Why is Norben Tea falling/rising?

Nov 03 2025 09:59 PM IST
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As of 03-Nov, Norben Tea & Exports Ltd's stock price is declining at 62.58, down 1.99%, and has lost 5.85% over the last three days. Despite a strong annual return of 278.58%, concerns about its long-term fundamentals and high valuation metrics are affecting investor sentiment.
As of 03-Nov, Norben Tea & Exports Ltd is experiencing a decline in its stock price, currently at 62.58, which reflects a decrease of 1.27 or 1.99%. The stock has underperformed its sector by 4.57% today and has been on a downward trend for the last three days, accumulating a total loss of 5.85% during this period. Despite its strong performance over the past year, with a return of 278.58%, the company faces challenges such as weak long-term fundamental strength indicated by a low Return on Capital Employed (ROCE) of 3.83% and a high Debt to EBITDA ratio of 5.30 times. These factors contribute to a perception of the stock being overvalued, especially given its premium compared to peers and a high PEG ratio of 10.6.

In the broader market context, while Norben Tea has shown impressive returns of 18.25% over the past month and 3.78% over the last week, the benchmark Sensex has only gained 3.41% and lost 0.94% respectively during the same periods. This indicates that although the stock has outperformed the market recently, its current decline suggests a correction phase amidst high volatility, with intraday fluctuations reaching 520.83%. The tea/coffee sector has seen a gain of 2.55%, yet Norben Tea's recent performance may reflect investor concerns regarding its long-term growth potential and financial stability, leading to a cautious approach from the market.
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