Why is Sambandam Spg. falling/rising?

Jul 15 2025 10:09 PM IST
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As of 15-Jul, Sambandam Spinning Mills Ltd's stock price is Rs 144.95, up 7.25%. Despite recent short-term gains, the stock has a concerning long-term outlook with significant underperformance and weak fundamentals.
As of 15-Jul, Sambandam Spinning Mills Ltd's stock price is currently at Rs 144.95, reflecting an increase of Rs 9.8 or 7.25%. The stock opened with a significant gain today, outperforming its sector by 5.91%. Despite this positive movement, the stock has shown erratic trading patterns, not trading on 2 out of the last 20 days. Over the past week, the stock has returned +5.80%, while its performance over the past month is +2.51%. However, the stock has a concerning long-term outlook, with a -144.76% CAGR growth in operating profits over the last five years and a high Debt to EBITDA ratio of 10.51 times, indicating weak fundamental strength.

Broader market context shows that while Sambandam Spinning Mills has had a positive short-term return, it has consistently underperformed against the benchmark, with a -5.91% return over the past year compared to the Sensex's +2.36%. The stock's performance has been particularly weak over the last three years, where it has lagged behind the BSE500 in each annual period. This underperformance, combined with falling investor participation and liquidity concerns, suggests that while there may be short-term gains, the long-term outlook remains risky and uncertain.
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