Why is Orchid Pharma falling/rising?

Aug 12 2025 09:23 PM IST
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As of 12-Aug, Orchid Pharma Ltd's stock price is 764.60, down 0.52%, with a significant decline in delivery volume and a year-to-date drop of 57.92%. The company's weak financials and poor long-term outlook classify it as a strong sell despite high institutional holdings.
As of 12-Aug, Orchid Pharma Ltd is experiencing a decline in its stock price, currently at 764.60, which reflects a decrease of 4.0 points or 0.52%. The stock has underperformed its sector by 0.9% today, and its delivery volume has significantly dropped by 48.75% compared to the 5-day average, indicating falling investor participation. Over the past week, the stock has decreased by 3.14%, while it has shown a modest increase of 6.63% over the past month. However, the long-term outlook remains concerning, with a year-to-date decline of 57.92% and a one-year drop of 48.57%. The company has reported weak financials, including a negative operating profit of 19.64% and a low return on equity (ROE) of 4.68%, which contribute to its classification as a strong sell.

In the broader market context, while the Sensex has shown a slight decline of 0.59% over the past week, Orchid Pharma's performance has been significantly worse, highlighting its struggles compared to the benchmark. The stock's long-term fundamentals are weak, with a poor EBIT to interest ratio and negative results reported for the last three consecutive quarters. Despite high institutional holdings at 20.82%, which typically indicate confidence from more knowledgeable investors, the company's financial health raises concerns. The stock's valuation appears expensive relative to its earnings growth, as evidenced by a PEG ratio of 4.4, further complicating its market position.
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