Why is Shekhawati Inds falling/rising?

Sep 03 2025 10:36 PM IST
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As of 03-Sep, Shekhawati Industries Ltd is currently priced at 21.33, reflecting a recent increase, but has underperformed in the short term with negative returns over the past week and month. Despite strong ROE and increased promoter stake indicating confidence, long-term fundamentals are weak, raising concerns about future performance.
As of 03-Sep, Shekhawati Industries Ltd is experiencing a price increase, currently at 21.33, reflecting a change of 0.28 or 1.33% upward. Despite this positive movement today, the stock has underperformed in the short term, with a 1-week return of -2.16% and a 1-month return of -4.61%. The stock is trading below its moving averages across all time frames, indicating a potential bearish trend. However, there has been a notable increase in investor participation, with delivery volume rising by 40.69% against the 5-day average. The company's strong return on equity (ROE) of 51 and a price-to-book value of 5.6 suggest an attractive valuation, although the stock is trading at a premium compared to its peers. The recent increase in promoter stake by 1.75% signals confidence in the company's future, despite a concerning decline in profits of -67.9% over the past year.

In the broader market context, the stock has significantly outperformed the benchmark, generating a return of 145.45% over the past year while the BSE500 index has declined by -4.38%. This stark contrast highlights the stock's ability to deliver substantial returns despite the overall market downturn. However, the long-term fundamentals appear weak, with a -18.54% CAGR growth in net sales over the last five years and a high debt-to-EBITDA ratio, raising concerns about the company's ability to service its debt. The negative results reported for the last three consecutive quarters further compound these concerns, indicating that while the stock may be rising today, underlying issues could pose risks for future performance.
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