Why is Lambodhara Text. falling/rising?

Sep 05 2025 09:16 PM IST
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As of 05-Sep, Lambodhara Textiles Ltd's stock price is 125.55, down 0.75%, and has underperformed its sector. Despite a 47.5% profit increase over the past year, the stock has a negative return of -33.66% and faces challenges due to high promoter pledging and weak growth indicators.
As of 05-Sep, Lambodhara Textiles Ltd is experiencing a decline in its stock price, currently at 125.55, reflecting a decrease of 0.95 or 0.75%. The stock has underperformed its sector by 0.31% today and has been on a downward trend for the last three days, accumulating a total loss of 2.86% during this period. Over the past year, the stock has generated a return of -33.66%, significantly lagging behind the BSE500 index, which has seen a decline of only 1.81%. Despite a rise in profits by 47.5% over the same period, the stock's long-term growth prospects appear poor, with net sales and operating profit growth rates of only 11.91% and 5.05%, respectively. Additionally, 39.28% of promoter shares are pledged, which can exert further downward pressure on the stock price in a declining market.

In the broader market context, the stock's short-term performance has been notably weaker than the benchmark, as it has recorded a slight decline of 0.12% over the past week, while the Sensex has increased by 1.13%. This underperformance is compounded by the stock's negative returns over the past year and three years, indicating a lack of investor confidence. Although there has been a rise in investor participation, with a 41.64% increase in delivery volume, the overall sentiment remains cautious due to the stock's historical underperformance and the high percentage of pledged shares. The current valuation metrics suggest that the stock is trading at a discount compared to its peers, but the combination of poor growth indicators and high promoter pledging continues to weigh heavily on its price movement.
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