Why is Sunshine Capital falling/rising?

Sep 04 2025 10:32 PM IST
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As of 04-Sep, Sunshine Capital Ltd's stock price is at 0.24, up 9.09% over three days, but down 90.12% over the past year. Despite recent gains driven by significant profit growth, long-term fundamentals remain weak, with declining institutional investor participation and poor year-to-date performance.
As of 04-Sep, Sunshine Capital Ltd's stock price is currently at 0.24, reflecting an increase of 0.02 or 9.09%. The stock has been on a positive trajectory, gaining for three consecutive days and achieving a total return of 26.32% during this period. It has outperformed its sector by 8.68% today. Despite this recent uptick, the stock has experienced a significant decline over the past year, with a return of -90.12%. Positive factors contributing to the recent rise include a remarkable growth in profit after tax (PAT) by 9103.1% compared to the previous four-quarter average, alongside the highest recorded PBDIT and PBT figures. However, the stock's long-term fundamentals are weak, indicated by an average return on equity (ROE) of 4.06% and a decrease in institutional investor participation.

In the broader market context, Sunshine Capital's short-term performance has significantly outpaced the Sensex, which only increased by 0.80% over the past week while Sunshine Capital rose by 14.29%. This stark contrast highlights the stock's recent recovery relative to the benchmark. However, the stock's year-to-date performance remains poor at -84.00%, while the Sensex has gained 3.30% during the same period. The falling participation from institutional investors, who have reduced their stake by 0.53%, raises concerns about the stock's long-term viability, despite its attractive valuation relative to peers.
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