Why is RDB Real Estate falling/rising?

Aug 19 2025 11:30 PM IST
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As of 19-Aug, RDB Real Estate Construction Ltd's stock price is declining at 290.95, down 1.99% and has fallen 13.15% over the past week. Weak fundamentals, high debt, and lack of investor interest contribute to its poor performance relative to the market.
As of 19-Aug, RDB Real Estate Construction Ltd is experiencing a decline in its stock price, currently at 290.95, which reflects a decrease of 5.9 or 1.99%. The stock has been underperforming, having fallen consecutively for the last seven days, resulting in a total decline of 13.15% during this period. Today's performance indicates that it has underperformed its sector by 2.76%. Additionally, the stock's delivery volume has significantly decreased, falling by 92.7% against the five-day average, suggesting a lack of investor interest. The company's fundamentals are weak, with a -34.78% CAGR growth in operating profits over the last five years, and it has reported negative results for the last two consecutive quarters, including a 26.1% drop in PAT and a 5.4% decline in net sales compared to previous averages.

In the broader market context, the stock's short-term performance has been notably poor, with a 7-day return of -7.74%, while the benchmark Sensex has increased by 1.76% over the same period. This stark contrast highlights the stock's struggles relative to the market. The company's high debt-to-EBITDA ratio of 17.19 times and low return on capital employed of 3.92% further contribute to its unfavorable valuation, which is reflected in the lack of interest from domestic mutual funds, holding 0% of the company. Overall, these factors indicate a challenging environment for RDB Real Estate, leading to its declining stock price.
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