Why is Shanti Overseas falling/rising?

Jul 14 2025 10:42 PM IST
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As of 14-Jul, Shanti Overseas (India) Ltd is currently priced at 12.00, reflecting a 4.99% increase today, but has significantly underperformed over the past year with a -22.83% return. Despite a short-term rise, long-term fundamentals remain weak, indicating potential sustainability issues.
As of 14-Jul, Shanti Overseas (India) Ltd is experiencing a price increase, currently at 12.00, reflecting a change of 0.57 or 4.99% upward. Despite this positive movement today, the stock has shown significant underperformance over various periods, with a 1-week decline of 13.48% and a 1-month drop of 39.58%. Today's performance indicates that the stock has outperformed its sector by 6.14%, although it is trading below all its moving averages, suggesting a bearish trend in the longer term. Positive results from the latest six months, including higher net sales and quarterly profits, contrast sharply with the company's weak long-term fundamentals, such as a -199.45% CAGR growth in operating profits over the last five years and a negative EBITDA, which raises concerns about its financial health.

In the broader market context, the stock's recent performance is notably poor compared to the benchmark, with a 1-year return of -22.83% against a positive return of 2.37% for the Sensex. This consistent underperformance over the last three years indicates a lack of investor confidence, further exacerbated by the promoters reducing their stake in the company by 2.92%, signaling diminished confidence in the business's future. While the stock has seen a short-term rise today, the overall trend and fundamental weaknesses suggest that this may not be sustainable in the long run.
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