Why is Sheela Foam falling/rising?

Aug 14 2025 10:50 PM IST
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As of 14-Aug, Sheela Foam Ltd. is facing a decline in stock price at 671.35, down 1.02%, and has significantly underperformed the market with a -26.28% return over the past year. Despite low debt and attractive valuations, negative financial results and reduced investor interest are contributing to its downward trend.
As of 14-Aug, Sheela Foam Ltd. is experiencing a decline in its stock price, currently at 671.35, reflecting a decrease of 6.9 points or 1.02%. The stock has underperformed its sector by 0.26% today and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has seen a slight decline of 0.33%, and it has significantly underperformed the benchmark over the past year, with a return of -26.28% compared to the Sensex's 1.89%. Additionally, the stock's delivery volume has dropped by 75.41% against the 5-day average, indicating falling investor participation. Despite a low debt-to-equity ratio and attractive valuations, the company has reported negative results for the last eight consecutive quarters, with profits falling by 61.3%, contributing to the stock's downward trend.

In the broader market context, Sheela Foam's short-term performance has lagged behind the benchmark, with a 1-week return of -0.33% compared to the Sensex's -0.03%. The company's long-term growth prospects appear poor, as indicated by an annual operating profit decline of 17.48% over the last five years and a return on capital employed (ROCE) of only 4.41%. High institutional holdings at 25.75% suggest that these investors are aware of the company's fundamentals, which may further pressure the stock given its consistent underperformance against the benchmark over the last three years. Overall, the combination of negative financial results, declining investor interest, and poor relative performance to the market contributes to the stock's current downward trajectory.
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