Why is Sundaram Brake falling/rising?

Jul 28 2025 09:16 PM IST
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As of 28-Jul, Sundaram Brake Linings Ltd's stock price is Rs 871.10, down 3.21%, with a year-to-date decline of 35.38%. Despite recent positive returns, the stock faces challenges such as low ROCE and high Debt to EBITDA, indicating poor management efficiency and low profitability.
As of 28-Jul, Sundaram Brake Linings Ltd is experiencing a decline in its stock price, currently at Rs 871.10, which reflects a decrease of Rs 28.9 or 3.21%. The stock has been underperforming, having lost 13.06% over the last four days, and today it touched an intraday low of Rs 865.9. Despite a positive performance over the past week and month, with returns of 4.32% and 9.72% respectively, the stock has a year-to-date decline of 35.38%. The company has shown healthy long-term growth with an annual operating profit increase of 54.91%, but it also faces challenges such as a low Return on Capital Employed (ROCE) of 2.94% and a high Debt to EBITDA ratio of 11.42 times, indicating poor management efficiency and low profitability.

Broader market context shows that while Sundaram Brake has outperformed the benchmark Sensex over the past year with a return of 11.67%, it has significantly lagged in the year-to-date performance, where the Sensex has gained 3.52%. The stock's recent struggles are compounded by falling investor participation, with delivery volume dropping by 51.11% against the five-day average. This decline in trading interest, coupled with the stock's consecutive falls, suggests a lack of confidence among investors, which is further reflected in the stock's current underperformance relative to its sector.
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