Why is Orient Green falling/rising?

Jul 08 2025 10:01 PM IST
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As of 08-Jul, Orient Green Power Company Ltd's stock price is at 14.90, down 0.67%, and has underperformed its sector. Despite recent increases in investor participation, the long-term outlook is weak due to low profitability, high debt levels, and significant underperformance compared to market benchmarks.
As of 08-Jul, Orient Green Power Company Ltd is experiencing a decline in its stock price, currently at 14.90, reflecting a decrease of 0.1 or 0.67%. The stock has underperformed its sector today by 1.43%, despite showing higher performance than its 5-day, 20-day, 50-day, and 100-day moving averages, although it remains below the 200-day moving average. Notably, there has been a significant increase in investor participation, with a delivery volume of 54.86 lacs on July 7, which is up by 73.48% compared to the 5-day average. Over the past week, the stock has decreased by 1.26%, while it has shown a positive return of 12.20% over the last month. However, the long-term outlook appears weak, with a -7.26% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 5.14 times, indicating challenges in servicing debt and low profitability.

In the broader market context, the stock has significantly underperformed compared to the benchmark, with a return of -28.17% over the past year against the BSE500's positive return of 1.98%. This underperformance is compounded by the fact that domestic mutual funds hold no stake in the company, suggesting a lack of confidence in its valuation and business prospects. The company's return on equity is low at 2.87%, and its valuation appears expensive with a ROCE of 5.9 and a 1.5 Enterprise value to Capital Employed ratio. These factors contribute to the stock's current downward movement, reflecting investor concerns about its long-term viability and profitability.
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