Why is Simplex Infra falling/rising?

Sep 23 2025 10:36 PM IST
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As of 23-Sep, Simplex Infrastructures Ltd's stock price is at 309.05, reflecting a slight decline and underperforming the broader market recently. Despite a strong annual return of 22.88%, the company faces weak fundamentals and declining profits, contributing to its recent price drop.
As of 23-Sep, Simplex Infrastructures Ltd is experiencing a slight decline in its stock price, currently at 309.05, reflecting a decrease of 0.3 or 0.1%. The stock's performance today is in line with its sector, although it is trading lower than its 5-day moving average while remaining above the 20, 50, 100, and 200-day moving averages. Over the past year, the stock has generated a return of 22.88%, significantly outperforming the BSE500 index, which has declined by 3.33%. However, the company has shown weak long-term fundamental strength, with a negative average Return on Capital Employed (ROCE) and a concerning debt-to-equity ratio of 13.01 times. Additionally, the company has reported negative results for the last three consecutive quarters, with a substantial drop in net sales and profits, which may be contributing to the recent price movement.

In the broader market context, while Simplex Infrastructures has outperformed the benchmark in the long term, its recent performance shows a decline of 1.10% over the past week compared to a smaller decline of 0.34% in the Sensex. This indicates that the stock is underperforming relative to the broader market in the short term. The falling investor participation, as evidenced by a 37.53% drop in delivery volume against the 5-day average, further suggests a lack of confidence among investors. Overall, the combination of weak fundamentals, declining profits, and reduced trading activity may be contributing to the stock's recent downward movement.
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