Why is Oriental Aromat. falling/rising?

Aug 28 2025 09:51 PM IST
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As of 28-Aug, Oriental Aromatics Ltd's stock price is declining at 328.30, down 1.71%, and is trading below all key moving averages. The company has reported negative results for two consecutive quarters, leading to decreased investor confidence and a year-to-date return of -19.93%, indicating significant underperformance compared to the market.
As of 28-Aug, Oriental Aromatics Ltd is experiencing a decline in its stock price, currently at 328.30, reflecting a decrease of 5.7 points or 1.71%. The stock's performance today is in line with its sector, but it is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has fallen by 1.72%, and it has seen a significant drop of 11.19% over the last month. Additionally, the company has reported negative results for the last two consecutive quarters, with a substantial decline in profits and a concerning growth rate in operating profit over the past five years. This has contributed to a lack of confidence among investors, as evidenced by the falling delivery volume, which decreased by 11.15% against the 5-day average.

In the broader market context, the stock has underperformed compared to the benchmark, with a year-to-date return of -19.93% against the Sensex's positive return of 2.48%. The consistent underperformance over the last three years, coupled with the fact that domestic mutual funds hold no stake in the company, suggests a lack of confidence in its future growth prospects. Despite a strong ability to service its debt and attractive valuations compared to peers, the negative sentiment surrounding its recent financial performance and the overall market conditions have led to a decline in the stock price.
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