Why is Maruti Infra. falling/rising?

Sep 17 2025 09:30 PM IST
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As of 17-Sep, Maruti Infrastructure Ltd is priced at 13.21, down 1.86%, and has significantly underperformed its sector and the broader market, with a year-to-date decline of 29.36% and a staggering 50.95% drop over the past year. The company faces challenges including negative quarterly results, high debt levels, and rising costs, leading to investor skepticism.
As of 17-Sep, Maruti Infrastructure Ltd is currently priced at 13.21, reflecting a decrease of 0.25, or 1.86%. The stock has underperformed its sector by 2.38% today and has been on a downward trend, losing value for the last two days with a total decline of 2.29%. Over the past week, the stock has fallen by 2.15%, and its year-to-date performance shows a significant drop of 29.36%. The company has reported negative results for the last three consecutive quarters, with a weak long-term fundamental strength indicated by a low Return on Capital Employed (ROCE) of 3.19% and a high Debt to EBITDA ratio of 25.50 times. Additionally, rising raw material costs and a decrease in cash and equivalents have further pressured the stock's performance.

In the broader market context, the Sensex has shown a positive return of 1.56% over the past week, contrasting sharply with Maruti Infrastructure's decline. While the market as a whole has generated negative returns of 2.63% over the last year, Maruti's stock has significantly underperformed with a staggering drop of 50.95%. This disparity highlights the company's struggles relative to the overall market, exacerbated by its expensive valuation and low ability to service debt, which has contributed to investor skepticism and the stock's recent price decline.
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