Why is Prism Johnson falling/rising?

Aug 12 2025 10:36 PM IST
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As of 12-Aug, Prism Johnson Ltd. is facing a decline in stock price, currently at 141.50, reflecting a 0.91% decrease and significant underperformance against benchmarks. The company has shown weak long-term fundamentals, raising concerns about its ability to generate returns and service debt.
As of 12-Aug, Prism Johnson Ltd. is experiencing a decline in its stock price, currently at 141.50, which reflects a decrease of 1.3 or 0.91%. The stock has been underperforming, having lost 5.73% over the last three days and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Additionally, the delivery volume has dropped significantly, falling by 40.23% compared to the 5-day average, indicating a decrease in investor participation. While there were positive results reported on June 25, including a 139.5% growth in PAT and a low debt-equity ratio, the company has shown weak long-term fundamental strength with a -186.35% CAGR growth in operating profits over the last five years, which raises concerns about its ability to service debt and generate adequate returns on equity.

In the broader market context, Prism Johnson's recent performance has been notably weaker than the benchmark, with a 1-week return of -5.82% compared to the Sensex's -0.59%. The stock has consistently underperformed against the benchmark over the last three years, with a return of -12.76% in the past year while the Sensex has gained 0.74%. This consistent underperformance, coupled with negative operating profits and a poor EBIT to interest ratio, contributes to the perception of the stock as risky, further influencing its downward price movement.
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