Why is Sri Havisha falling/rising?

Sep 23 2025 11:28 PM IST
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As of 23-Sep, Sri Havisha Hospitality & Infrastructure Ltd is priced at 2.05, with a recent short-term gain of 4.59%. However, it has a year-to-date decline of 19.29%, high debt levels, and low profitability, indicating significant long-term challenges despite recent price increases.
As of 23-Sep, Sri Havisha Hospitality & Infrastructure Ltd is currently priced at 2.05, reflecting an increase of 0.03 or 1.49%. The stock has been gaining for the last two days, with a total return of 4.59% during this period. However, despite this short-term gain, the stock has underperformed over the longer term, with a year-to-date decline of 19.29% and a 1-year return of -6.39%. The company faces significant challenges, including operating losses and a high debt-to-EBITDA ratio of 12.30 times, which indicates a low ability to service its debt. Additionally, the stock's profitability is low, as evidenced by an average return on equity of just 1.45%. The falling investor participation, with a delivery volume drop of 75.44% compared to the 5-day average, further suggests a lack of confidence among investors.

In the broader market context, the stock's recent performance contrasts with the benchmark, as it has gained 2.50% over the past week while the Sensex has declined by 0.34%. However, the stock's longer-term performance remains concerning, as it has consistently underperformed against the benchmark over the last three years. While the stock is currently liquid enough for trading, its weak long-term fundamental strength and negative operating profits make it a risky investment. Overall, despite the recent uptick in price, the underlying financial issues and market performance indicate that the stock may still face significant challenges ahead.
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