Why is Shiva Texyarn falling/rising?

Aug 21 2025 09:20 PM IST
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As of 21-Aug, Shiva Texyarn Ltd's stock price is 182.65, showing a short-term gain but underperforming in the long term with a year-to-date return of -15.85%. Despite recent profit growth, concerns about its high debt and low return on capital employed suggest potential sustainability issues.
As of 21-Aug, Shiva Texyarn Ltd's stock price is currently at 182.65, reflecting an increase of 1.3 (0.72%). Today's performance indicates that the stock has outperformed its sector by 1.02%, although it is trading higher than its 5-day moving averages but lower than its 20, 50, 100, and 200-day moving averages. Despite a significant drop in delivery volume by 77.07% compared to the 5-day average, the company has shown positive results over the last four consecutive quarters, with net sales growing by 28.13% and profit after tax increasing by 32.97%. However, the stock has underperformed in the longer term, with a year-to-date return of -15.85% and a 5-year annual growth rate of only 0.20% in net sales.

In the broader market context, Shiva Texyarn's short-term return of +6.35% over the past week significantly outpaces the Sensex's +1.74% during the same period. However, the stock has consistently underperformed against the benchmark over the last three years, generating a return of -2.35% in the past year compared to the Sensex's +1.35%. While the stock is trading at a discount relative to its peers and has shown substantial profit growth, its weak long-term fundamentals, including a high debt-to-EBITDA ratio and low return on capital employed, raise concerns about its sustainability in the market.
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