Why is Shetron falling/rising?

Sep 12 2025 09:35 PM IST
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As of 12-Sep, Shetron Ltd's stock price is Rs 131.30, down 2.74%, and has underperformed its sector. The stock shows a bearish trend with declining profitability and weak financial health, despite a relatively attractive valuation.
As of 12-Sep, Shetron Ltd's stock price is currently at Rs 131.30, reflecting a decline of Rs 3.7 or 2.74%. Today's performance indicates that the stock has underperformed its sector by 1.73%, with an intraday low of Rs 130.4, marking a decrease of 3.41%. Over the past week, the stock has seen a return of -3.49%, while its performance over the last month is also negative at -2.42%. Despite a consistent return of 2.34% over the past year, the company's profits have significantly fallen by 47.5%. The stock is trading below its moving averages across various timeframes, which suggests a bearish trend. Additionally, while the stock has a relatively attractive valuation with a return on capital employed (ROCE) of 12.6%, its weak ability to service debt, indicated by a poor EBIT to Interest ratio of 1.54, raises concerns about its financial health.

In the broader market context, Shetron's recent decline contrasts with the Sensex, which has gained 1.48% over the past week. This underperformance highlights the stock's struggles relative to the overall market. The company's long-term growth prospects appear weak, with net sales growing at an annual rate of only 8.47% and operating profit at 2.38% over the last five years. Furthermore, the flat results reported for June, including a significant drop in profit after tax, contribute to the negative sentiment surrounding the stock. Despite rising investor participation, as evidenced by a 171.06% increase in delivery volume, the overall outlook remains cautious due to the company's financial challenges and declining profitability.
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