Why is Prakash Woollen falling/rising?

Jul 23 2025 09:00 PM IST
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As of 23-Jul, Prakash Woollen & Synthetic Mills Ltd is seeing a short-term price increase to 28.29, but faces significant long-term challenges, including operating losses and a high Debt to EBITDA ratio of 8.89. Despite recent gains, the stock has underperformed over the past year with a -23.54% return and low profitability, indicating a concerning overall outlook.
As of 23-Jul, Prakash Woollen & Synthetic Mills Ltd is experiencing a price increase, currently at 28.29, reflecting a change of 0.51 (1.84%) upward. The stock has outperformed its sector today by 0.65% and has shown a consecutive gain over the last two days, with a total return of 4.78% during this period. However, despite this short-term positive movement, the company has significant challenges, including operating losses and a high Debt to EBITDA ratio of 8.89 times, indicating a weak long-term fundamental strength. The stock has generated a return of -23.54% over the past year, and its profitability per unit of shareholders' funds is low, with an average Return on Equity of only 2.33%.

In the broader market context, the stock's recent performance of +1.84% over the past week contrasts with the Sensex, which has only increased by 0.11% during the same period. However, the stock has underperformed the benchmark over longer time frames, including a -3.12% return over the past month and a -25.16% year-to-date decline compared to the Sensex's +5.87% YTD return. This underperformance, combined with falling investor participation and liquidity issues, suggests that while there may be short-term gains, the overall outlook for Prakash Woollen remains concerning, particularly due to its negative operating profits and declining sales figures.
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