Why is Oil Country falling/rising?

Jul 15 2025 10:05 PM IST
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As of 15-Jul, Oil Country Tubular Ltd's stock price is at 89.76, down 0.6% after four consecutive days of decline. Despite a strong long-term performance, recent underperformance and high debt levels have raised concerns among investors.
As of 15-Jul, Oil Country Tubular Ltd's stock price is currently at 89.76, reflecting a decrease of 0.54, or 0.6%. The stock has been underperforming recently, having fallen for the last four consecutive days, resulting in a total decline of 3.04%. Despite this short-term downturn, the stock has shown strong performance over the longer term, with a remarkable increase of 130.15% over the past year and a staggering 1056.70% over the last three years. However, the recent performance is concerning, as it has underperformed its sector by 0.67% today, and investor participation has decreased, with delivery volume falling by 15.59% against the five-day average. While the company has reported positive results in the last four quarters, including significant growth in net sales and a high inventory turnover ratio, it faces challenges due to weak long-term fundamental strength, including a low return on capital employed and high debt levels.

In the broader market context, the stock's short-term performance of -2.87% over the past week contrasts with the Sensex, which has declined by only 1.36% in the same period. This indicates that while the overall market is experiencing a downturn, Oil Country's stock is faring worse than the benchmark. Despite its impressive long-term returns, the stock's recent struggles, coupled with its negative operating profits and high debt-to-EBITDA ratio, contribute to a perception of risk among investors, leading to the current decline in its price.
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