Why is Latteys Industri falling/rising?

Sep 15 2025 11:02 PM IST
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As of 15-Sep, Latteys Industries Ltd's stock price is declining at 20.89, down 1.6%, and underperforming its sector. Despite a 29.80% increase in net sales over six months, the company faces high debt levels and low profitability, contributing to a year-to-date decline of 34.94%.
As of 15-Sep, Latteys Industries Ltd is experiencing a decline in its stock price, currently at 20.89, reflecting a decrease of 0.34 or 1.6%. The stock has underperformed its sector today by 2.36%, and while it is higher than its 5-day and 20-day moving averages, it remains below the 50-day, 100-day, and 200-day moving averages. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 68.42% compared to the 5-day average. Over the past week, the stock has decreased by 4.26%, contrasting with a 1.20% increase in the Sensex. Despite a positive growth in net sales of 29.80% over the last six months, the company faces challenges such as a high Debt to EBITDA ratio of 2.69 times, indicating a low ability to service debt, and a low average Return on Equity of 8.88%, suggesting limited profitability.

In the broader market context, the stock's year-to-date performance shows a significant decline of 34.94%, while the Sensex has increased by 6.02%. This stark contrast highlights the stock's struggles relative to the market. Although the company has shown strong long-term growth with a 243.59% return over three years, the recent annual return of -6.74% alongside a 13% increase in profits indicates a concerning valuation, as reflected by a PEG ratio of 4.5. Overall, the combination of poor short-term performance, high debt levels, and low profitability metrics contributes to the stock's current downward trend.
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