Why is Oriental Rail falling/rising?

Jul 11 2025 08:50 PM IST
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As of 11-Jul, Oriental Rail Infrastructure Ltd's stock price is Rs 177.10, down 1.53%, with a year-to-date decline of 45.02%. The company faces challenges including high debt levels, decreasing profits, and lack of mutual fund investment, contributing to its significant underperformance compared to the market.
As of 11-Jul, Oriental Rail Infrastructure Ltd is experiencing a decline in its stock price, currently at Rs 177.10, which reflects a decrease of Rs 2.75 or 1.53%. The stock has been losing ground for the last two days, with a total drop of 2.15% during this period. It reached an intraday low of Rs 172.65, indicating a significant decline of 4%. The stock's performance over the past week shows a decrease of 4.43%, while it has gained 6.69% over the past month. However, its year-to-date performance is concerning, with a drop of 45.02%. The company's return on capital employed (ROCE) stands at 11.7, suggesting fair valuation, but it has a high Debt to EBITDA ratio of 5.02, indicating low ability to service debt. Additionally, the stock's profits have decreased by 2.7% over the past year, contributing to its negative performance.

In the broader market context, the Sensex has fallen by only 1.12% over the past week, indicating that Oriental Rail's decline is more pronounced than the overall market trend. The stock's performance has been below par compared to the benchmark, with a significant underperformance over the past year, where it generated returns of -53.22% compared to the Sensex's 3.26%. Furthermore, domestic mutual funds hold no stake in the company, which may reflect a lack of confidence in its future prospects. Overall, the combination of declining investor participation, poor long-term growth, and high debt levels contributes to the stock's recent downward movement.
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