Why is SMS Lifesciences falling/rising?

Sep 11 2025 11:04 PM IST
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As of 11-Sep, SMS Lifesciences India Ltd is currently priced at Rs 1,209.00, reflecting a 5.13% increase today and a positive trend reversal. Despite short-term gains, the stock has underperformed over the past year, facing significant long-term challenges.
As of 11-Sep, SMS Lifesciences India Ltd is experiencing a price increase, currently at Rs 1,209.00, reflecting a rise of Rs 59.0 or 5.13%. The stock has shown a positive trend today, outperforming its sector by 4.66% and marking a trend reversal after two consecutive days of decline. It reached an intraday high of Rs 1,209, and the delivery volume has increased by 26.83% compared to the 5-day average, indicating rising investor participation. However, despite a year-to-date return of only 0.58%, the stock has significantly underperformed over the past year with a decline of 27.98%. The company has an attractive valuation with a Return on Capital Employed (ROCE) of 10.7, but it has faced challenges, including a 3.4% drop in profits over the past year.

In the broader market context, SMS Lifesciences has outperformed the Sensex in the short term, with a 1-week return of 7.81% compared to the Sensex's 1.03%. However, it has lagged behind the benchmark over the past year, where the Sensex has remained nearly flat at 0.03%. The stock's long-term fundamentals are weak, with a low average ROCE of 9.00% and a significant decline in profits and net sales reported in June. This combination of short-term gains against a backdrop of long-term challenges and underperformance relative to the market suggests that while the stock is currently rising, it faces significant hurdles that could impact its future performance.
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