Why is Sunshine Capital falling/rising?

Aug 29 2025 10:28 PM IST
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As of 29-Aug, Sunshine Capital Ltd is priced at 0.21 and has significantly underperformed, with year-to-date declines of -86.00% and -90.05% over the past year. Despite reporting its highest quarterly profits, the stock is trading below all moving averages and has seen reduced institutional interest, indicating concerns about its long-term viability.
As of 29-Aug, Sunshine Capital Ltd is currently priced at 0.21, showing no change (0.00%). The stock has underperformed significantly over the past week and month, with returns of -4.55% and -16.00%, respectively. Additionally, it has experienced a dramatic decline of -86.00% year-to-date and -90.05% over the past year. Despite these declines, the company reported its highest quarterly profits with a PBDIT of Rs 29.16 cr, PBT less OI of Rs 29.15 cr, and PAT of Rs 29.45 cr. The stock is trading at a discount compared to its peers, with a very attractive valuation indicated by a Price to Book Value of 0.2. However, it is trading below all moving averages, and there has been a significant drop in investor participation, with delivery volume falling by -69.28% against the 5-day average.

In the broader market context, Sunshine Capital's short-term performance has been notably worse than the benchmark Sensex, which has declined by only -1.84% over the past week and -1.88% over the past month. The stock's weak long-term fundamental strength is highlighted by an average Return on Equity (ROE) of 4.06%, and institutional investors have reduced their stake by -0.53%, indicating a lack of confidence in the stock's future performance. This decline in institutional interest, combined with the stock's significant underperformance relative to the market, suggests that investors may be cautious about the company's long-term viability despite its recent profit increases.
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