Why is Surat Trade falling/rising?

Sep 26 2025 10:48 PM IST
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As of 26-Sep, Surat Trade & Merchantile Ltd's stock is at Rs. 6.15, down 2.23%, and has hit a 52-week low. The stock shows bearish trends, underperforms its sector, and has weak long-term fundamentals, leading to a negative outlook and a recommendation to sell.
As of 26-Sep, Surat Trade & Merchantile Ltd's stock price is currently at Rs. 6.15, reflecting a decline of Rs. 0.14, or 2.23%. The stock has recently hit a new 52-week low of Rs. 5.41 and has underperformed its sector by 0.34%. It has been on a downward trend, experiencing consecutive falls over the last two days with a total decline of 3%. The stock is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish sentiment. Additionally, there has been a significant drop in investor participation, with delivery volume falling by 56.66% compared to the 5-day average. Despite some positive financial indicators, such as a substantial growth in profit before tax and net sales, the company's long-term fundamentals are weak, highlighted by a -184.72% CAGR growth in operating profits over the last five years and a negative EBITDA, contributing to the stock's recent decline.

In the broader market context, Surat Trade & Merchantile Ltd has underperformed against the benchmark, with a 1-week return of -2.23% compared to the Sensex's -2.66%. Over the past year, the stock has generated a return of -32.71%, significantly lagging behind the benchmark's -6.30% return. This consistent underperformance over the last three years has raised concerns among investors, further exacerbated by the company's weak ability to service its debt and low profitability per unit of capital. The combination of these factors has led to a negative outlook for the stock, reinforcing its status as a strong sell.
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