Why is SMS Pharma. falling/rising?

Jul 09 2025 08:53 PM IST
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As of 09-Jul, SMS Pharmaceuticals Ltd is priced at 237.50, down 1.02%. Despite strong quarterly profits, the stock has declined 6.72% over the past year due to increased pledged shares and poor long-term growth prospects, underperforming the broader market.
As of 09-Jul, SMS Pharmaceuticals Ltd is currently priced at 237.50, reflecting a decline of 2.45 (-1.02%). The stock has been underperforming, having lost 2.66% over the last three days and showing a one-week return of -1.68%. It is also noted that the stock's performance today has underperformed its sector by 1.22%. Despite positive results over the last nine consecutive quarters, including a high operating profit to interest ratio and a strong cash position, the stock has seen a decline of 6.72% over the past year, even as profits rose by 38.8%. The presence of pledged promoter shares, which has increased recently, adds pressure on the stock, contributing to its downward movement.

In the broader market context, the Sensex has shown a slight increase of 0.15% over the past week, contrasting with SMS Pharmaceuticals' negative return. The stock's performance over the past month is also concerning, with a decline of 4.64% compared to the Sensex's gain of 1.32%. This divergence indicates that while the overall market may be experiencing stability or growth, SMS Pharmaceuticals is struggling, likely due to its poor long-term growth prospects and the increased proportion of pledged shares, which can lead to additional downward pressure in a falling market.
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