Why is RTS Power Corpn. falling/rising?

Jul 07 2025 09:35 PM IST
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As of 07-Jul, RTS Power Corporation Ltd's stock price is declining at 161.25, down 1.16%, with a total drop of 6.41% over the past month. The company faces negative investor sentiment due to a significant profit decline and underperformance compared to the market and its sector.
As of 07-Jul, RTS Power Corporation Ltd is experiencing a decline in its stock price, currently at 161.25, which reflects a decrease of 1.9 or 1.16%. The stock has underperformed its sector by 0.92% today and has been on a consecutive downward trend for the last two days, resulting in a total decline of 2.83%. Over the past week, the stock has fallen by 1.86%, and its performance over the last month shows a significant drop of 6.41%. Despite a healthy long-term growth rate in operating profit of 53.14%, the stock's return on equity (ROE) is low at 2.4, and it is trading at a premium compared to its peers. Additionally, the company has reported a substantial profit decline of 15% over the past year, contributing to negative sentiment among investors.

In the broader market context, the stock has underperformed the benchmark Sensex, which has gained 1.53% over the past month, while RTS Power Corporation has seen a decline of 6.41%. The stock's performance over the last year is particularly concerning, with a return of -23.58% compared to the market's positive return of 4.31%. This underperformance, combined with poor management efficiency indicated by a low return on capital employed (ROCE) of 2.63%, has likely led to decreased investor confidence and participation, as evidenced by a 20.67% drop in delivery volume. Overall, these factors contribute to the stock's current downward trajectory.
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