Why is Orient Beverages falling/rising?

Jul 17 2025 10:17 PM IST
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As of 17-Jul, Orient Beverages Ltd's stock price is Rs 222.00, down 2.52%, and trading near its 52-week low. The stock has significantly underperformed over the past year with a -40.80% return, raising concerns about the company's financial health and leading to a perception of it as a strong sell.
As of 17-Jul, Orient Beverages Ltd's stock price is currently at Rs 222.00, reflecting a decrease of Rs 5.75 or 2.52%. The stock has underperformed its sector today by 2.62%, and it is trading close to its 52-week low, just 4.95% above Rs 211. The stock has shown a negative trend, having fallen after two consecutive days of gains, and it touched an intraday low of Rs 219.4. Over the past year, the stock has generated a return of -40.80%, significantly underperforming the benchmark Sensex, which has gained 1.91% during the same period. The company's financial health is concerning, with operating losses and a low return on capital employed, indicating weak long-term fundamental strength.

In the broader market context, while the Sensex has shown a slight decline of 1.12% over the past week, Orient Beverages has fared slightly better with a decrease of only 0.60%. However, the stock's year-to-date performance is troubling, with a decline of 31.27% compared to the Sensex's gain of 5.27%. The company's high debt levels and poor profitability metrics, including a return on capital employed of just 2.2%, further exacerbate its challenges, leading to a perception of the stock as a strong sell. Despite some rising investor participation, the overall outlook remains negative, contributing to the ongoing decline in the stock price.
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