Why is Oriental Aromat. falling/rising?

Aug 11 2025 10:10 PM IST
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As of 11-Aug, Oriental Aromatics Ltd's stock price is Rs 332.00, down 5.41%, with a significant decline of 34.86% over the past year. The company has reported negative results for two consecutive quarters, raising investor concerns and contributing to its underperformance compared to the market.
As of 11-Aug, Oriental Aromatics Ltd is experiencing a decline in its stock price, currently at Rs 332.00, which reflects a decrease of Rs 19.0 or 5.41%. The stock has underperformed significantly today, with a performance that is 6.45% lower than its sector. It touched an intraday low of Rs 328, indicating a drop of 6.55%. Over the past week, the stock has decreased by 9.67%, and it has shown a substantial decline of 34.86% over the past year. Despite a strong EBIT to Interest ratio of 16.20 and a relatively attractive valuation with a ROCE of 6.9, the stock's profits have fallen by 8.8% over the last year, contributing to its negative performance. The company has also reported negative results for the last two consecutive quarters, which has raised concerns among investors.

In the broader market context, the stock's short-term performance has been notably worse than the benchmark, with a 1-week decline of 9.67% compared to the Sensex's slight decrease of 0.51%. This consistent underperformance against the benchmark over the last three years, coupled with a lack of domestic mutual fund investment, suggests a lack of confidence in the company's future growth prospects. The stock's liquidity remains adequate for trading, but the overall sentiment appears negative due to the company's poor long-term growth trajectory and declining operating profits.
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