Why is Linde India falling/rising?

Sep 02 2025 09:51 PM IST
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As of 02-Sep, Linde India Ltd. is seeing a price increase to 6,405.00, but has underperformed in the short term with a 1-month return of -2.65% and a yearly decline of -10.83%. Despite today's gain, concerns about long-term growth and reduced investor participation may affect future performance.
As of 02-Sep, Linde India Ltd. is experiencing a price increase, with its current price at 6,405.00, reflecting a change of 62.6 (0.99%) upwards. The stock has shown a trend reversal, gaining after two consecutive days of decline. Despite this positive movement today, the stock has underperformed in the short term, with a 1-month return of -2.65%. Additionally, the stock's performance over the past year has been negative at -10.83%, although it has outperformed the sector by 0.84% today. The company has a low debt-to-equity ratio, which is a positive factor, but it also faces challenges such as poor long-term growth, flat quarterly results, and a high valuation compared to its peers.

Broader market context indicates that while Linde India has gained today, the benchmark Sensex has declined by 0.78% over the past week, suggesting that the stock's recent rise is somewhat isolated from broader market trends. The stock's liquidity remains adequate for trading, but there has been a notable drop in investor participation, with delivery volume falling by 14.2% against the 5-day average. This decline in participation, combined with the company's flat net sales and low return on capital employed, raises concerns about its long-term growth potential, which may influence investor sentiment moving forward.
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