Why is Surat Trade falling/rising?

Sep 18 2025 10:53 PM IST
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As of 18-Sep, Surat Trade & Merchantile Ltd's stock price remains unchanged at 6.15, reflecting a bearish trend as it trades below all key moving averages. Despite a recent increase in delivery volume, the stock has significantly underperformed with a year-to-date decline of 23.51% and faces serious long-term financial challenges.
As of 18-Sep, Surat Trade & Merchantile Ltd's stock price is flat at 6.15, showing no change (0.00%). The stock is currently trading lower than its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend. Despite a rise in delivery volume by 39.86% against the 5-day average, the stock has underperformed significantly over various time frames, with a year-to-date decline of 23.51% and a one-year return of -33.01%. The company reported its highest net sales and operating profit margins recently, but it faces serious long-term challenges, including a -184.72% CAGR growth in operating profits over the last five years and a negative EBITDA, which raises concerns about its financial health and ability to service debt.

In the broader market context, the stock's performance has been notably weaker compared to the benchmark, with a 1-month return of -4.50% against the Sensex's +2.14%. This consistent underperformance over the last three years, coupled with a poor return on capital employed of 3.45%, suggests that investor confidence is waning. The stock's risk profile is further exacerbated by its negative EBIT to interest ratio, indicating a lack of profitability. Overall, while there has been some positive movement in terms of sales and investor participation, the fundamental weaknesses and historical performance relative to the benchmark paint a concerning picture for Surat Trade & Merchantile Ltd.
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