Why is Oriental Aromat. falling/rising?

Jul 23 2025 09:45 PM IST
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As of 23-Jul, Oriental Aromatics Ltd's stock price is Rs 407.30, down 1.14%, with a total loss of 2.56% over the last two days. Despite a short-term gain of 9.33% this week, the stock has underperformed long-term, raising concerns about its viability due to high debt and low investor interest.
As of 23-Jul, Oriental Aromatics Ltd is experiencing a decline in its stock price, currently at Rs 407.30, reflecting a decrease of Rs 4.7 or 1.14%. The stock has underperformed its sector today by 0.83% and has been on a downward trend for the last two days, accumulating a total loss of 2.56%. Despite trading above its moving averages, the stock has seen a significant drop in investor participation, with delivery volume falling by 58.34% compared to the five-day average. Over the past year, the stock has generated a return of -7.13%, while its profits have increased by 277.1%, indicating a disparity between stock performance and underlying profitability. However, the company has faced challenges, including a poor long-term growth rate in operating profit and negative results reported after four consecutive quarters of losses.

In the broader market context, the stock's short-term performance has been relatively strong compared to the benchmark, with a 9.33% increase over the past week versus a mere 0.11% rise in the Sensex. However, this short-term gain is overshadowed by the stock's long-term underperformance, particularly over the last three years, where it has consistently lagged behind the benchmark. The company's high debt-equity ratio and low domestic mutual fund interest further contribute to concerns about its long-term viability, suggesting that while there may be short-term trading opportunities, the overall outlook remains cautious.
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