Why is Sundaram Brake falling/rising?

Jul 25 2025 09:14 PM IST
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As of 25-Jul, Sundaram Brake Linings Ltd's stock price is 900.00, down 2.61% after a three-day decline totaling 10.18%. Despite a recent positive return of 10.95% over the week, the stock has underperformed year-to-date by 33.23%, raising concerns about its financial health and management efficiency.
As of 25-Jul, Sundaram Brake Linings Ltd is experiencing a decline in its stock price, currently at 900.00, reflecting a decrease of 24.1 points or 2.61%. The stock has been underperforming, having fallen consecutively for the last three days, resulting in a total drop of 10.18% during this period. Despite opening with a gain of 2.26% today and reaching an intraday high of Rs 951.6, it also touched a low of Rs 870, indicating high volatility with an intraday fluctuation of 5.91%. Over the past week, the stock has shown a positive return of 10.95%, but it has underperformed against its sector by 1.2%. While the stock has generated a return of 14.10% over the past year, it has faced challenges with a significant profit decline of 48.8%, and its low Return on Capital Employed (ROCE) of 2.94% suggests poor management efficiency.

In the broader market context, the Sensex has shown a slight decline of 0.36% over the past week, contrasting with Sundaram Brake's strong short-term performance. However, the stock's year-to-date performance is notably poor, down 33.23%, while the benchmark has gained 4.25%. The company's high Debt to EBITDA ratio of 11.42 times raises concerns about its ability to service debt, further contributing to investor apprehension. Although the stock is trading at a discount compared to its peers and has shown healthy long-term growth in operating profit, the recent negative financial results and declining investor participation indicate underlying weaknesses that are likely influencing the current downward price movement.
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