Why is Margo Finance falling/rising?

Aug 29 2025 09:24 PM IST
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As of 29-Aug, Margo Finance Ltd's stock price is Rs 78.01, down 1.84%, reflecting a two-day decline of 3.03% and a weekly drop of 3.77%. Despite a strong annual return of 33.35%, the company faces concerns over weak fundamentals and high valuation compared to peers.
As of 29-Aug, Margo Finance Ltd is experiencing a decline in its stock price, currently at Rs 78.01, which reflects a decrease of 1.46 or 1.84%. The stock has underperformed its sector by 1.18% today and has been on a consecutive downward trend for the last two days, resulting in a total drop of 3.03% during this period. The stock has shown significant volatility, trading within a wide range of Rs 9.78, with an intraday high of Rs 85.8 and a low of Rs 76.02. Over the past week, Margo Finance has seen a return of -3.77%, while its performance over the last month is down by 9.45%. Despite generating a return of 33.35% over the past year, the company has shown weak long-term fundamentals, with a low return on equity (ROE) of 0.14% and a significant drop in profits by 13% over the past year, contributing to its recent price decline.

In the broader market context, Margo Finance's recent performance contrasts with the benchmark Sensex, which has decreased by 1.84% over the same one-week period, indicating that the stock's decline is more pronounced than the overall market trend. The stock's long-term performance over three years shows a substantial gain of 212.04%, yet the current weak fundamentals and high valuation compared to peers are raising concerns among investors. The rising investor participation, indicated by a 53.34% increase in delivery volume, suggests some interest in the stock despite its recent struggles, but the overall sentiment remains cautious due to the company's flat quarterly results and low profitability metrics.
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