Why is Leading Lea. Fin falling/rising?

Jul 08 2025 10:28 PM IST
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As of 08-Jul, Leading Leasing Finance & Investment Company Ltd's stock price is declining at 5.67, down 3.41%, with significant underperformance and reduced investor participation. Despite strong long-term fundamentals and impressive annual returns, recent profit declines are raising investor concerns.
As of 08-Jul, Leading Leasing Finance & Investment Company Ltd is experiencing a decline in its stock price, currently at 5.67, which reflects a decrease of 0.2 or 3.41%. The stock has been underperforming, having lost 3.9% over the last two days and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, the delivery volume has dropped significantly by 41.52% compared to the 5-day average, indicating falling investor participation. Despite strong long-term fundamentals, including a 41.72% CAGR growth in operating profits and a remarkable net profit increase of 995.35%, the stock's valuation appears expensive with a low return on equity of 1.4 and a price-to-book value of 2.3, which may be contributing to the recent price decline.

In the broader market context, the stock has underperformed relative to the benchmark, with a 1-week return of 3.66% compared to a negligible 0.02% for the Sensex. However, over the longer term, the stock has shown impressive performance, generating an 84.09% return over the past year, significantly outperforming the market's 1.98% return. Despite this strong annual performance, the recent trend of falling profits by 18.7% may be causing investor concerns, leading to the current downward price movement.
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