Why is Spectrum Foods falling/rising?

Sep 17 2025 09:39 PM IST
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As of 17-Sep, Spectrum Foods Ltd's stock price is at 20.27, reflecting a slight decline and trading below key moving averages, indicating a bearish trend. The company has underperformed significantly compared to the market, with a return of -24.95% over the past year, primarily due to high debt and weak long-term growth prospects.
As of 17-Sep, Spectrum Foods Ltd is experiencing a slight decline in its stock price, currently at 20.27, reflecting a decrease of 0.02 or 0.1%. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Over the past week, the stock has underperformed with a return of -1.22%, while the Sensex has gained 1.56%. Additionally, despite a notable increase in delivery volume by 37.66% on September 16, the stock's long-term fundamentals remain weak, characterized by a high debt-to-equity ratio of 3.03 and negative EBITDA. The company has shown poor growth in operating profit over the last five years, which has contributed to its recent price movement.

Broader market context indicates that while the overall market has generated a return of -2.63% over the past year, Spectrum Foods has significantly underperformed with a return of -24.95%. This stark contrast highlights the company's struggles relative to the broader market. Despite some positive quarterly results, such as substantial growth in profit before tax and profit after tax, the overwhelming concerns regarding high debt and weak long-term growth prospects overshadow these gains, leading to a negative sentiment among investors.
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