Why is Natural Capsules falling/rising?

Jun 27 2025 08:56 PM IST
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As of 27-Jun, Natural Capsules Ltd's stock price is 224.90, up 3.52%, but it has a significant year-over-year decline of -26.91%. Despite recent short-term gains, the long-term outlook is uncertain due to declining profitability and historical underperformance against benchmarks.
As of 27-Jun, Natural Capsules Ltd's stock price is currently at 224.90, reflecting an increase of 7.65 or 3.52%. Today's price performance indicates that the stock has outperformed its sector by 2.64% and has experienced a trend reversal after three consecutive days of decline. The stock reached an intraday high of Rs 230, marking a 5.87% increase. However, despite this positive movement, the stock has shown a significant decline over the past year, with a return of -26.91%. The company has a low Debt to Equity ratio of 0.41, and while it has demonstrated healthy long-term growth with an annual operating profit increase of 48.07%, its profits have fallen drastically by 88.9% over the past year. Additionally, the company’s low ROCE of 9.29% indicates poor management efficiency, which may contribute to investor concerns.

In the broader market context, Natural Capsules has outperformed the benchmark Sensex in the short term, with a 1-week return of +4.85% compared to the Sensex's +2.00%. However, the stock has consistently underperformed against the benchmark over the last three years, highlighting a troubling trend for investors. Despite the recent uptick in price, the overall performance year-to-date remains negative at -17.16%, contrasting sharply with the Sensex's positive return of +7.58%. This mixed performance suggests that while there may be short-term gains, the long-term outlook for Natural Capsules remains uncertain, particularly given its historical underperformance and declining profitability.
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