Why is Rajas. Tube Mfg falling/rising?

Jul 25 2025 08:53 PM IST
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As of 25-Jul, Rajasthan Tube Manufacturing Co Ltd's stock price is Rs 38.40, down 5.0%, and has declined 16.59% over the last four days. Despite strong long-term returns, recent financial issues and declining investor interest indicate a troubling outlook for the company.
As of 25-Jul, Rajasthan Tube Manufacturing Co Ltd is experiencing a decline in its stock price, currently at Rs 38.40, reflecting a decrease of 2.02 (-5.0%). The stock has been underperforming, having fallen for the last four consecutive days, resulting in a total decline of 16.59% during this period. Today's performance indicates that it opened with a loss of 5% and has not traded above this level. Additionally, the stock has shown significant underperformance over the past week and month, with returns of -12.45% and -27.95%, respectively. Despite impressive long-term returns, including a staggering 1060.12% over the past year, recent financial metrics reveal a decrease in promoter holding to 16.5%, weak operating profit growth, and a significant drop in net sales by 58.26%, contributing to the stock's current downward trend.

In the broader market context, the stock's recent performance contrasts sharply with the benchmark, the Sensex, which has only declined by 0.36% over the past week and 1.56% over the past month. This stark difference highlights the stock's significant underperformance relative to the market. The company's weak long-term fundamentals, characterized by a high Debt to EBITDA ratio and low profitability as indicated by a Return on Equity of 8.49%, further exacerbate investor concerns. Consequently, while the stock has historically outperformed the market, the current financial challenges and declining investor participation suggest a troubling outlook for Rajasthan Tube Manufacturing Co Ltd.
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