Why is Oriental Rail falling/rising?

Jul 18 2025 08:50 PM IST
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As of 18-Jul, Oriental Rail Infrastructure Ltd's stock price is 175.45, up 0.83%, with increased investor participation. Despite a recent monthly gain, the stock has a year-to-date decline of -45.53% and faces long-term financial challenges, including high debt levels and declining profits.
As of 18-Jul, Oriental Rail Infrastructure Ltd is experiencing a price increase, with its current price at 175.45, reflecting a change of 1.45 (0.83%) upward. The stock has outperformed its sector today by 2.67%, and its delivery volume has risen by 18.22% compared to the 5-day average, indicating increased investor participation. However, despite a recent monthly return of +11.19%, the stock has significantly underperformed over the longer term, with a year-to-date decline of -45.53% and a one-year return of -59.83%. The company's fair valuation, indicated by a return on capital employed (ROCE) of 11.7 and a trading discount compared to peers, contrasts with its declining profits, which have fallen by -2.7% over the past year.

In the broader market context, the stock's recent performance shows a slight improvement compared to the benchmark Sensex, which has declined by -0.90% over the past week. However, the long-term outlook remains concerning, as the stock has underperformed the BSE500 over the last three years, one year, and three months. The company's high Debt to EBITDA ratio of 5.02 times raises concerns about its ability to service debt, and the lack of domestic mutual fund investment suggests a lack of confidence in the company's prospects. Overall, while there are some positive short-term indicators, the long-term performance and financial health of Oriental Rail Infrastructure Ltd remain troubling.
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