Why is Mcleod Russel falling/rising?

Jun 26 2025 10:08 PM IST
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As of 26-Jun, Mcleod Russel India Ltd is priced at 34.06, down 0.55%, and has underperformed its sector today. Despite a strong annual return of 25.96%, high debt levels and recent losses raise concerns about its long-term stability and investor sentiment.
As of 26-Jun, Mcleod Russel India Ltd is currently priced at 34.06, experiencing a decline of 0.19, or 0.55%. The stock has underperformed its sector by 1.93% today and has been on a downward trend for the last two days, resulting in a total loss of 1.02% during this period. Despite a strong performance over the past year with a return of 25.96%, significantly higher than the market's 4.11%, the company faces challenges due to high debt levels, as indicated by a Debt-Equity Ratio of 33.42 times and a high Debt to EBITDA ratio of 28.74 times. These factors contribute to a weak long-term fundamental strength, which, combined with reported losses and negative return on equity, negatively impacts investor sentiment.

In the broader market context, Mcleod Russel's short-term performance has been positive, with a 5.12% increase over the past week, compared to a 2.94% rise in the Sensex. However, the stock's year-to-date performance shows a significant decline of 22.66%, contrasting sharply with the Sensex's gain of 7.19%. The rising investor participation, as evidenced by a 119.52% increase in delivery volume, suggests some interest in the stock despite its recent price drop. Overall, while the stock has shown strong historical returns, the current financial instability and negative operating profits present considerable risks that may be influencing its recent price movement.
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