Why is Shiva Cement falling/rising?

Jun 25 2025 09:06 PM IST
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As of 25-Jun, Shiva Cement Ltd's stock price is Rs 34.65, up 3.43% recently, but it faces significant challenges such as a high debt-to-equity ratio and negative long-term fundamentals. Despite short-term gains, the stock has underperformed against benchmarks over longer periods, indicating potential risks for investors.
As of 25-Jun, Shiva Cement Ltd's stock price is currently at Rs 34.65, reflecting an increase of Rs 1.15 or 3.43%. The stock has shown a strong performance recently, gaining 7.88% over the last two days and outperforming its sector by 1.91% today. In the past week, the stock has risen by 6.39%, and over the past month, it has increased by 15.58%. However, despite these short-term gains, the company faces significant challenges, including a high debt-to-equity ratio of 13.65 times, negative operating profit growth, and a consistent underperformance against benchmarks over the last three years. The stock's long-term fundamentals appear weak, as evidenced by negative EBITDA and declining profits, which may deter long-term investors.

In the broader market context, while Shiva Cement has outperformed the Sensex in the short term, with a 6.39% increase compared to the Sensex's 1.61% over the past week, it has still underperformed the benchmark significantly over longer periods, such as the year-to-date and one-year returns. The stock's year-to-date performance shows a decline of 12.50%, while the Sensex has gained 5.91%. This disparity highlights the stock's volatility and the potential risks associated with investing in a company with high debt and poor long-term growth prospects, despite its recent price increase.
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