Why is Shiva Texyarn falling/rising?

Sep 03 2025 09:18 PM IST
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As of 03-Sep, Shiva Texyarn Ltd's stock price is 183.64, up 1.63%, but it has underperformed the market year-to-date with a 17.88% decline. Despite recent positive quarterly results, concerns about long-term growth and high debt levels may be affecting investor confidence.
As of 03-Sep, Shiva Texyarn Ltd's stock price is currently at 183.64, reflecting an increase of 2.94 (1.63%). Today's performance indicates that the stock has outperformed its sector by 0.68%. The stock is trading above its 5-day and 20-day moving averages, although it remains below its 50-day, 100-day, and 200-day moving averages. Despite a significant drop in delivery volume by 91.25% compared to the 5-day average, the company has reported positive results for the last four consecutive quarters, with net sales growing by 28.13% and profit after tax increasing by 32.97%. However, the stock has a weak long-term fundamental strength, evidenced by a low average return on capital employed (ROCE) of 5.56% and a high debt to EBITDA ratio of 7.46 times, which may be contributing to investor caution.

In the broader market context, the stock has shown a 1.13% increase over the past week, while the benchmark Sensex has remained flat with a 0.01% change. Over the past month, however, Shiva Texyarn's stock has declined by 3.91%, contrasting with the Sensex's gain of 0.61%. Year-to-date, the stock is down 17.88%, while the benchmark has risen by 4.53%. This disparity highlights the stock's underperformance relative to the broader market, despite its recent positive price movement. The company's ability to generate returns has been inconsistent, with a notable increase in profits over the past year, but overall long-term growth remains a concern, which could be influencing investor sentiment.
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