Why is Ruby Mills falling/rising?

Jun 24 2025 09:27 PM IST
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As of 24-Jun, Ruby Mills Ltd. is priced at 236.70, showing a recent short-term gain but weak long-term fundamentals, including a low ROCE of 5.15% and minimal growth in sales and profits. Despite outperforming the market recently, its year-to-date performance remains negative, raising concerns about sustainability.
As of 24-Jun, Ruby Mills Ltd. is currently priced at 236.70, reflecting an increase of 2.5, or 1.07%. The stock has been gaining for the last three days, with a total return of 5.27% during this period. It is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a positive short-term trend. However, despite this recent uptick, the stock has shown weak long-term fundamental strength, with a Return on Capital Employed (ROCE) of only 5.15%. Additionally, the company has experienced poor long-term growth, with net sales growing at an annual rate of just 5.80% and operating profit at 0.61% over the last five years. The lack of domestic mutual fund investment, which stands at 0%, may also indicate a lack of confidence in the stock's valuation and business prospects.

In the broader market context, Ruby Mills' short-term performance of -2.01% over the past week contrasts with the Sensex, which has gained 0.58% during the same period. While the stock has outperformed the benchmark over the last month with a return of 12.88% compared to the Sensex's 0.41%, its year-to-date performance remains negative at -8.27%, while the Sensex has increased by 5.01%. This divergence suggests that while Ruby Mills may be experiencing a temporary rise, its overall performance relative to the market and its long-term fundamentals raise concerns about its sustainability.
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