Why is Shalibhadra Fin. falling/rising?

Jul 02 2025 09:44 PM IST
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As of 02-Jul, Shalibhadra Finance Ltd is priced at 127.95, having recently outperformed its sector but underperformed over the longer term with a -18.11% return in the past year. Despite positive quarterly financial results, concerns about its long-term growth potential and lower performance relative to the market may lead to negative investor sentiment.
As of 02-Jul, Shalibhadra Finance Ltd is currently priced at 127.95, reflecting an increase of 0.95 (0.75%). The stock has shown mixed performance recently, as it outperformed its sector by 1.98% today. However, it has been underperforming in the longer term, with a 1-week return of -0.74% and a 1-month return of -8.73%. Despite positive financial results over the last 14 quarters, including a 34.1% growth in profit after tax, the stock has generated a negative return of -18.11% over the past year. The stock is trading at a premium compared to its peers, and while institutional investors have increased their stake, there are concerns regarding its long-term growth potential due to a relatively low return on equity of 10.4%.

In the broader market context, the Sensex has performed better, with a 1-year return of +5.00% and a 1-month return of +2.50%. This indicates that Shalibhadra Finance Ltd has significantly underperformed the market, which may contribute to investor sentiment leaning towards selling. The stock's recent price increase may be attributed to short-term trading dynamics rather than a fundamental shift in its long-term outlook, as evidenced by the falling investor participation and the stock's lower performance relative to the benchmark over various time frames.
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