Why is Sheela Foam falling/rising?

Sep 24 2025 10:39 PM IST
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As of 24-Sep, Sheela Foam Ltd. is currently priced at Rs 695.00, reflecting a 2.29% increase after a trend reversal. Despite today's gain, the stock has underperformed over the past week and year, raising concerns about its long-term growth prospects amid weak market sentiment.
As of 24-Sep, Sheela Foam Ltd. is experiencing a price increase, currently at Rs 695.00, reflecting a rise of Rs 15.55 or 2.29%. The stock has shown a trend reversal by gaining after four consecutive days of decline and has outperformed its sector by 2.81%. Despite this positive movement today, the stock's performance over the past week is down by 0.71%, and it has significantly underperformed the benchmark over the past year with a return of -24.54%. The company has a low Debt to Equity ratio of 0.24 and high institutional holdings at 25.75%, indicating some investor confidence, but it has also reported negative results for the last eight consecutive quarters, which raises concerns about its long-term growth prospects.

In the broader market context, the Sensex has declined by 1.18% over the past week, suggesting that the overall market sentiment is weak, yet Sheela Foam's recent price increase indicates a relative strength compared to its immediate sector. However, the stock's year-to-date performance is notably poor, down 29.99%, contrasting sharply with the Sensex's gain of 4.58% in the same period. This disparity highlights the challenges Sheela Foam faces, as it continues to struggle with declining profits and consistent underperformance against benchmarks, despite today's positive movement.
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