Why is Rajas. Tube Mfg falling/rising?

Jun 25 2025 08:58 PM IST
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As of 25-Jun, Rajasthan Tube Manufacturing Co Ltd's stock is at Rs. 53.30, having risen 1.99% and recently hitting a 52-week high. Despite strong short-term gains and a remarkable 1874.07% return over the past year, concerns arise from declining operating profits and high debt levels, which may affect future investor sentiment.
As of 25-Jun, Rajasthan Tube Manufacturing Co Ltd's stock price is rising, currently at Rs. 53.30, reflecting an increase of 1.04 (1.99%). The stock has recently hit a new 52-week high and has been gaining for the last two days, with a total return of 4.02% during this period. Over the past week, the stock has outperformed the Sensex, with a return of 6.03% compared to the benchmark's 1.61%. Despite a significant long-term performance, generating a staggering 1874.07% return over the past year, the company faces challenges such as a -4.55% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 5.08 times, which may raise concerns among investors.

In the broader market context, the stock's short-term performance has been notably strong, significantly outpacing the Sensex's returns. While the stock's recent gains are impressive, the decline in delivery volume by -26.06% against the 5-day average suggests a potential decrease in investor participation, which could affect future price movements. Additionally, the company's flat results in net sales and a decline in profits by -24% over the past year indicate underlying weaknesses that could impact investor sentiment despite the stock's current upward trajectory.
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