Why is Rossell India falling/rising?

Sep 03 2025 11:05 PM IST
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As of 03-Sep, Rossell India Ltd's stock price is Rs 67.16, down 2.38%, and has underperformed its sector. Despite a recent increase in delivery volume, the company faces significant financial challenges, including high debt and declining profitability, contributing to its poor long-term performance.
As of 03-Sep, Rossell India Ltd is experiencing a decline in its stock price, currently at Rs 67.16, reflecting a decrease of Rs 1.64 or 2.38%. Today's price summary indicates that the stock has underperformed its sector by 2.75% and has fallen after three consecutive days of gains. The stock touched an intraday low of Rs 66.1, showcasing high volatility with an intraday fluctuation of 5%. Over the past week, the stock has shown a modest increase of 0.73%, but it has significantly underperformed over the longer term, with a year-to-date decline of 11.48% and a staggering 88.37% drop over the past year. Despite a very attractive valuation with a ROCE of 5.4 and a PEG ratio of 0.1, the company faces challenges such as a high Debt to EBITDA ratio and a negative CAGR growth in operating profits over the last five years, contributing to its recent price movement.

In the broader market context, while the Sensex has shown a slight decline of 0.27% over the past week, Rossell India’s performance has been notably weaker, indicating a lack of investor confidence. The stock's poor long-term performance, including a significant drop in net sales and rising raw material costs, further exacerbates its challenges. Despite rising investor participation, as indicated by a 23.66% increase in delivery volume, the overall sentiment remains cautious due to the company's inability to service debt effectively and low profitability per unit of shareholders' funds. This combination of factors suggests that the stock's recent decline is influenced by both its specific financial challenges and a broader market environment that is not favoring its recovery.
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