is currently at Rs 9,380.00, reflecting an increase of Rs 25.0 or 0.27%. The stock has shown a positive trend today, gaining after two consecutive days of decline, and it outperformed its sector by 0.93%. Over the past week, the stock has risen by 1.39%, and it has delivered impressive returns of 58.01% over the past year, significantly outpacing the BSE500 index. However, despite this strong performance, there are concerns regarding the company's long-term fundamentals, as indicated by a relatively low Return on Capital Employed (ROCE) of 0.2 and weak growth in net sales over the past five years.

Broader market context shows that while Lakshmi Mills has performed well in the short term, the benchmark Sensex has slightly declined by 0.20% over the same week. The stock's strong performance in the long term, with a 171.49% increase over three years, contrasts with the broader market's more modest gains. The company's ability to attract domestic mutual funds appears limited, with only 0.01% of the company held by them, which may indicate a lack of confidence in its valuation or business prospects. Overall, while the stock is currently rising, the mixed signals regarding its long-term growth and investor participation suggest caution.
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